The Fairmont West Virginian. (Fairmont, W. Va.) 1904-1914, 1910-05-09
4O,OOO,OOO FOR
THE B. AND o.
OFFICIAL ANNOUNCE MENT o IS
sle aFlA sAclAt RRoJEcTsTo
lNcREAsE EeUiPMgNT


oaicially announced that II las arfang
ed. through bankers Messrs. Kuhn.
Loeb q Co aad 81 esst g co fott6e
sale! Of forty million out ofs total Isl
sue Of fifty million dollars Of its, three
year four ana e,liaif per cent. gold
notes.
An officer Of the company stated
that the proceeds Of the notes sold
will be used for the purchase of!addi.
tional equipment needed to take care
Of the business already olEeredl as
we'll ash to provide for such Reasonable
increase as may be expected Id the
immediate future, and also; providing
additional second and third tricks
where needed, and other facilities
necessary for the next; three years.
The ten million dollar notes, not
offered for sale now, willsbe reserved
to take up ten million dollars one.
year notes, which the company sold in
March, and which are the only out.
standing obligations Of short maturity,
the Baltimore and Ohio not having
issued any car trusts, or floating in
del tedhess Of any kind.
The company has in its treasury
s2s,0OO,OOO per cent. Baltimore and
Ohio Chicago Terminal bonds repre-
senting the cost to the Baltimore and
Ohio Railroad Company, Of the Chi.
cago Terminal Transfer Company.
These securities have been paid for
and represent clean treasury asset,
and could have been sold, a desired,
at the present time. but il Wastnot
thought advisable to sell sdchsa Sc.
curity at this time at existing rates.
While its business suffered with
other roads during the recent depres.
sion, it has shown wonderful recuper.
alive strength during the present as.
cal year. the gross earnings for the
first nine months exceeding thosesot
the same period Of last year by aps
proximately 100000, and its earn
ings for the present fiscal year will
probably equal, Il not exceed. the earn
fngs of31sOS and 1901, which were5the
It's; history,
The territorysseryed by the Balti-
more and Ohio railroad Is a heavy
tonnage producer, and has great posi-
bilitfes for future development, and
the company's facilities during the \
past winter have been inadequate to
properly care forit.
It is believed that the expenditure
Of the amount authorized for new
equipment and such other facilities
as may be necessary will put the prop
erty in shape to show annual gross
earnings in excess Of s1OO,OOOOOO and
that this figure will be reached well
within the next three years, providing
only normal business conditions OBJ
tain.
The Baltimore and Ohio railroad
has been very greatly strengthened
in the West by its purchase Of the
Chicago Terminal Transfer Company,
and it is believed that the control Of
this valuable property will result in
adding greatly to the railroads busi-
ness into and out OF its northwestern
terminal.
During the last ten years the Balti-
more and Ohio Railroad Company,
with the exception of a comparatively
short period following the depression
of 1908, has been unable the creator
portion Of the time. because Of lack
Of equipment and facilities, to handle
the business offered It on its own rails
and has not been able at any time
during that period to obtain its fair
share Of business that would have
come to 1t from connections. II it,had
been in shape to contribute Its pro.
portion Of the necessary equipment
The funds now arranged for VIII
enable the company to proceed yigof.
ously, and at once, towards providing
such additional equipment and facili-
tics as are needed for business al.
ready at hand. In that respect the
condition Of the Baltimore and Ohio
is quite unlike that of the roads in the
West, where it has been thought wise
to spend large sums in anticipatipnof
business to be developed. and ;gener-
ally such action has been fully justi-
fed by results. with the Baltimore
and Ohio company it is not aquestlOn
Of waiting for new business to be de-
yeioped. 1t is already at hand itnpa.
tiently waiting for the railroad com
pany to get III shape to handle II.
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