New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-10
B. & 0. BONDS
Issue To Be S63, $780, 900, Con-
Yertible in Stock.


Railroad Company yesterday voted TO au-
thCrize an issue Of So3.2j0,oO0 twenty
wear A. per cent bonds. convertible FOR
ten wears into common stock at Sllo a
share. The bonds are To be offered 10 the
preferred and common stock holders OF
The company pro rata 10 the extent Of 30
per cent Of their holdings AT the price OF
a5is The action OF the directors was
purely formal. as arrangements have al
ready been made with Speyer a Co. and
Kuhn. Loeb 4 Co. 10 underwrite tho issue.
According 10 present plans, subscriptions
are 70 be paid in full Oh March 3. or IN
irstalNlenis. as follows: 30 per cent on
March }. 30 per cent on April Is and 40
ner cent on May Is.
An officer Of the company said that II
seemed desirable 20 take advantage OF
the present condition Of the money mar
k.t to recoup the treasury for sums eX-
pended for construction and equipment
and to provide for further requirements
Of this character
II is the intention Of the mans cement
70 use the funds derived from the sale
Of the bonds in paying Of Sj0.OoO.OOO OF
notes maturing neXt June, although II Is
stated that such action will depend on
circumstances and conditions at that time.
Another important feature of the meet
ing Was the resignation Of Samuel Rea
as member Of the board Of directors
Mr. Rea has been member or the Balt-
more & Ohio board for twelve years. but
owing 10 his recent election 10 the prcsi-
dency OF the Pennsylvania system ana the
consequent increasing tax on his time ana
attention he felt II necessary to be relieved
Of this part OF his duties. Robert Gar
,ett. OF Baltimore was elected TO succeed
him.
Mr.. Rea's retirement leaves the Penn
sylvania with TWO directors out or twelve
on rho Baltimore & Ohio board Mr. Car
rett is grandson OF the late John w
Garrett. founder OF the Baltimore & ohio
system. and rs president for nearly
third Of century.
A report Of the roads earnings for the
six months ended December 81 was pre-
scented. Gross revenues were s52,fo6,slO,
an increase Of s5.524.526; expenses. $780,
432.492, An increase Of S4,31S,702; oper-
atinS income. 7lf,-lo'"of, q" iheiS"'S Va
t1.O0S.6Ss, and net corporate income. vs.
siS.ss6. an increase OF si,0S1.s27. De-
Quoting the preferred dividend OF $1,000
600 leaves s7.4OO, 900, or nearly per cent
earned on the common stock. The divi-
dcnd on the common requires approx
mately $4,000 900. leaving surplus OF
about S.. 000, 900 above dividend require
rnrnts for the six months period. While
tho first six months Of the fiscal year. II
was stated, are customarily the more
profitable. with reasonably active traffic
this surplus should be Substantially in
creased In the second period
The new bond issue Is the first large
niece of financing the Baltimore & Ohio
has done since June |. 1910, when the
$50. 100000 a., per cent notes TO be re-
tired mainly by the new bonds were Of
fered 10 the public. A large portion OF the
older issue was sold In England and Ger
many. The Pennsylvania recently made
short term loan at 5k per cent. while
the New Haven borrowed on a 5is per
cent basis In December. For this reason
the opinion was expressed In banking
circles that the Baltimore & Ohio flnanc-
ing had been done on n satisfactory basis,
considering the time and the fact that
other strong roads have had to renew
notes on considerably higher basis than
year ago.