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FINANCE DOCKET No. 4091
NOTES AND BONDS OF TEXAS & PACIFIC RY.

Submitted July 2, 1924. Decided July 5, 1924

Authority granted to issue a note or notes for $4,400,000 payable to the order of

the director general and to pledge as security therefor $5,500,000 of general and refunding mortgage bonds, series A. Thomas J. Freeman for applicant.

REPORT OF THE COMMISSION
DIVISION 4, COMMISSIONERS MEYER, EASTMAN, AND POTTER
BY DIVISION 4:

The Texas & Pacific Railway Company, a common carrier by railroad engaged in interstate commerce, has duly applied for authority under section 20a of the interstate commerce act to issue a note or notes for $4,400,000 payable to the order of the Director General of Railroads in respect of the funding of additions and betterments made during Federal control under the provisions of section 207 of the transportation act, 1920, and to pledge not exceeding $5,500,000 of general and refunding mortgage bonds, series A, as security for the note or notes. No objection to the granting of the application has been presented to us.

It appears from the record in Texas & Pacific Readjustment, 86 I. C. C. 808, that the issue of the notes and the pledge of bonds to secure them is in accord with the plan of readjustment of the applicant dated November 26, 1923. It is therein stated that arrangements have been made to fund $4,400,000 of expenditures made during Federal control through the issue of notes to the director general in that amount, against which there would be received by the Texas & Pacific as an offset in final adjustment $3,000,000 in cash.

The proposed note or notes will mature March 1, 1930, and bear interest at the rate of 6 per cent per annum. The general and refunding mortgage bonds, series A, which will be pledged to secure them, will mature January 1, 1939, and bear interest at the rate of 6 per cent per annum. They will be issued under and pursuant to, and secured by, the applicant's general and refunding mortgage dated January 1, 1924. The pledge of the bonds will be accomplished by the execution of a collateral agreement.

We find that the proposed issue of a note or notes and the pledge of bonds as security therefor by the applicant as aforesaid (a) are for lawful objects within its corporate purposes, and compatible with the public interest, which are necessary and appropriate for and consistent with the proper performance by it of service to the public as a common carrier, and which will not impair its ability to perform that service, and (b) are reasonably necessary and appropriate for such purposes.

An appropriate order will be entered.

ORDER

Entered July 5, 1924 Investigation of the matters and things involved in this proceeding having been had, and said division having, on the date hereof, made and filed a report containing its findings of fact and conclusions thereon, which report is hereby referred to and made a part hereof:

It is ordered, That, for the purposes set forth in the application and aforesaid report, the Texas & Pacific Railway Company be, and it is hereby, authorized (1) to issue a note or notes in an aggregate face amount not exceeding $4,400,000 payable to the order of the Director General of Railroads; said note or notes to mature March 1, 1930, and to bear interest at the rate of 6 per cent per annum; and (2) to pledge not exceeding $5,500,000, principal amount, of its general and refunding mortgage bonds, series A, as security for said note or notes; said bonds to mature January 1, 1939, to bear interest at the rate of 6 per cent per annum, and to be issued under and pursuant to, and to be secured by, the applicant's general and refunding mortgage dated January 1, 1924.

It is further ordered, That, except as herein authorized, said note or notes and said bonds shall not be sold, pledged, repledged, or otherwise disposed of by the applicant, unless and until so ordered by this commission.

It is further ordered, That the applicant shall report concerning the matters herein involved in conformity with the commission's order dated May 25, 1922, respecting applications filed under section 20a of the interstate commerce act.

And it is further ordered, That nothing herein shall be construed to imply any guaranty or obligation as to said note or notes and said bonds, or interest thereon, on the part of the United States.

90 I. C. C.

FINANCE DOCKET No. 4127
BONDS OF LEHIGH & NEW ENGLAND R. R.

Submitted June 28, 1924. Decided July 9, 1924

Authority granted to issue $2,000,000 of general-mortgage gold bonds, series B,

to be sold from time to time, to December 31, 1924, at not less than par and accrued interest and the proceeds used for applicant's lawful corporate purposes. William Jay Turner for applicant.

REPORT OF THE COMMISSION
DIVISION 4, COMMISSIONERS MEYER, EASTMAN, AND POTTER
BY DIVISION 4:

The Lehigh & New England Railroad Company, a common carrier by railroad engaged in interstate commerce, has duly applied for authority under section 20a of the interstate commerce act to issue $2,000,000 of general-mortgage gold bonds, series B. No objection to the granting of the application has been presented to us.

The applicant expended between March 1, 1917, and March 31, 1924, a net sum of $2,074,334.89 for additions and betterments, the particulars of which are filed with the application. To reimburse it in part for such expenditures the applicant proposes to issue $2,000,000 of its general-mortgage gold bonds.

The proposed bonds will be issued pursuant to the general mortgage dated July 1, 1914, made by the applicant to the Guaranty Trust & Safe Deposit Company, of Philadelphia, Pa. They will be dated July 1, 1914, will be in the denomination of $1,000, payable to bearer and registrable as to principal, and at applicant's option will be redeemable on any interest date at 105 and accrued interest, will bear interest at the rate of 5 per cent per annum, payable semiannually, and will mature July 1, 1954.

The applicant has arranged to sell presently $1,250,000 of such bonds direct to certain private purchasers at par and accrued interest. Our order will provide for the sale of all the proposed issue at the foregoing price.

We find that the proposed issue of bonds by the applicant as aforesaid (a) is for a lawful object within its corporate purposes, and compatible with the public interest, which is necessary and appropriate for and consistent with the proper performance by it of service to the public as a common carrier, and which will not impair its ability to perform that service, and (6) is reasonably necessary and appropriate for such purpose.

An appropriate order will be entered.

ORDER

Entered July 9, 1924

Investigation of the matters and things involved in this proceeding having been had, and said division having, on the date hereof, made and filed a report containing its findings of fact and conclusions thereon, which report is hereby referred to and made a part hereof:

It is ordered, That the Lehigh & New England Railroad Company be, and it is hereby, authorized to issue not exceeding $2,000,000 of its general-mortgage gold bonds, series B, under and pursuant to, and to be secured by, the general mortgage dated July 1, 1914, made by it to the Guaranty Trust & Safe Deposit Company, of Philadelphia, Pa.; said bonds to be dated July 1, 1914, to be in the denomination, form, and redeemable as set forth in the application and the aforesaid report, to bear interest at the rate of 5 per cent per annum, payable semiannually, and to mature July 1, 1954; all or any part of said bonds to be sold, from time to time, to and including December 31, 1924, at not less than par and accrued interest and the proceeds used for applicant's lawful corporate purposes.

It is further ordered, That, except as herein authorized, said bonds shall not be sold, pledged, repledged, or otherwise disposed of by the applicant, unless and until so ordered by this commission.

It is further ordered, That the applicant shall report concerning the matters herein involved in conformity with the commission's order dated May 25, 1922, respecting applications filed under section 20a of the interstate commerce act.

And it is further ordered, That nothing herein shall be construed to imply any guaranty or obligation as to said bonds, or interest thereon, on the part of the United States.

90 I. C. C.

FINANCE DOCKET No. 4132

CHESAPEAKE & OHIO EQUIPMENT TRUST, SERIES V

Submitted June 24, 1924. Decided July 5, 1924

Authority granted to assume obligation and liability in respect of $18,000,000

of Chesapeake & Ohio equipment-trust certificates, series V, to be issued by the Guaranty Trust Company of New York under an agreement to be dated July 1, 1924, and to be sold at not less than 98 and accrued dividends in connection with the procurement of certain equipment. A. C. Rearick for applicant.

REPORT OF THE COMMISSION
DIVISION 4, COMMISSIONERS MEYER, EASTMAN, AND POTTER
BY DIVISION 4:

The Chesapeake & Ohio Railway Company, a common carrier by railroad engaged in interstate commerce, has duly applied for authority under section 20a of the interstate commerce act to assume obligation and liability in respect of $18,000,000 of Chesa peake & Ohio equipment-trust certificates, series V, by entering into an equipment-trust agreement under which the certificates will be issued and into a lease of certain equipment to be purchased. No objection to the granting of the application has been presented to us.

The applicant represents that it is in need of additional equipment and in order to meet its needs it proposes to procure the following:

[graphic]

H. F. Lohmeyer and H. C. Strong will procure the foregoing equipment from the builders and enter into an agreement with the Guaranty Trust Company of New York, as trustee, and the appli

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