The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1916-11-20

~ 1870 49, - ~ GAAA s ~ 1919 6 40
Natures laxative a body
building, strengthening
food. Serve with milk or
cream or baked apple or
other fruits. Made at
Niagara Falls. N. X
TEN and that part which can be oper-
ated to advantage as part Of the Bal
timore and Ohio system.
Net Investment.
1t is set forth that the ultimate
outcome OF the reorganization can
now be foreseen and reasonable esti-
mate made Of the value Of the assets
Ito accrue to the Baltimore and Ohio
is placed at approximately $35, 892,-
600, while it IS estimated that the
value Of the securities of the new
company which the Baltimore and
Ohio is to receive is $25.0O0.O0O.
Instead Of waiting until the COM
pletion OF the plan the company has
already restated this investment on
it's books, and has made charges to
profit and loss on this account Of $40
500, 900. being the difference between
the ultimate investment and the es-
stimated value of the securities to be
received under the plan.
The gross income for the year was
S34 83,439.22, an increase OF $4,
$50, 994.2T. Deductions from gross
income, in which are included rentals
paid for the use Of equipment and
property interest on funded and un-
funded debt. etc, show a net in
crease for the year OF S1,529.328.9
due principallySto a net increase of
sS1,600,399 in interest on funded
and unfunded debt. The increased
sue and sale, December %, 1915, Of.
$50, 000,000.00 refunding and gem
eral mortgage five per cent bonds,
due December 1, 1895, the proceeds
OF which We're applied, so far as
necessary, in the retirement at June
j, 1916, Of the conlpany's $40.000,-
100000 two and three year gold se-
cured four and one-half per cent.
notes, dated June /, 1915.
Net Income.
The net income for the year
amounted to S1S,692,446.67, an in
crease of So, 911.565.34 over the pre-
ceding year. out of which dividends
at the rate OF four per cent per an
ID ts4
were paid on the preferred stock of
the company After deducting this
amount and sundry appropriations
for sinking and other reserve funds.
the balance transferred to profit and
loss was S11 ,261, 68S.82.
The amount to the credit Of profit
and loss at the beginning of the
fiscal year was $32,575, 1881. which
amount was increased to S43,ST5,-
.202.73 by the addition Of the sur
plus income earned during the year
as shown above. Dividends at the
rate Of five per cent per annum,
amounting to $7,597,225.47, were
declared on the common stock OF the
company and charged to profit and
loss, and there was also charged
the further net amount of Sis, $685.
391.33 included in which is $1,922,-
.T4O.45 for discount and expenses on
obligations disposed of during the
same period and s.1O.892, 323.23, the
difference between the ultimate net
Investment of the company In the
Cincinnati. Hamilton and Dayton
railway, and what is be lieyed to be
a conservative estimate OF the value
#of the securities of the new company,
which the Baltimore and Ohio is to
receive for its participation in the
plan of reorganization. The balance
to the credit OF profit and loss at the
close Of the yearEwas $50, 606,5S5.93.
In respect to the new refunding
and general mortgage. executed De-
.cember 4, 1915. and of which Series
"a" amounting to S60.000,O00 five
per cent bonds We're sold last Decem-
Der, the report states that the mort
gage provides &. comprehensive basis
for future financial requirements and
for refunding its funded debt. inc1ud-
ing subsidiary companies, and it is
destined to ultimately become a first
and only mortgage lien upon the
property. After reseryfng bonds to
refund the present Indebtedness, In
Guiding the convertible gold bonds
outstanding. there remains to be is
sued under the terms Of the mortgage
Cor construction. betterments. im-
proyements, equipment and addition
al property over S180,000,00O.
No Notes Outstanding.
Neither the Baltimore and Ohio
nor any of its subsidiaries has any
notes or bills outstanding, and in
addition to the reserve under the re
funding and general mortgage there
is available in the treasury stocks
and bonds OF its own issue par value
$3.6S2,000 and stocks and bonds OF
other companies which are carried
on the books at S22,000,000, but
have 4 market value of more than
Isl 5, 900 900 in excess Of that sum.
Liberal expenditures on account Of
maintenance brought the property UP
to high state OF efficiency which
was largely contributed to by the
Improvements and betterments made
during recent years. Indicative OF
this, the average revenue freight
train load was brought to 760.67
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