The sun., 1918-10-04
M'ADOO PRAISES
AMERICAN BANKERS
With Few Exceptions All Hs,,
Helped Bear Burden of War
Financing, lie Says.
CITES B. & O. NOTE CASE
Praises Kuhn, Loeb & Co. and
Speyer & Co. for Renewing
Paper Without Charge.
Special Despatch 10 TIE ST.:

wAsHINGToN, Oct. 3.-In compliment.
ing the two New York banks which made
possible the renewal without increased
charges of so per cent. OF the s2?5Oo.
600 short time collateral notes OF IN,
Baltimore and Ohio Railroad. which feN
due October I, Director General McAdoo
took occasion to sing the praises OF the
bankers OF the country generally. In
though without naming them. Only
few weeks ago there was default on
Chicago and Western Indiana notes 70
which John SHELTON Williams saTfft =
take ]. =. Morgan a co. TO task,
Thought the firms making possible tac
renewal in bulk o. the Baltimore A..
Ohio notes were not mentioned l. !.
readily assumed that Mr.. Mc.Adoo mean
Kuhn, Loeb q Go. and Speyer x Co. a,
these firms handled most of tine renewa,s
In expressing his appreciation Q: m,
public spirit and patriotism OF bankers
generally the Direstor-General said!
'sAiy duties as Secretary of the Treas
ury and Dlrector-General of Railroad.
involving as they do the raising Of eno--
nous sums of money. have been grestly
lightened by the reliance I have come TO
feel upon the wholesome public spirit o.
the American banking fraternity.
with but few exceptions they hay.
shown themselves willing and eager 10
help in distributing the financial Ourdsr
of the war that is now being carried
with an ease that surprised the world
"They have helped 10 educate ~
financial community TO broader vision
and to widen the field OF Investment
in this country and in so doing har'
been themselves benefited, for fron
being American bankers they have be
come world bankers with all the dude
and opportunities that description I'm
plies"
This comment was evoked by the To-
lowing public announcement RESPECTING
the Baltimore and Ohio notes prepare
by John Shelton Williams Of N.
division of finance and purchase OF III
Railroad Administration:
This office was advised a short TIM
ago that the Baltimore and Ohio Raj
road had $22.50O.O00 short time Co
lateral notes maturing October l; tha
the railroad had made inquiries as {"
the prospect for renewal as d result Q
which authority was requested 10 ar
range for a four months extension on
an interest basis Of "a, per cent, !nc.ud
ing bankers commission.
"In reply the company was informed
that market conditions did mo-. IN ths
opinion of tho Director-General 'ustif"
the rate asked and that in agreeing to
1t he would be lending his approval :.
an interest charge which he considered
unwarranted in the present conditions
rta t-in 80 md
chase thereupon telegraphed a number
OF banks who were understood TO ts
holders of the maturing Baltimore and
Ohio notes asking whether they would
be willing under the circumstances 70
accept n renewal at & per cent per ar
mum. With but two or three eXcr-
tons these bankers responded promptly
agreeing to renew at per cent. CpoI
receipt Of these replies the Baltimore
and Ohio Railroad was notified That Tn
holders of approximately Sll,0O10O0 o
the notes had readily agreed TO the dt
sired extension and II was suggested
that the railroad Should commun"s"
with the remaining holders and asee-.
tain their attitude in the matter VIII
the understanding that the Railroad al
ministra ton would furnish the Bait.
more and Ohio Railroad with any money
that might be required to pay OF thA
holders who refused TO extend their
notes at per cent. per annum.
LAS a result the Baltimore and ONO
Railroad has Just been able to inform
tho Director-General that the holders q
about so per cent. Of the outstand!H9
notes have agreed TO an extension AZ
per cent per annum so that the GOV
eminent will be called upon t. supply
only about 100000 out of the SO,
100000"
The Director OF the D.v.s.""
Finance and Purchases adds that ''.'
success Of the railroad in enc I'll ) TO
extension thus secured was very lars''l
due TO the public spirited co"0'rat'o'
OF the bankers through whom taosc N't''
were originally placed. They charge
no commission for their services Il. IL
matter and their assistance ana coop
GRAFTON are much appreciate