CONDENSED STATEMENT OF INCOME, TEN MONTHS ENDED NOVEMBER 30, 1913 Gross revenue from all sources.. *Operating expenses and taxes.. Gross income applicable to fixed charges.. Income deductions other than bond interest. Net income applicable to bond interest.. Deduct interest on bonds prior to adjustment income bonds Balance of net income for the period, available for interest on Includes $276,070.68, the first installment of interest, at $8.34 per $1,000, earned during five months prior to July 1, 1913, declared August 21, 1913, paid September 30, 1913, leaving $265,317.14 available for distribution. CONDENSED BALANCE SHEET AS OF NOVEMBER 30, 1913. Assets Property accounts. Less reserve for amortization.. $120,216,679.99 $119,579,597.79 1,000.00 Investment (Tunnel Advertising Co. stock).... Proceeds of sales of property released from the lien of New York & Jersey Railroad Company mortgage deposited with trustee of the mortgage. Amortization funds, deposited or invested.. *Bond discount and expense in process of amortization.. 114,099.14 169,108.33 3,659,711.09 Liabilities and Capital Common capital stock and scrip.. $39,994,890.00 Preferred capital stock and scrip.. 5,242,151.25 Stocks held in reserve to redeem outstanding securities of prede cessor companies... 12,908.75 New York & Jersey Railroad Company 5% Mortgage Bonds... 5,000,000.00 944,000.00 First Lien and Refunding Mortgage 5% Bonds.. 36,562,633.66 Adjustment Income Mortgage Bonds.. Real estate mortgages.. 33,102,000.00 1,207,500.00 Car purchase obligations payable in semi-annual instalments to 1921. 1,192,000.00 *Charged off monthly to eliminate debt during the life of bond. The balance of the issue of old 42% bonds ($66,204,000) has been deposited with the trustees of the new first lien and refunding mortgage and the adjustment income mortgage in accordance with the terms thereof. REORGANIZATION OF THE BALTIMORE AND OHIO RAILROAD COMPANY 1 1 PLAN AND AGREEMENT [Dated June 22, 1908.] Reorganization Committee-Louis Fitzgerald, chairman, August Belmont, Edward R. Bacon, Henry Budge, Eugene Delano, William A. Read, Howland Davis. H. C. Deming, secretary. William C. Gulliver, counsel to Reorganization Committee. Reorganization Managers-Speyer Bros., 7 Lothbury, London. Speyer & Co., 30 Broad Street, New York. Kuhn, Loeb & Co., 27 Pine Street, New York. Counsel to Reorganization Managers-Seward, Guthrie & Steele, 40 Wall Street, New York. Evarts, Choate & Beaman, 52 Wall Street, New York. Freshfields & Williams, London. Advisory Committee-Louis Fitzgerald, Edward R. Bacon, Henry Budge, William A Read. Alvin W. Krech, secretary, 120 Broadway, New York. William C. Gulliver, counsel to Advisory Committee. Depositary-The Mercantile Trust Co., of New York. London and Westminster Bank, Limited, London agent. The undersigned committee, at the request of holders of a large amount of the securities, has been for a long time past engaged in an examination of the affairs of the Baltimore & Ohio system and the relative value and earning capacity of the various lines comprised therein, with a view to formulating a plan of reorganization therefor which should fairly recognize the rights of all security holders, and at the same time bring the fixed charges of the reorganized company safely within the net earning capacity of the system. Much time and attention have been devoted to acquiring full and accurate information as to all details, including a careful examination of the company's accounts for the period of nine years and six months, made by Mr. Stephen Little on behalf of the committee. The aim of the committee has been to formulate a plan for the reorganization of the system which should accomplish the following results: (a) The reduction of the fixed charges to a limit safely within the net earning capacity of the reorganized properties; (b) adequate capital for present and future requirements; (c) the payment of floating debt and provision for existing car-trust obligations; (d) the preservation of the integrity of the system as far as the same can be econ 1 Reprinted in the so-called Congressional Money Trust Investigation Report of the Pujo Committee. omically and advantageously accomplished and such control of the reorganized company as shall secure a satisfactory management of the property for a period of years. Having these objects in view, the annexed plan has been prepared, and Messrs Speyer & Co. and Messrs Kuhn, Loeb & Co., of New York, and Messrs. Speyer Bros., of London, have been selected by the committee to act as reorganization managers to carry out the plan. Messrs. Louis Fitzgerald, Henry Budge, Edward R. Bacon, and William A Read have been appointed an advisory committee to continue and complete the work of the Reorganization Committee and to consult and cooperate with the reorganization managers. Any vacancy in the Advisory Committee occasioned by death, resignation, or otherwise may be filled by the joint action of the reorganization managers and of the remaining members of the Advisory Committee. LOUIS FITZGERALD, EDWARD R. BACON, HENRY BUDGE, EUGENE DELANO, WILLIAM A. READ, HOWLAND DAVIS, Reorganization Comittee. New York, June 22, 1898. PLAN FOR THE REORGANIZATION OF THE BALTIMORE & OHIO RAILROAD CO. CONDITIONS OF PARTICIPATION Participation under this plan of reorganization in any respect whatsoever is dependent upon the deposit of securities with the Mercantile Trust Co., of New York, the depositary named in the reorganization agreement, either at its office, No. 120 Broadway, in the city of New York, or at the London & Westminster Bank (Ltd.), its agency in the city of London, England, within such time as may be fixed by notice, and the plan will embrace only securities so deposited. No securities will be received on deposit unless in negotiable form, and bonds must carry all coupons (or claims for interest on registered bonds) maturing on or after July 1, 1898. The first-mortgage 6 per cent. bonds of the Washington City & Point Lookout Railroad Co. must also carry all matured and unpaid coupons. Pursuant to the offer of the syndicate hereinafter stated, holders of the first and second preferred and common stock of the Baltimore & Ohio Railroad Co. may purchase from the syndicate the new preferred and common stock by depositing their old stock with the Mer cantile Trust Co. or its agency in London as above stated, on the following terms: As consideration for shares of the new company, depositors of first preferred stock must pay $2 per share deposited for new preferred and common stock; depositors of second preferred stock must pay $20 per share deposited for new preferred and common stock; and depositors of common stock must pay $20 per share deposited for new preferred and common stock, all as hereinafter indicated on page 978. The payments by depositors of such preferred and common stocks must be made for account of the syndicate at the office of the Mercantile Trust Co., in New York, or at its agency in London above named, in not less than three installments at least thirty (30) days apart, when and as called for by advertisement published in each instance at least twice a week for two weeks in at least two of the daily newspapers of general circulation published in the cities of New York, Baltimore and London, respectively. All payments must be receipted for by the depositary or its London agent on the certificates of deposit. Failure to pay any installment when and as payable will subject the deposited stock and all rights on account of any prior payments to forfeiture to the syndicate as provided in the reorganization agree ment. The depositary will issue proper receipts or certificates of deposit for all securities deposited. The following bonds, coupons, and stocks may be deposited on the terms hereinafter provided: Baltimore & Ohio Railroad Co. bonds, loan of 1853, extended to 1935 at 4 per cent. . Baltimore & Ohio Railroad Co. 100-year 5 per cent. consolidated mortgage bonds of 1888. Baltimore & Ohio Railroad Co. sterling 6 per cent. loan of 1872, due March 1, 1902. Baltimore & Ohio Railroad Co. sterling 6 per cent. loan of 1874, due May 1, 1910. Baltimore & Ohio Railroad Co. 6 per cent. loan of 1879, due April 1, 1919 (account Parkersburg Branch Railroad Co.). Baltimore & Ohio Railroad Co. 5 per cent. bonds, loan of 1885 (account Pittsburgh & Connellsville Railroad Co.). Baltimore & Ohio Railroad Co. 4 per cent. terminal mortgage bonds of 1894. Baltimore & Ohio Railroad Co. sterling 4 per cent. loan of 1883, Philadelphia Branch. |