The sun., 1916-10-30
WESTERN MARYLAND
VOTE SET FOR NOV. II
Stockholders Will Pass on
Plans for Financial Re-
adjustment.
TO CUT BONDED DEBT
New Company Will Acquire
All Terminal Facilities
in Baltimore.

Plans for the financial readjustment
OF the Western Maryland Railway will
he submitted to stockholders for ap-
prevail ut n meeting on November II.
The proposals include n new company
by consolidating the present Western
Maryland Railway Company with the
constituent companies, n new MORTGAGE
FOR $50. 900, 900 OF first and rcfunding
bonds. new issues Of first and second
preferred stocks totalling SOS. 900. 900 and
new COMMON stock of $4,000. 900. Far
Elephants In the readjustments will also
receive gratuitously proportionate
amounts OF stock In two coal and land
companies totalling $500. 900.
BY this financing Western Maryland
Railway will relieve itself OF the bur-
den OF the $780, 900. 900 OF notes in de-
fault since 1915 and on which about
81. 900. 900 In interest has accrued. and
also loans aggregating s3.250.OOO. Its
bonded Indebtedness will he reduced from
ST1,132. 600 to s55.177,O00 or, on n per
mile basis. from s1I2.32s to ss7.l33.
while interest charges will he reduced
from s3,19s,oSS annually to 1900 Ss
and. on n per mile basis, from s5.05O to
33.s33.
The new railway IL to ac-
Quire all OF the terminal facilities in
Baltimore. some Of which. including the
tai 4 III ~ the ltT-
minal Company. and the warehouse and
storage properties now owned by the
Baltimore Fidelity Warehouse Company
and the Hazard Wharf Company. The
new company will assume all of the pres
ent bonded Indebtedness and equipment
trust obligations OF the constituent COM
panies.
The securities TO be created include:
First and %refunding mortgage bonds Of
S150.0 00.0 900. subject to the first mortgage
OF the old Western Maryland and its un-
DERIVING mortgages and those Of the con-
etituent companies. amounting in all to
350.177. 900. The new bonds are to bear
interest at a rate not exceeding 6 per
cent. and they will be appropriated In
the following manner $500. 900 ct s
per cent. to be reserved. OF which s. .0O0,-
600 are TO be issued initially to liauidate
loanso OF s3.250. 900 and to provide work.
ing capital; $50. 900 900 to be reserved
for the funding of the present first mort
gage bonds and the underlying and divi-
sional bonds S25. 000.0 0 to be reserved
and issued to provide additional termi-
mails n terminal facilities: S67.5o0. 900
TO be reserved for new equipment. perma-
nent betterments and improvements and
the construction or acquisition Of addi-
tional mileage.
Other securities to be created are new
FIRST preferred stock Of SIS, 900. 900. emit
tied to cumulative interest at Z per cent.
beginning July 1. 1918 100000 Sec
ond preferred stock entitled to 4 per cent
non-cumulative interest, and $50. 000. zoe
common stock
Present holders Of the old preferred
and common stocks will be asked to ex-
change the same, share for share, for
second preferred or common stock. and
will receive an opportunity to subscribe
at par. in cash. for 80 per cent. of new
first preferred stock. Against such sub
scription they will receive also proper
tionate amounts Of stock Of the Davis
Coal and Coke Company and the Monon-
gahela Coal Lands Company, amounting
to s22 and s25 a share respectively.
This subscription will be underwritten
BY a syndicate which will take such OF
the securities as may not be purchased
by stockholders on the same terms Of
fered to the latter.
Carl r. Gray. president Of the West
ern Maryland Railway. in commenting
on this plan, states in part:
Through the elimination Of SIS. Ooo,-
600 Of enforceable debt. threatening the
integrity of the property. not only is the
fixed charge capitalization OF the COM
pany reduced to an amount believed II
be safely within its minimum earnins
results during adverse periods. but there
u also preserved a mortgage capacity
well adapted for use In connection with
the future expansion and development,
Of the system"