16
 

and St. Louis Railway Company, 39 Hudson passenger locomotives, 37 oil-battery electric
switching locomotives, 49 milk cars, 10 dining cars and 1 light-weight coach; to The Michi¬
gan Central Railroad Company, 4 oil-battery electric switching locomotives and 993
automobile box cars, some of which were reclassified as box cars.

Advance for Payment of Louisville & JeffersonviUe Bridge and Railroad Company Bonds

On March 1, 1945, $4,500,000, principal amount, of 4% Mortgage Bonds of the Louis¬
ville & JeffersonviUe Bridge and Railroad Company became due. All of the capital stock
of that company is owned by The Cleveland, Cincinnati, Chicago and St. Louis Railway
Company, which also guaranteed the bonds.

In order to provide tor this maturity, this Company, as lessee of the properties of The
Cleveland, Cincinnati, Chicago and St. Louis Railway Company, and for its account,
advanced $4,500,000 for payment of the bonds. This advance was evidenced by the Louis¬
ville & JeffersonviUe Bridge and Railroad Company's 4% demand note in favor of The
Cleveland, Cincinnati, Chicago and St. Louis Railway Company, which note is held by this
Company in accordance with the lease-
Terminal Railroad Association of St. Louis Bonds

In October, 1945, the Terminal Railroad Association of St. Louis issued $40,312,000,
principal amount, of its Refunding and Improvement Mortgage 2%% Bonds, Series D, due
October 1, 1985, for the purpose of providing funds apphed to the retirement or redemption
of $34,000,000, principal amount, of its General Mortgage Refunding 4% Sinking Fund
Gold Bonds due January 1, 1953, and $6,375,000, principal amount, of its Refunding and
Improvement Mortgage 3^% Bonds, Series B, due July 1,1974. The Cleveland, Cincinnati,
Chicago and St. Louis Railway Company joined in a Guaranty Agreement dated October 1,
1945, whereby each of the proprietary companies of the Terminal Association guarantees
payment of its stock ownership proportion of the principal amount of, all interest on, and
all installments of the sinking fund for, these Bonds, such proportion being two-sixteenths
in the case of the Missouri Pacific Railroad Company and one-sixteenth in the case of each
of the other proprietary companies, including The Cleveland, Cincinnati, Chicago and
St. Louis Railway Company. In case of detault by any of the proprietary companies, the
Guaranty Agreement obligates the other proprietary companies not in default to pay their
pro rata shares of the amount in default. This Company assumed obligation and liability
in respect of such guarantee by The Cleveland, Cincinnati, Chicago and St. Louis Railway
Company under the provisions of the lease under which it operates the properties of that
Companv.

Lakefront Dock and Railroad Terminal Company

The Lakefront Dock and Railroad Terminal Company was incorporated on August 25,
1945, under the laws of the State of Ohio by this Company and The Baltimore and Ohio
Railroad Company. Under an agreement between the three companies, which will be
effective upon approval by the Interstate Commerce Commission, a new coal and ore dock
facility will be constructed and operated at the lake front on the outskirts of Toledo, Ohio,
near the mouth of the Maumee River. This facility will take the place of separate terminals
which both this Company and The Baltimore and Ohio Railroad Company now maintain
up the Maumee River some distance from its mouth. The locations of their present terminals
handicap both railroad companies in handling lake cargo coal traffic, since lake vessels are
now delayed in navigating the Maumee River, which is spanned in this section by several
drawbridges. The location ot the new terminal at the lake front will make it unnecessary for
vessels to use the Maumee River, and it is expected that by using the new terminal the un¬
favorable position of both this Company and The Baltimore and Ohio Railroad Company in