New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-01-03
P NJ. DIVIDENDS PASSED.
O.. III. AND ID. IN DEFAULT.
No Funds to Pay Coupons on C., c.
and L. and r. r.. and T. Bonds.

Another chapter was added yesterday to the
history of the Cincinnati Hamilton and Dayton
Railroad The guaranteed dividends on Fere
Marquette common and preferred stocks, under
the lease by the Cincinnati Hamilton ana Day
ton were not paid at the office of r. winthrop
& Co. and that firm said that it was not aware
that these dividends were being paid by any one
else.
The American Loan and Trust Company. of
Boston. said that 1t had received no funds 10
meet the January coupons on the So9OoVO
Cincinnati Hamilton and DaytonPere Mar
quette per cent collateral trust bonds secured
by Chicago Cincinnati and Louisville STOCK
The United States Mortgage and Trust Company
had not received funds for the payment of the
coupons on the SO, 100000 AZ per cent first mort
gage bonds of the Toledo Railway and Terminal
Company guaranteed by the Cincinnati, Hamil-
ton and Dayton and the Pere Marquette.
The Cincinnati Hamilton and Dayton was the
central factor in the Great Central system, and
to form the system had gathered in the Pere
Marquette secured by a lease guaranteeing D
per cent on the common stock, and the two
together obtained the Chicago Cincinnati and
Louisville with an issue of $3,500,000 joint col
lateral trust bonds. secured by Chicago. Gin
cinnati and Louisville stock. The Toledo Rail
way and Terminal Company give both the Gin
cinnati, Hamilton and Dayton and the Pere
Marquette entrance into Toledo. They gained
control Of it by guaranteeing the interest on the
bonds. In September last ]. P Morgan & Co.
sold the Cincinnati, Hamilton and Dayton to
the Erie but the Erie repented of it's bargain
and shortly thereafter the Cincinnati, Hamilton
and Dayton went into bankruptcy, and Judson
Harmon, OF Cincinnati, was appointed receiver.
1t was generally understood that it the
intention to dump the Chicago, Cincinnati and
LOUISVILLE overheard. Mr.. Harmon contended
that the sale of the road to the Cincinnati,
mad never been completed. According to dis
patch from Cincinnati, he not that
the interest was due the collateral bonds
ana mad made no provision to meet the coupons,
as he did not consider the sale completed. He
did not think, SO the dispatch said that 1t was
necessary for him to take any action at present.
AS far as the interest the Pere Marquette
stock is concerned it would seem that If it is
not paid the lease is broken. and with the
Chicago, Cincinnati and Louisville already
out, the Great Central System returns to it's
component parts. There still remains, however,
the Toledo Railway and Terminal Company. A
reorganization Of that company was effected
last Saturday, the old officers having resigned,
and representatives Of J. P. Morgan & CO.
being elected.
George w. Perkins was elected president and
George f. Brownell. of this city, vice-presdent.
The new board of directors consists of F. w.
Stevens, Of Detroit; c. @. Cunningham, Detroit;
Thomas ]. Walsh, j. E. Howard and J. L.
Cramer, of the Cincinnati, Hamilton and Day
q y. A.
and John c. Bills. Of Detroit. Russell Harding
resigned president, T. 3. Fogg as vice-presi-
dent, and Eugene Zimmerman chairman of
the board of directors. When the bondholders
heard of this they felt confident that the in
terest the bonds would be paid promptly,
and they were astOunded when it was not paid
yesterday. At the Offices Of J. P Morgan &
Co. 1T said that no instructions had been
received 20 pay the coupons and the firm was
not paying them.
At the close of business the United States
Mortgage and Trust Company reiterated that
Railway and Terminal Company bonds had
not been received there. It was added, however,
that this could not be called default, as most
mortgages have a provision whereby proceed
ings in foreclosure cannot be brought for GER
tain time.
There was report that the reorganization
of the Toledo Railway and Terminal Company
provision had been made to take care Of the
interest on the bonds by the issuance of re-
ceiver's script OF the controlling company. II
this should not be done. and no provision should
be made to take care of the interest within the
stipulated time, the road could be sold under
foreclosure proceedings and a desirable en-
trance into Toledo would be in the market.
There We're no transactions yesterday on the
Stock Exchange IN either Pere Marquette COM
mon or Pere Marquette preferred stock The
last recorded quotations were 30 bid for the
common. 55 asked. and 30 bid for the preferred
60 asked The common stock sold as high as
100 on February II 1907, while the preferred
touched S719 on February g. 1868. Since the
recent troubles of the rOac there has been no
ma rkst for the stock.