New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-07-02
C., H. I'D. DEFAULTS
ON BOND INTEREST
Action Not Followed by
New Receivership Suit
as Expected.

Defaul. Yesterday by the Cincinnati
| Hamilton & Dayton Railroad OF the IN
terest due on approximately SlO,OOo,OOo
of bonds not guaranteed by the baiti-
more & Ohio and on s9,207.0O0 refund
/ ing 4 per cent bonds of the fere
Marquette Railroad was not followed
by new receivcrship proceedings as
was generally expected in the financial
district. In behalf Of the protective
committee representing the retundlhg
Is. however il was stated that dc-
mand had been made for the payment
Of the semi-annual interest due and
that legal action would be taken 10
enforce the interest guarantee FRED
crick Strauss, of j. x W. Seligman
/ Co.. is acting chairman OF the com
mittee. in the absence OF bengahlln
Strong. president of the Bankers trust
Company. .
The reason for the c., II. e. DIS IN
ability to meet its July l interest," oo
/ legations was explained by an ornclai
as being due to the spring noods OF
/ 1918. The Baltimore e. Ohio assumed
/ responsibility of restoring inc prop.
orty to normal condition, bat the cost
proved so great that the directors oil
the Baltimore e. Ohio decided that they
would be no longer justified IN extend
ing credit to it's subs diary beyond tne
legal obligations. In the last year INC
Baltimore e. Ohio advanced ABOUT
I So. 500 900 for purposes other than con
| struction. and since the c. II. y. was
tsken over from ]. p. Morgan & Go.
the parent railroad has advanced APP
proximately s2l,00OOOO. Inc ROAD
deficit this year will be ABOUT
/ S3.500,00O. H..
II was also learned yesterday that
n movement may be started TO com
mel the C.. II. e. ID. TO pay the July l
interes. on the s3,l62,000 per cent
bonds of the Indiana, Decatur d west
ern division and on the S4,I22,OOO As
of the Cincinnati, Indianapolis
Western division. A similar movement
developed when the interest was las'
aefaultcd on these securities, Whlch
resulted in its payment. 1t was con-
tended that the bonds are amply Sc
cured and there is no reason why tne
coupons should not be paid at THIS
time.
Receivers Of the Chicago e. Eastern
/ Illinois. a Frisco subsidiary, announced
/ Yesterday that they had no funds with
which TO meet the $6,000,00O receivers
/ certificates due. In lieu OF the prlh-
I cinal of their certificates holders were
| offered new one-year per cent certi-
ficates and a commission OF IL per
cent IA
Members of the Stock Exchange SAID
Yesterday that the number OF delauItS
OF July interest was the largest IN thelr
memory. In addition to the Clhclh-
natl. Hamilton & Dayton defaults no
interest was paid on the United states
Of Mexico per cent consolldaleG eA-
terral loan of 1899; Chicago Indiana
Coal Railway first mortgage 9s' Ohi
caco G. Eastern Illinois refundlng ana
innroyemont As: Evansville e. Indian
apolis first consolidated mortgage oSs,
and st Louis e. San Francisco refund
ING mortgage As. The committee on
securities ruled that the defaulted IS
sues should be dealt in fiat until fur
Their notice.
Cincinnati, July Tx Governor Jud,,
son Harmon has never been discharged
as a receiver Of the Cincinnati, Hamilton
& DAYTON. though the road has been
managed by its own officers since l9O9.
Mr.. Harmon said to-day: 81 was APP
pointed receiver on application OF
creditor. When turned the property
back. it was decided by the court that
| would not be discharged as receiver
until all the certificates issued by me
had been redeemed / understand there
is one small equipment still outstand-
ing. do not think likely that if any
court action were taken the property
would be turned back to me as re-
ceivcr.'
Morrison R. Waite. general solicitor
for the Cincinnati, Hamilton e. Day
ton, said he knew nothing OF any &C
ton being contemplated. He was IN
communication with Governor Harmon
this morning. 81 do not believe any