The sun., 1909-05-30
DAYTON PLAN ANNOUNCED
sD. 70 TAKE OVER CONTROL
At 4N ARBITRATED PRICE

~, ,n,y I, IOl0-Meanwhile tho Read
,n,,ment Plan Contemplates Two
Nortsagcs. One for SIS ,OOO 900 and
ope for $40, 900, 900, to Care for Out.
standing OhliE ations and Betterm ents
representatives of the various interests
,-yolyed n a transfer Of control Of the
C,nclnnat. Hamilton and Dayton have
come toyether on plan which was an
ropnced Yesterday. The committee rep
rs.enting the SIS 1000, 900 Of ~, per cent.
oo,lateral trust gold notes and the repre-
s.ntatves of the B. 4 o. held final sessions
on Thursday
Nothing is now required but the ap-
,rovsI bv the court which appointed a
receiver for the road Of the mortgages Sc
curing forthcoming bond issues. The
road, which has been in the hands OF Jud-
.on Harmon. now Governor Of Ohio, as re-
ceiver since December. 4 1905. will be,taken
out Of the courts, it is expected. by August
10
The plan OF readjustment. as the official
announcement describes 1t. oontemplates
as7s,ooo, 900 first and refunding mortga &c
and general mortgage of $20. .ooO, 200.
These two issues are to take care OF all the
oorpanys obligations, provide working
capital and supply a reserve for future
uses. The controlling stock. now owned
byJ. P. Morgan & Co.. Is to be acquired by
the Baltimore and Ohio at the end Of seven
wears from July /. 1909, at price then to be
f1ed By arbitrators. In the meantime
the stock is to be vested in three voting
~ xrINv, IL 30 I~, ~ @r>et
dent for the time being OF the Baltimore
and Ohio The first and refunding mort
gage will be dated July /, 1909. and run to
July /, 1859. twill bear interest at per
cent This mortgage will cover all the
lines Of railway Of the company. all its
leasehold rights. all stocks OF subsidiary
companies owning operated lines and all
property acquired by use OF the bonds
or Of their proceeds. The present issue
will amount to e27.5O0, 900 or this
s,5oo, 900 will 90 to the payment or ad-
jus,nent Of the oompnay's indebtedness.
both due and accrued. Included in
these items is the payment made by the
noteholders' committee for coupons Of the
refunding bonds or purchase money, gold
notes due July l. 1918. In addition
5000 900 will be issued for improvements
now needed, s.. 900, 900 for necessary work.
ing capital and sl3 900, 900 for collateral.
The rest of the issue will remain in
the treasury, $2s, $4,000 being held to
refund underlying bonds and the rest
for additions, improvements and better
ments. The s13,OOo.ooO to be used for
collateral is to be pledged to secure not
a. - 10 =.
4 per cent. notes due July /. 1918. These
notes we're authorized by the c. H. & d.
stockholders on February 7. 1908. to take
up the refunding Colds Is. Of which there
was sl1,557, 900 outstanding. Hitherto
these notes had been secured by the re-
funding bonds surrendered. Besides the
new collateral put up the notes will be
secured by the guarantee Of the Balti-
more and Ohio. Upon the guaranty
being made the 1904 refunding mortgage
bonds which the notes retired will be
cancelled
The general bonds are dated July /,
1909. and are to run to July /. 1880. The
lien Of this mort gage comes next to the
lien of the first and refunding issue on
all the property that the senior issue
may ever have lien on and covers all
other property acquired b! the use Of the
are to be exchan ged at par for the
$4,000, 900 OF "A per cent. notes due Sep
tenber 1, 1908. The note holders are
also to get per cent additional in cash.
When the exchange is effected 7,75l ,+25
cf preferred stock. part OF the present
coiSiteral will be cancelled. The inter-
est on this issue. will vary according to
nj In the first two vaa rs
1t will be at the rate Of "A per cent, de
pendent upon income and upon the ois-
cretion Of the board" The next three
wears the holders will get per cent.
absolutely and 81 per cent. conditionally.
For the two years following they will re-
cent. if conditions warrant. By that
time the voting trust vii! have termi-
nateo and "A per cent. will become
fixed rate of interest. AS soon as the
Baltimore and Ohio acquires ownership
OF the stock. moreover. it agrees upon
the request of any holder Of general
mortgage bond, either to purchase at
Of its own Is, due 1885, Before 1915 the
general mortgage bonds originally is
sued are subject to call at par and ac-
crued interest, while the guaranteed
bonds may be taken up at 1903 and accrued
Interest. These guaranteed bonds are
SouU,UUU OF tne - ,oUOUUU IlTSt ana re-
funding bonds issued to settle debt.
and $4,000 put out under the same
mortgage TO pay for improvements and
raise working capital.
Until the c. H. and D. stock is finally
taken over the committee representing
the 5000 900 noteholders will have one
director on the board. The form Of all
indentures, together with all corporate
action involved in putting through the
plan is subject to the approval OF coun-
sci for the notes committee and OF coun-
sci for the representatives Of the $ll $751;
no0 purchase money noteholders. for j. P.
Morgan d Co. and FOR the B. and O.
The expenses Of the notes committee,
Including fees Of its depositary and coun-
sci are paid in full as part Of the plan.
Annexed TO the plan Of acquisition Is
schedule of the roads liabilities, showing
that the Indebtedness payable includes
2.lI 600 Of receiver s certifica tes, demand
notes and unpaid vouchers; 81 .048. 900 in
tersst past due on bonds; s., ,048. 900; de-
mand notes for money borrowed in 1905.
81 5s2 so secured by 81 500. 900 OF con-
solidated genera mortgage bonds; claims
for materials and supplies sold to the
company prior to the receivership. and
now involved in court proceedings, ST.
Os?6Co demand notes FOR money bor-
rowed in 1905 (unsecured). $s92 ,622; unpaid
Judgments, 100000; amount due the
Pare Marquette. 81, 364, 900; advances In
connection with the Ashland and 1ronton
Bridge C'omnany and the Toledo Termi-