Show RECEIVER GETS GOULD RAILWAY Western Maryland Unable to toI I Meet Its Obligations April 1 STATEMENT OF PRESIDENT COMMODITY CLAUSE OF RATE BILL HASTENED TROUBLE Baltimore Ballimore March 5 After the close of court today a bill bUl was filed in the United States circuit court by th Bowling Green Trust company compan of New NewYork NewYork NewYork York asking the appointment a of re receivers receivers for the ithe Western Maryland rail railroad railroad railroad road Judge Thomas J Morris appoint appointed ed President Benjamin F Bush the th having filed an n answer ad admitting admitting admitting the allegations in the bill of complaint and assenting to the re receivership reo The of the Bowling Bowline Green Trust company is that the Western Vestern Maryland will ivill be unable to meet fixed charges duo due April 1 I amounting to President Bush gave gae bond as a re receiver receiver ip 11 Mr Ir Bush succeed succeeded ed Winslow Vin low S Pierce as president of the road about a year ago Proceedings a Surprise The proceedings came as a surprise not the slightest intimation that they would be taken having reached fin financial financial ancial nuclei nor legal circles during the day The Western estern Maryland lIa land was purchased ed in 1902 by what was known as the th Fuller syndicate acting for the Gould interest The Tim price paid was At that time the road was indebted to Baltimore city on account t of mort mortgages mortgages mortgages gages and 2nd accrued interest to the ex extent extent extent tent of At the time of its Us purchase the road ran ron from Baltimore to Cherry Run about sixty miles from Cumberland Cumb rland At Cherry Run it con connected connecter connected necter with the Baltimore Ohio rail rali railroad railroad road Since that time the Western Vestern Maryland a land had haJ hen been extended to Cum Cumberland Cumberland Cumberland berland to connect at that point I the Vest West Virginia Central railroad previously acquired by hy the Gould in interests interests interests thus tapping very rich coal ter territory territory territory There has also been built n a aline t line about six miles long from the th northwestern suburbs of this city to Port Co Ington on the Patapsco river thus bringing the tue Western Maryland to tidewater It was announced that the Western Maryland was to be the eastern end of a great tran u m of h aba a other Gould lines were re to form parts UNABLE TO MEET LOANS Application for Receiver Followed Statement of President New York March 5 The application for a receiver for the Western Vestern Mary Maryland lIa Maryland land railroad followed a meeting of the th board of directors held h here yesterday at h a communication from fr m President President President dent TJ TI F flush Bush was read l ad reciting the financial needs of the company indicating that it will be unable to meet loans due on April 1 next and call callIng calling callIng Ing attention to the commodity clause of the tho rate bill effective May 1 I which makes it unlawful for any railroad company to transport as interstate traffic any commodity or product in which it may have any interest Statement of President Bush President Bush in his statement re regarding regarding regarding garding this law says saYi The general lien and convertible mortgage of the company is in greater degree than the stock vitally interest interested ed in the preservation of the coal rev revenues revenues revenues of the company from the ad adverse adverse adverse verse conditions of the commodity clause of the rate bill The coal properties of this company arc are a material part of the security for forthe forthe forthe the mortgages and the rev eues eQues from its coal business can cnn not no nobe be sacrificed or seriously diminished without materially affecting its income inc mc to its Ils junior securities The law cm CD not be generally observed In Inthe inthe inthe the extreme construction of which it U itis Js is susceptible without either the whole wholesale wholesale wholesale sale marketing of coal lands tic ble except at appalling loss to pro proprietary proprietary and mortgage Interests or a restriction of production to the fuel requirements of the road entailing vast loss of revenue to them and inevitable ble exactions from the public Law Cannot Be Ignored I think it must be clear that the law can not be ignored until it has hac ha been declared invalid by the courts coutts that it can not safely be be treated as inapplicable ble except with the sanction of the court and that if valid the re relations relations relations lations of the Ule company to Its coal in interests interests interests can not be safely and conclusively conclusIvely ively ivel remodeled except with the approval val vat of the courts lOr I recommend that the trustee of th general lien Men and convertible mortgage be apprised of the situation and the considerations here stated The general Continued on Page 3 RECEIVER GETS GOULD RAILWAY Continued from Page 4 lien and convertible mortgage by its terms contemplates surrender of pos possession possession possession session tc to the trustee in any contin contingency contingency contingency gency making this action just or do de desirable In the Judgment of ot the com coni company compan pany pan panya a Will Ask Instructions For the reasons r Stated it appears that such a contingency ency as here hers con contemplated contemplated contemplated exists The company should acquiesce In lu the appointment of or a re receiver receiver receiver under any proceeding pro which may be instituted by b the trustee to protect and enforce its ito security Under r such proceedings it Is prop properly properly properly erly to be assumed a that the receiver will apply to the court for f r instructions as to the course which shall be taken in the protection of the coal business and an revenues of the company as affect affected ed cd by the law above referred to The directors f approved the tha and the proceedings for a 1 receiver by the Bowling Green Trust company the trustee of the general lien Hen an convertible mortgage followed today |