Interstate Commerce Commission Reports

In authorizing the procurement of authentication and delivery of bonds, the
Commission in no way commits itself to approving a later application to sell or
pledge the bonds, for under sec. 20a such approval can be given only after appli-
cation has been made and the Commission has investigated as to the uses and
purposes of the proposed issue and the proceeds thereof. Id. (312).

Bonds issued prior to the effective date of sec. 20a and subsequently reacquired
and held alive will be considered as part of the funded debt of a carrier on the
ground that they will become outstanding whenever disposition of them may
occur. Chicago & W. I. R. Co. Bonds, 565 (568).

Individual Applications: Authorizations to issue, etc.: Alabama Great
Southern R. Co., authentication and delivery of first consolidated mortgage
bonds, series A, in partial reimbursement for capital expenditures, granted.
Alabama G. S. R. Co. Bonds, 743.

Albright & Bruceton R. Co., application for authority to issue first-mortgage
bonds, denied inasmuch as application for authority to construct a line of railroad
is denied. Albright & B. R. Co. Construction, 74.

Baltimore & Ohio R. Co.: To nominally issue refunding and general mortgage
bonds, series E, granted. Baltimore & O. R. Co. Bonds, 157; To issue (1) refund-
ing and general mortgage bonds, series C, and (2) refunding-mortgage bonds of
Pittsburgh, Lake Erie & West Virginia system, granted. Baltimore & O. R. Co.
Securities, 392; 543.

Baltimore & Ohio R. Co. in Pennsylvania, improvement-mortgage bonds to be
delivered, at par, to the Baltimore & O. R. Co., in reimbursement of an equal
amount of advances for additions and betterments and for deposit under the
refunding and general mortgage, or other appropriate mortgage of that carrier,
granted. Baltimore & O. R. Co. Bonds, 157.

California-Western R. & Nav. Co., first-mortgage bonds, granted. California-
W. R. & Nav. Co. Bonds, 535.

Central Pacific Ry. Co.: First refunding mortgage bonds to be delivered to the
Southern Pac. Co. in reimbursement of advances, granted. Central Pac. Ry. Co.
Bonds, 161; Through Short Line first-mortgage bonds to be delivered to the South-
ern Pac. Co., at par, in part payment for advances, granted. Central Pac. Ry.
Co. Bonds, 248.

Charleston & Western Carolina R. Co., to procure authentication and delivery
of first consolidated mortgage 50-year bonds, series B, in reimbursement for
capital expenditures; said bonds to be held until further order of the Commission
granted. Charleston & W. C. Ry. Co. Bonds, 309.

Chicago & North Western Ry. Co., upon surrender of 4%1⁄2 percent general-
mortgage bonds of 1987, authority to issue 5 percent general-mortgage bonds of
1987, granted. Chicago & N. W. Ry. Co. Securities, 448.

Chicago & Western Indiana R. Co., first and refunding mortgage bonds, series
C, to be delivered to proprietary tenants and held by them until further order of
the Commission, granted. Chicago & W. I. R. Co. Bonds, 565.

Chicago, Indianapolis & Louisville Ry. Co., upon argument and reconsidera-
tion, previous report, 189 I. C. C. 752, denying application for authority to pro-
cure authentication and delivery of first and general mortgage bonds, series B,
affirmed. Chicago, I. & L. Ry. Co. Bonds, 553.

Chicago, Milwaukee, St. Paul & Pacific R. Co., authentication and delivery of
first and refunding mortgage bonds, series A, in reimbursement of capital pur-
poses, granted. Chicago, M., St. P. & P. R. Co. Bonds, 725.

Chicago, St. Paul, Minneapolis & Omaha Ry. Co., first-mortgage bonds, series
A and B, to be delivered to the Chicago & N. W. Ry. Co., at par, in reimburse-
ment of a like amount of advances for additions and betterments, granted.
Previous report, 189 I. C. C. 554. Chicago, St. P., M. & O. Ry. Co. Bonds, 93.

Confluence & Oakland R. Co., refunding and general mortgage bonds to be
delivered to the Baltimore & O. R. Co., in reimbursement of an equal amount of
advances for additions and betterments and for deposit under the refunding
and general mortgage, or other appropriate mortgage of that carrier, granted.
Baltimore & O. R. Co. Bonds, 157.

Erie R. Co., refunding and improvement mortgage bonds, series of 1932,
reimbursement of capital expenditures, granted. Erie R. Co. Bonds, 35.

Great Northern Ry. Co., to procure authentication and delivery of general-
mortgage bonds, series F, in partial reimbursement of capital expenditures,
granted. Great Northern Ry. Co. Bonds, 115.

Morristown & Erie R. Co., first-mortgage 10-year bonds, part to be sold and
proceeds used to pay promissory notes, granted. Morristown & E. R. Co.
Bonds, 673.

New Orleans Great Northern Ry. Co., first-mortgage 50-year bonds, series A,
in connection with the reorganization of the New Orleans G. N. Ry. Co., granted.
New Orleans G. N. Ry. Co. Acquisition and Securities, 349.

Pere Marquette Ry. Co., to procure authentication and delivery of first-mort-
gage bonds, series C, in reimbursement of capital expenditures, granted. Pere
Marquette Ry. Co. Bonds, 203.

Philadelphia, Baltimore & Washington R. Co., general-mortgage bonds, series
D, to be delivered to the Pennsylvania R. Co. in reimbursement of advances for
capital expenditures and in retirement of underlying bonds, granted. Philadel-
phia, B. & W. R. Co. Bonds, 101.

Pittsburgh & Western R. Co., refunding and general mortgage bonds to be
delivered to the Baltimore & O. R. Co., in reimbursement of an equal amount of
advances for additions and betterments and for deposit under the refunding and
general mortgage, or other appropriate mortgage of that carrier, granted.
more & O. R. Co. Bonds, 157.

Balti-

Western Maryland Ry. Co., first and refunding mortgage 52 percent bonds,
series A, in lieu of a like amount of first and refunding mortgage 5 percent, series
A, bonds, granted. Previous report, 175 I. C. C. 168. Western Maryland Ry.
Co. Bonds, 37.

Yazoo & Mississippi Valley R. Co., improvement bonds, series A, to be deliv-
ered to the Illinois Central R. Co., in satisfaction of a like amount of advances
for corporate purposes, granted. Yazoo & M. V. R. Co. Bonds, 51.

DEBENTURES: Individual Applications: New Orleans Great Northern Ry.
Co., authority to issue income debentures in connection with the reorganization
of the New Orleans G. N. R. Co., granted upon conditions. New Orleans G. N.
Ry. Co. Acquisition and Securities, 349.

EXCHANGE: Individual Applications: Authorizations to exchange: Califor-
nia-Western R. & Nav. Co., first-mortgage bonds for a like amount of outstanding
bonds, granted. California-W. R. & Nav. Co. Bonds, 535.

Chicago & Illinois Western R., equipment-trust certificates for a like amount
of equipment-trust certificates, granted. Chicago & I. W. R. Equipment-Trust
Certificates, 755.

Chicago & North Western Ry. Co., general-mortgage bonds of 1987, at par,
for Fremont, E. & M. V. R. Co., consolidated-mortgage bonds, granted. Chicago
& N. W. Ry. Co. Securities, 448.

Morristown & Erie R. Co., first-mortgage 10-year bonds part exchanged for
outstanding bonds or sold and the proceeds used to purchase bonds not exchanged,
granted. Morristown & E. R. Co. Bonds, 673.

Western Maryland Ry. Co., first and refunding mortgage 52 percent bonds,
series A, in lieu of a like amount of 5 percent bonds, granted. Previous report,
175 I. C. C. 168. Western Maryland Ry. Co. Bonds, 37.

EXTENSION OF MATURITY DATES. See MATURITIES AND RETIREMENTS under
this heading.

INTERIM CERTIFICATES: Individual Applications: Chicago & North West-
ern Ry. Co., authority granted to issue interim certificates in connection with the
retirement of consolidated-mortgage bonds of the Fremont, E. & M. V. R. Co.
Chicago & N. W. Ry. Co. Securities, 448.

MATURITIES AND RETIREMENTS: Individual Applications: Authorizations
to retire, etc.: Baltimore & Ohio R. Co., notes in part retirement of consolidated
first-mortgage bonds of the Cleveland, L. & W. Ry. Co., granted. Baltimore &
O. R. Co. Securities, 392.

Boston & Maine R., notes to retire outstanding notes, granted. Boston &
M. R. Notes, 331.

Chicago & North Western Ry. Co., interim certificates in connection with
retirement of consolidated-mortgage bonds of Fremont, E. & M. V. R. Co.,
granted. Chicago & N. W. Ry. Co. Securities, 448.

Chicago, Indianapolis & Louisville Ry. Co., renewal of notes, granted. Chicago
I. & L. Ry. Co. Notes, 123.

Delaware & Hudson R. Corp., promissory notes in renewal or substitution of
short-term notes, granted. Delaware & H. R. Corp. Notes, 741.

Great Northern Ry. Co., to extend consolidated-mortgage bonds of St. Paul,
M. & M. Ry. Co., from July 1, 1933 to July 1, 1943, granted. St. Paul, M. &
M. Ry. Co. Bonds, 200.

Louisiana & Arkansas Ry. Co., to renew or extend a secured promissory note,
granted. Previous reports, 166 I. C. C. 685, 175 I. C. C. 623. Louisiana &
A. Ry. Co. Securities, 747.

Louisiana Southern Ry. Co., extension of first-mortgage refunding bonds, from
September 1, 1931, to September 1, 1941, granted. Louisiana S. Ry. Co. Bonds,
515.

Middletown & Unionville R. Co., to extend first-mortgage and adjustment-
mortgage income bonds from November 1, 1933, to November 1, 1943, granted
upon conditions. Middletown & U. R. Co. Bonds, 588.

Minneapolis & St. Louis R. Co., receiver's certificates in renewal or extension
of a like amount of certificates, granted. Minneapolis & St. L. R. Co. Receiver's
Certificates, 305; 639.

Philadelphia, Baltimore & Washington R. Co., bonds in retirement of under-
lying bonds, granted. Philadelphia, B. & W. R. Co. Bonds, 101.

Reading Co., extension of prior-lien mortgage bonds of Philadelphia & R.R. Co.,
from October 1, 1933, to October 1, 1943, granted. Philadelphia & R.R. Co.
Bonds, 481.

St. Paul, Minneapolis & Manitoba Ry. Co., extension of consolidated-mortgage
bonds from July 1, 1933, to July 1, 1943, granted. St. Paul, M. & M. Ry. Co.
Bonds, 200.

Sylvania Central Ry. Co., extension or renewal of notes, granted. Sylvania
Central Ry. Co. Notes, 501.

Yazoo & Mississippi Valley R. Co., extension of improvement bonds from
January 1, 1934, to January 1, 1939, granted. Yazoo & M. V. R. Co. Bonds, 649.
NOTES. See also MATurities and RETIREMENTS under this heading.

In General: Under sec. 5 of the Reconstruction Finance Corporation Act,
the authorization of the Commission is unnecessary to enable a carrier to issue or
reissue notes to the Corporation to replace notes held by it. Boston & M. R.
Notes, 331.

Notes which exceed 5 percent of a carrier's securities outstanding and are
issued without the approval of the Commission are void. Mississippi Central
R. Co. Note, 459.

Notes issued to evidence loans for current expenses do not constitute a proper
basis for a bond issue. Morristown & E. R. Co. Bonds, 673 (674).

Shrinkage in the fair market value of no-par stock reduces the aggregate of
short-term notes which a carrier would be permitted to issue to a corresponding
extent. Chicago, M., St. P. & P. R. Co. Bonds, 725 (731).

Individual Applications: Authorizations to issue, etc.: Baltimore & Ohio
R. Co., 3-year convertible secured notes in part retirement of consolidated first-
mortgage bonds of the Cleveland, L. & W. Ry. Co., granted. Baltimore & O. R.
Co. Securities, 392.

Boston & Maine R.: Short-term note or notes to evidence a loan from the Rail-
road Credit Corporation, granted. Boston & M. R. Securities, 151; Promissory
notes to retire outstanding notes and provide for future requirements, granted.
Boston & M. R. Notes, 331.

Chicago, Indianapolis & Louisville Ry. Co., to issue and renew promissory
notes to procure funds from the Railroad Credit Corporation to meet maturing
interest, granted. Chicago, I. & L. Ry. Co. Notes, 123.

Delaware & Hudson R. Corp., promissory notes to evidence loans to be used for
corporate purposes, granted. Delaware & H. R. Corp. Notes, 741.

Delaware, Lackawanna & Western R. Co., to issue and renew promissory notes
to the Railroad Credit Corporation, granted. Delaware, L. & W. R. Co. Securi-
ties, 97.

Mississippi Central R. Co., promissory note to be delivered to the United
States Lumber Co., in payment of a like amount of indebtedness, granted.
Mississippi Central R. Co. Note, 459.

New York Central R. Co., short-term promissory notes in renewal of or sub-
stitution for short-term notes, or for general corporate purposes, granted. New
York Central R. Co. Securities, 763.

Sacramento Northern Ry., promissory note to be delivered to the Western
Pac. R. Co., in satisfaction of a like amount of advances for additions and better-
ments, granted. Sacramento N. Ry. Note, 205.

Sylvania Central Ry. Co., to issue and extend or renew promissory notes to
be delivered to the receiver of the Central of Georgia Ry. Co., to evidence
advances, granted. Sylvania Central Ry. Co. Notes, 501.

Tidewater Southern Ry. Co., promissory note to be delivered to the Western
Pac. R. Co., in satisfaction of a like amount of advances for additions and
betterments, granted. Tidewater S. Ry. Co. Note, 207.

PLEDGING: In General: Issue and pledge of bonds as collateral for loans
from the Railroad Credit Corporation will not result in their being outstanding
in the hands of the public unless there is default in the payment of the obligation
for which they are pledged. Yazoo & M. V. R. Co. Bonds, 51 (52).

Under the terms of the Reconstruction Finance Corporation Act, the Com-
mission is required to find that the Corporation will be adequately secured in
making loans to railroads. Waco, B., T. & S. Ry. Co. and Receiver Recon-
struction Loan, 168 (180-181).

In authorizing the procurement of authentication and delivery of bonds, the
Commission in no way commits itself to approving a later application to sell
or pledge them. Charleston & W. C. Ry. Co. Bonds, 309 (312).

It is unnecessary to secure authority of the Commission for the pledge of
bonds issued prior to the effective date of sec. 20a. Baltimore & O. R. Co.
Securities, 392 (393).

No authority is required under sec. 20a to permit a carrier to pledge securities
as collateral for loans from the Reconstruction Finance Corporation: Erie R.
Co. Bonds, 791 (792); Illinois Central R. Co. Pledge of Bonds, 649 (650); Yazoo
& M. V. R. Co. Bonds, 649 (650).