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sions of section 210 of the transportation act, 1920, as amended, pursuant to our certificate No. 58, in Loan to Buffalo, Rochester & Pittsburgh Ry., 65 I. C. C. 530; payment of four notes, dated August 1, 1923, for the aggregate face amount of $1,000,000, each for $250,000, payable on demand within two years after date, with interest at the rate of 51/2 per cent per annum; and the remainder of the proceeds to be retained in the applicant's treasury for its general uses and purposes.

It is proposed to sell the bonds to Dillon, Read & Company, of New York City, at 85 per cent of par and accrued interest. Upon that basis the cost of the proceeds to the applicant will be approximately 512 per cent per annum.

We find that the proposed sale of bonds by the applicant as aforesaid (a) is 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) is reasonably necessary and appropriate for such purposes.

An appropriate order will be entered.

COMMISSIONER MEYER did not participate in the disposition of this

case.

ORDER

Entered August 27, 1924

Investigation of the matters and things involved in this proceeding have 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 Buffalo, Rochester & Pittsburgh Railway Company be, and it is hereby, authorized to sell not exceeding $3,000,000, principal amount, of its consolidated-mortgage 412 per cent bonds now held in its treasury, at not less than 85 per cent of par and accrued interest.

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 July 22, 1924, 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.

FINANCE DOCKET No. 4108

BONDS OF ARCADE & ATTICA R. R.

Submitted August 4, 1924. Decided August 29, 1924

Authority granted to issue $72,000 of first-mortgage gold bonds, for the purposes

set forth in the report. John Knight for applicant.

REPORT OF THE COMMISSION
Division 4, COMMISSIONERS MEYER, EASTMAN, AND POTTER
By Division 4:

The Arcade & Attica Railroad Corporation, a common carrier by railroad engaged in interstate commerce, has duly applied for authority under section 20a of the interstate commerce act to issue $74,000 of first-mortgage gold bonds. No objection to the granting of the application has been presented to us.

By our order entered August 29, 1923, and by supplemental order entered October 13, 1923, in Bonds of Arcade & Attica R. R., 82 I. C. C., 193 and 434, we authorized the applicant to issue $35,000 of second-mortgage gold bonds for the purpose of reimbursing it for money expended for capital purposes. It is stated that those bonds have not been issued because a satisfactory sale could not be made. Accordingly the applicant proposes to cancel them, have the mortgage securing them released of record, and issue first-mortgage bonds instead.

It appears that under a mortgage dated July 5, 1917, the applicant had outstanding at the time of the filing of the application $39,000 of first-mortgage bonds, $15,000 of which were held by the Exchange National Bank, of Olean, N. Y., as collateral security for notes, $10,000 by M. F. and P. H. Quinn as collateral security for notes, and $14,000 by T. H. Quinn as owner. Since the filing of the application, however, it appears that $2,000 of the bonds held by T. H. Quinn have been paid, reducing the amount of outstanding first-mortgage bonds to $37,000. As the applicant requested authority to issue $39,000 of bonds in respect of the retirement of that amount of outstanding first-mortgage bonds, our order will cover the issue of $72,000 of bonds instead of $74,000.

It is stated that it is necessary for the applicant to sell $35,000 of bonds to provide funds for paying certain matured indebtedness. The applicant represents that it will be able to sell first-mortgage bonds at par, and has secured the consent of the holders of the outstanding first-mortgage bonds to exchange their bonds for those to be issued, on the basis of par for par. Upon receipt by the applicant of the now outstanding bonds, they will be canceled and the mortgage released of record.

The issue of $72,000 of bonds will be used for the following purposes: $15,000 to be pledged with the Exchange National Bank, of Olean, as collateral for secured notes in substitution for the $15,000 of first-mortgage bonds; $10,000 to be pledged with M. F. and P. H. Quinn as collateral for secured notes in substitution for a like amount of first-mortgage bonds; $12,000 to be delivered to T. H. Quinn for a like amount of first-mortgage bonds; and $35,000 to be sold at par and the proceeds applied in payment of matured indebtedness.

We find that the proposed issue of bonds by the applicant as aforesaid (a) is for lawful objects 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 purposes.

An appropriate order will be entered.
COMMISSIONER MEYER did not participate in the disposition of this

case.

ORDER

Entered August 29, 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 Arcade & Attica Railroad Corporation be, and it is hereby, authorized to issue not exceeding $72,000, principal amount, of first-mortgage gold bonds under and pursuant to, and to be secured by, a first mortgage to be dated as of the date of execution and to be made to the Olean Trust Company, of Olean, N. Y., trustee; said bonds to be dated as of the date of issue, to bear interest at the rate of 6 per cent per annum, payable semiannually, and to mature $2,000 annually on August 1 of each year; $15,000, principal

amount, of said bonds to be pledged with the Exchange National Bank, of Olean, as collateral to secure notes in substitution for a like amount of now outstanding first-mortgage bonds; $10,000, principal amount thereof, to be pledged with M. F. and P. H. Quinn as collateral to secure notes in substitution for a like amount of now outstanding first-mortgage bonds; $12,000, principal amount thereof, to be delivered to T. H. Quinn for a like amount of now outstanding first-mortgage bonds; and $35,000, principal amount, thereof to be sold at par and the proceeds applied in payment of certain matured indebtedness, all as set forth in the application and aforesaid report.

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 file with this commission, within 10 days after the execution of the proposed first mortgage, a certified copy thereof as executed.

It is further ordered, That the applicant shall report concerning the matters herein involved in conformity with the commission's order dated July 22, 1924, 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.

31563°—25-VOL 90 39

FINANCE DOCKET No. 4101 SECURITIES OF MARYLAND & DELAWARE COAST RY.

Submitted August 14, 1924. Decided August 22, 1924

Authority granted to issue (1) 17,500 shares of capital stock without nominal

or par value; said stock to be delivered to Jesse Rosenfeld in part payment for approximately 40 miles of railroad and other property formerly owned by the Maryland, Delaware & Virginia Railway Company; and (2) not exceeding $300,000 of first-mortgage 20-year sinking-fund 6 per cent gold bonds; said bonds to be sold at not less than 80 and accrued interest and the proceeds used to complete payment for said property, and for other purposes. Harry E. Karr for applicant.

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

The Maryland & Delaware Coast 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 17,500 shares of capital stock without nominal or par value and $300,000 of first-mortgage 20-year sinking-fund 6 per cent gold bonds, for the purpose of acquiring a part of the line of railroad and other properties formerly owned by the Maryland, Delaware & Virginia Railway Company, hereinafter called the Maryland Company, and for the purpose of rehabilitating the road, acquiring equipment, working capital, etc. No objection to the granting of the application has been presented to us.

The line of the Maryland Company extended from Love Point, Md., through Queenstown, Hillsboro, and Denton, Md., and Ellendale and Milton, Del., to Lewes, Del., a distance of approximately 72 miles; also from Queenstown northeasterly to Centreville, Md., a distance of approximately 5.5 miles. Certain property used in the service of water-line transportation, including a ferry operated between Love Point and Baltimore, Md., was owned by the Maryland Company. A through route from Baltimore to the Atlantic Coast was operated by the Maryland Company by means of the ferry and railroad owned by it, and a line extending from Lewes to Rehoboth, Del., used under trackage rights.

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