The midland journal. (Rising Sun, Md.) 1885-1947, 1908-03-13
THE WESTERN MgRyLlND
in RECEIVERS HANDS
Railroad Unable to Meet Its Fixed
Charge Due April |.

Baltimore, Md. Especial Unable
to meet obligations which will ma
ture April /. 1908. the Western
Maryland Railroad passed into the
hands Of receiver, Judge Morris, in
the Circuit Court of the United
States, district of Maryland. signing
the order upon the application OF
the Bowling Green Trust Company.
Mr.. Benjamin Franklin Bush, presi-
dent OF the road, was appointed re-
ceiver. He gave bond for 100000.
The receivership does not come with
any surprise to financial circles, in
which the rumor of probable receiver
ship has been current for sometime.
The papers were signed in the Office
of Cans e Hannah, who, with Thomp-
son, VanderpoOl & Freedman, New
York, are solicitors for complainant.
Others present were Messrs. Bush,
George r. Gather and Lawrence
Grier, of counsel for the Western
Maryland.
The Western Maryland has out
standing loans maturing April /,
1908, to the amount of $3,776,750,
secured by pledge of $5,037,000 of
its first mortgage bonds. The COM
pany was unable to meet these loans
or to provide additional collateral
to secure their extension. In this
situation it was naturally unable to
borrow money necessary to meet
mortgage interest due on April 1st.
The situation has been the subject
for consideration on the part of of
ficers and directors, President B. F..
Bush having been in New York prac-
tically all of this week. In letter to
the board he stated the situation, and
the receivership was the only alter
native.
The Bowling Green Trust Com
pany, of New York, trustee of the
general lien and convertible per
cent. 50-year gold bonds of the
Western Maryland, after reviewing
the property acquired and the financ-
ing done by the defendant company,
says in its petition:
"Your orator hereby shows that a
semi-annual instalment of interest
upon thePfirst mortgage bonds of the
defendant company will mature and
be and become due and payable on
the first day of April, 1908, in the
amount of $749,620, and that
semi-annual instalment of interest
upon the general lien and convertible
mortgage bonds of your orator will
mature and be and become due and
payable ON the first day of April,
1858, in the amount of 100000;
and further, that the defendant COM
pany has outstanding certain indebt-
edness represented by notes in the
amount of $3.776,750,
which notes, together with interest
thereon, will mature and become due
and payable on the first day OF April,
1908; that as collateral security for
the payment of said aforementioned
notes there are deposited $5,037, 900
par value of first mortgage bonds of
the defendant company, but that the
same, if sold at their present market
price, or at the best price obtainable
under existing conditions. will who'll
ly fail to provide for the payment
of said notes; and your orator is
and believes that the hold
ers of said notes are unwilling and
have refused to extend the payment
of the same. and intend to demand
payment of the principal and interest
thereof at maturity, and that the de-
PENDANT company is and will be
wholly unable to pay and discharge
the same"