1. Is the Millbrook Company (p. 760) insolvent under the definition of insolvency contained in the Bankruptcy Law?

2. Why did the Pacific Gas and Electric Company (pp. 929-932) readjust its capital account?

3. Did the readjustment of the capital account of the Hudson and Manhattan Railroad Company increase or decrease the capitalization? (pp. 932-937.)

4. What objects were sought to be effected by the readjustment of the Hudson and Manhattan Railroad Company? (pp. 933-965.) How were the objects attained under the readjustment?

5. Prepare a table of the claims against the B. and O. in the order of their priority (pp. 966-1000), and show how these priorities were respected in the reorganization agreement.

6. In 1897, the highest prices that could be obtained for Baltimore and Ohio common, first preferred and second preferred were respectively 21, 45 and 25. In 1900, the Baltimore and Ohio common sold from 58 1/4 to 89 7/8 and preferred from 72 3/4 to 90. Assume money is worth 4 1/2 per cent.

Refer to the Baltimore and Ohio reorganization agreement (pp. 966-1000), and then answer the following questions, showing all computations used in arriving at your conclusion:

(a) Would it have paid you to have sold your common stock in 1897 or to have held it, gone through the reorganization and sold in 1900?

(b) Would it have paid you to have sold your first preferred stock in 1897, or to have held it, gone through the reorganization and sold in 1900?

(c) Would it have paid you to have sold your second preferred stock in 1897, or to have held it, gone through the reorganization and sold in 1900?