New-York tribune., 1908-01-03
B. 80. WON'T BUY STOCK
Deal off uith Chicago Terminal
Transfer Minority Holders.

H. S. Mott secretary OF the stockholders pro
tectve committee OF the Chicago Terninaf irahslsi
Railroad Company, announced yesterday 'ha' ~
deal which had been pending for some months Dy
which the Baltimore & Ohio Railroad company
as tn nurchase the preferred stock OF the minority
holders at SIS a share had been declared on MI
Mott added that the litigation instituted oy ths
minority stockholders to abrogate the isaSe ., .s
terminal company &c the Baltimore & Ohio on the
orornd that the rental of 900 was far too low,
and which had been temporarily dropped pendins
the outcome of the purposed deal would no" Dc
pushed to conclusion
The protective committee Of the terrninai cofi-
pany was organized to take care OF the interests
of the minority stockholders following the appoint
ment of a receiver in April. 1906 II is composed Oh
George l. Malcolm, chairman: George ID hacnay,
Edward A. Morgan. Edward l.. Oppenhelm anu
James L. Laidaw. In circular letter 10 the
stockholders dated January 2 1905. the committee
says it to report that the executive committee
OF the Baltimore & Ohio company has not YET
ratified the arrangement agreed upon for the saie
of the preferred stock Of the terminal company
and that as the time for such ratification expired
December g. 1907. ano the railroad company mas
already obtained two extensions, the committee
has not thought 1t necessary to trouble the stock
holders with requests for further extensions III
says Il has determined to ask them for general
deposit of all stock under regular stockhoIderS
protective deposit agreement by which the COM
mittee will be authorized tc take ell such steps
1t may deem necessary fully TO protect the in
terest5 of the stockholders. a copy OF the agree
ment incIosed with the circular. Each depositor
becoming q party to it is required To contribute
so cents for every share of stock deposited by him
to assist in defraying the expenses and disburse-
ments of the committee The most recent ap-
praisals of the properties Of the terminal COM
pany,'' the committee says, have shown them to
be of value of upward of s27000OO0 against which
there is Judgment in the foreclosure suit for
$l6s2i.6S9 7s which. together with urderying liens.
receivers certificates, accumulated ireerest, etc.
makes a total liability Of something less than
s19.Od0.0a. leaving equity in the property OF
ward of S. c00co. The circular letter continues in
part:
1t is that alleged lease. dated April 1, 1903, 70 the
Baltimore & Ohio Company. at the ruinopsy low
the agreements concerning the same, which brought
itased tn the ' RaIfiI3ore "a e Ohio comnsnT benS
worthy Of d rental of not less than sSoo,ooo per
The properties leased to the Baltimore 6 Ohio
0a the nd most 5b oy o @
stockholders of the Terminal company are assert
ea eea Of asd lease oq o the the s s
or eafe viii fa hardy al be the ht e
than just about sufficient 70 pay the mortgage
etc with the Baltimore & Ohio company in pos
OF such large e noek 6d Of he III m co
fcient left to accommodate another large railroad
company
The circular explains that the stockholders pro-
tectiye agreement does not give the committee
power to dispose Of the deposited stock, but that
any plan of adjustment or reorganization must be
submitted to the depositing stockholders for their
individual approval Finally. the stockholders are
urged to deposit their stock promptly with the
New York Trust Company Those of them who
have already deposited their stock under the terms
of the proposed sale to the Baltimore & Ohio
requested return their certificates to the trust
company and receive certificates under the
stockholders protective agreement.
Under the arrangement with the Baltimore &
Ohio referred to in the circular. the committee
required to agree definitely TO sei not less than
5000 shares of the preferred stock at SIS share.
Mr.. Mott said yesterday that certificates for ap-
proximately $500 shares deposited with the
New York Trust Company required, and that
the committee stood prepared to deliver upward OF
5000 additional shares He added that pre-
ferred stock of the Terminal company consisted
OF total issue OF 10000 shares, OF which approxi-
mately 1900 shares were understood to be owned
controlled by the Burlington, that left about
$1,000 shares unaccounted for Mr.. Mott said that
in his opinion the failure~of the Baltimore q Ohio
company to take up the stock il had ar
ranged do due the financial situation
which had developed since the arrangement was
made. The railroad company had definitely
declined ratify the agreement he said, but
owing the money stringency. had evidently been
unable TO raise the necessary cash.