The Washington herald., 1914-10-11
B. 8 0. WANTS
new MORTGAGE
President Asks Stockholders
to Approve Plan for Refund
ing and Future Financing.
PUBLIC UTILITY DIVIDEND
European War Has Cut Rates Cotton
Exchange Report Southern Rail-
road Dividend in Scrip.

Daniel Willard. president Of the Balti-
more and Ohio, is sending to stockholders
a letter calling attention to the impor-
tance of the Forthcoming stockholders'
meeting to be held November 1e ...-
1t is planned to issue new mortgage
covering the entire system and subsidiary
lines. Total amounts Of bonds issuable
will be limited to oo0oo Mr.. Willard
calls attention to the Baltimore and Ohio
mortgages now existing, aggregating
Sss4 5s7. .TSo
The circular continues:
The market for other securities not
having been favorable in the recent past
4 became necessary for the company to
issue short-time notes for its require
ments; the issue of such notes at present
outstanding amount to $SS,oeo,0Oo, matur-
ing June !. 1915
with the exception Of the first mort
gage, which provides for a further issue
Of 81 0O6, 900 of bonds each year for nine
years, the several mortgages Of the COM
pany afford no provision for future re-
uuirements. Consequently, there has been
under consideration for some time past
a plan for making a mortgage covering
the entire system and subsidiary lines,
under which bonds may be issued to re-
tire existing Indebtedness as II natures,
and to provide funds needed from time
to time for additions to and extension OF
the company's railroad and property
necessary for the further development OF
the important territory occupied by your
lines and to care for the constantly ex-
pandinE rafnc.
I'Tbe stockholders will be asked TO con-
slider a plan to meet the financial require
ments Of the company as above indicated
and, II approved, to authorize the execu-
ton of a mortgage covering the entire
system and subsidiary lines, under which
bonds may be issued in series from time
to time for refunding and other corporate
purposes Each series as issued will bear
such rate of interest and generally be in
such form as to best meet then existing
conditions; but all will be equally secured
by the same mortgage. 1t is proposed TO
limit the amount of bonds which may be
issued under the mortgage to t6OoOOO,OOo'
unless the stockholders should later give
further consent to additional issue, but
at no time shall the amount outstanding,
together with all prior debt, exceed three
times the capital stock Of the company"
PubIie Utility DIvIdcndS.
In the past two months there have
been more dividends OF public utility
companies either passed, reduced or de- |
ferred than in any other similar period. |
This, of course was, Eith one. exception
brought about by. the European war. The |
one execution Is the Capital Traction
Company, of this city. which reduced
its quarterly dividend from II per cent
to N per cent and gave as its reason
the trsffic requirements which have been
imposed upon it by the utilities commits |
sion Of the District of Columbia, which |
did not result in increased earnings
commensurate with the expenditures
made.
In practically no case, however, can the |
recent dividend action Of public utility |
companies, in which a change. in rate
was made, be attributed to any falling
of in earnings. In fact, operating in |
come Of the properties has invariably
shown advances over the same period of
1913 and in many cases the normal IN
crease has been maintained.
The tightness Of money. caused by the |
war is directly responsible for the re-
duction in dividend disbursements. Un-
der the prevailing conditions it is practi-
cally impossible for utility companies TO
obtain funds for construction purposes
the sale Of securities. With this avenue
of financing closed. it is necessary that
construction work be paid for out of in
come, which of course reduces the funds
a available for dividend disbursements.
Cotton Exchange Report.
A comprehensive report by the board
OF managers OF Ine Ne" IOEk OoNlOh |
Exchange has been posted, giving ap-
proved amendments TO bylaws. After
ten days consideration by the members
a vote will be taken on Monday, Oc-
tober l9 at II a. m. in the gallery room
of the exchange. These amendments in
clude many features applicable to con-
tracts and methods Of trading under the
future laws, known as the Lever act.
OF special interest are the rules appli-
cable to commissions. The most i'm
portant changes made in this part of the
bylaws include an advance from $50
10 SO for each 100 bales bought or sold
for account Of non-members, making the
round transactions OF both buying and
selling $50 instead of SIS as at present.
In transactions for members the charge
Of g. 20 for each 100 bales bought or sold
is advanced to $, making SO for the
round transaction Of both buying and
selling.
The charge for floor brokerage by one ]
member buying or selling for another is
advanced to 81 instead of IS cents per
100 bales.
Amendments to the New York Cotton
Exchange bylaws include changing of