Net loss carried to corporate deficit account.. 62,459.81 48,649.59 $3,168,936.78 74,532.21 NOTE-AS additional property has been put into operation, bond interest has been applied against income, as follows: 1 The following income statements and balance sheets for the year previous to and the first ten months subsequent to the readjustment were copied from the application for listing on the New York Stock Exchange the new securities referred to in the Readjustment Agreement above. 1,000.00 Cash deposited with trustees of N. Y. & J. Mortgage. Current cash on hand and in bank.......... 114,099.14 334,058.23 Common Capital Stock and Scrip.. Preferred Capital Stock and Scrip. Stocks and Scrip to redeem outstanding securities of predecessor companies... New York & Jersey Railroad Co. First Mortgage 5% bonds, Hudson & Manhattan Railroad Co. First Mort- Less Treasury bonds deposited as collateral.... Real estate mortgages payable..... $60,000,000.00 7,500,000.00 $67,500,000.00 Deferred installments on car purchase agreements. Accrued bond interest payable February 1st. Accrued taxes... Rentals received in advance. Amortization reserve.. Other reserves.. Total Liabilities.. $39,994,890.00 5,242,151.25 12,908.75 5,000,000.00 $67,148,000.00 652,000.00 1,376,000.00 250,000.00 151,068.94 1,226,492.37 30,025.00 517,170.22 17,513.66 512,794.14 33,754.88 $122,164,769.21 CONDENSED Statement of INCOME, TEN MONTHS ENDED NOVEMBER 30, 1913 Gross revenue from all sources.. Gross income applicable to fixed charges... 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 $4,535,389.38 2,091,930.93 $2,443,458.45 221,110.07 $2,222,348.38 1,680,960.56 +$541,387.82 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. 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... 33,102,000.00 Real estate mortgages... 1,207,500.00 Car purchase obligations payable in semi-annual instalments to 1921... 1,192,000.00 Readjustment reserve... 613,422.52 Surplus income for distribution as interest on adjustment Income 1,046,373.11 265,317.14 $125,183,196.43 *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 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 Reprinted in the so-called Congressional Money Trust Investigation Report of the Pujo Committee. |