The Fulton County news. [volume] (McConnellsburg, Pa.) 1899-current, 1908-03-12
THE WESTERN Maryland
IN RECEIVERS HANDS
Railroad Unable to Meet Its Fixed
Charge Due April |.
PRESIDENT Q. r. BUSH APPOINTED
Business Had Been Steadily lncreas.
ing, but Maturing Obligations and
Problem to Be Met in Commodity
Clause Of Fedral Rate Law Precipi
tated Court Action.


Baltimore, Md. Especially Unable
to meet obligations which will ma
ture April 1, 1908, the Western
Maryl1nd Railroad passed into tho
hands Of a receiver, Judge Morris, in
the Circuit Court of the United
States. district of Maryland, signing
the order upon the Application o.
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, ir
which the rumor OF probable receiver
ship has been current for sometime
The papers were signed in the Office
of Cans & Haman, 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 l.
1908, to the amount of s3.776,150,
secured by pledge of $5,037, 900, of
pany was unable to meet these loans
or to provide additional collateral
to secure their extension. In this
situation 1t 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 ana directors, President b. f.
bot tfn f,,
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 4 per
cent. 5O-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 q
semi-annual instalment of interest
upon the first 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 S749,620, and that a
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
1908, in the amount of $200,O00:
and further, that the defendant com.
pany has outstanding certain indebt.
edness represented by notes in tNe
principal 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. 200
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
unuer existing conditions, will who'll
ly fail to provide for the payment
OF said notes; and your orator is
informed 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-
fendant company is and will be
wholly unable to pay and discharge
the same"