The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1858-05-24

of the fact that the meeting was to be open TO the
representatives of the press and that the veil of
secrecy which usually hides the transactions of the
Board from the public, was on that occasion to be
removed. The omission did not proceed from any
want of appreciation on the part of the conductors
of this Journal of the Importance of those proceed
ings of the interest felt by all classes in this
community in the affairs of the Road. On the
contrary, it has been our constant wish to obtain
for ourselves, and to furnish to the public, the
fullest and most accurate information within our
reach, on this important subject If we have hith-
erto studiously refrained from the expression of
any opinion as to the present condition, or future
prospects of the Company, it has been because the
utmost information which we have been able TO
obtain, has been neither full nor accurate. The
published Statements and Reports of the President
and Directors of the Road have long since ceased
to be regarded by the public, as affording any
certain clew to the real condition of its finances.
1t has been discovered that figures pM sometimes
lie, although Presidents and Directors may be
above suspicion, and that public confidence in the
virtue and integrity of the respectable gentlemen
who have the management of the affairs of the
Company by no means implies implicit faith in
their skill as fnanciers. The discrepancy between
the Majority and Minority Reports of the Special
Committee of Directors appointed ''to investigate
'the Financial condition, General Line of Policy"
&C., of the Road sufficiently illustrates the diff
culhes which attend any effort to unrayel the
intricacies of Railroad management These Re
ports, signed by Directors of the Company.
gentlemen of equal respectablty and intelligence,
and possessing equal opportunities of testing the
accuracy of their statements by reference to the
books and accounts of the Company, differ materi-
ally both as to matters of speculation and matters
OF fact They differ as to the amount ofthe floating
debt OF the Company, which in the one Report, four
Directors estimate to have been on the LIST of Feb
ruary SS4s, 94S73, and in the other, five Directors
estimate, on the 10th of February, to have been
$994,s77 They differ as to the extent and char
acter OF the provision made by the company for
the redemption of its mortgage debt. OF the Sink
ing Fund, created for this express purpose by
resolution of the Board on the 18th December
1856, the Minority say-"The most conservative
'element in the system, and that which most
"ensures confidence in the permanent security
land value of railway property is the forma-
"ton and maintenance of suitable sinking
FUNDS for meeting mortgage Indebtedness. 1t
rs therefore highly important that the wise and
comprehensive basis and system adopted by the
baltimore and Ohio Railroad Company shall be
maintained - The undersigned therefore
recommend that the sinking funds be maintain
led in full integrity, and that the interest due to
'each be paid and properly invested, in accordance
with the action and pledges of the company"
IN their account of the same Sinking Fund, the
Majority, after referring to the fact that Gin it are
embraced the two iron bonds of loan No. 2. of
Sll3, 1913 each, due and paid in London. on LIST
January, 1857, and first January, 1855" say
''These bonds were liabilities of the Companv
(which were retired as they fell due, Just as all
'other fixed engagements ofthe Company have been,
land IN the opinion of your Committee, there is no
,oetter reason for making them constitute part of
tine sinking fund.- than any other paid note or ac-
count IN the possession of the COMPANY In fact,
lone OF them had been RENTED for month before
1.-THE sinking fund was instituted 1t would be
'quite as reasonable for merchant to gather into
ia bundle all the notes he had ever paid stamn
"them belonging to the sinking fund, not to be
're-issued,' and rely on them as means for
"redeeming outstanding liabilities. The pro-
"cess is at best an idle ceremony, which cam
mot possibly add dollar to the real substan-
'tlal means of the Company, and your Committee
recommend that these bonds be Cancelled and
made to disappear from amongst the liabilities of
"the Company, so that in the Annual Statement.
loan No. may no longer appear recorded en-
"cumbrance for twice its real amount" H.a,a
In respect to the policy of the Road, in reference
to its Western connections the Minority say "a
Liberal policy has been pursued in relation to the
transfer OF merchandise and passengers, between
1.-THE terminus of the Marietta and Cincinnati Road
land Parkersburg Whilst the distance is but
''miles, Sc miles have been added TO the actual
length of their line in dividing the through rates
thus giving to that road the entire advantage of
the reduced distance between Cincinnati and Balti-
more careful discrimination in IA
'vor OF the mercantile and general interests of Bal
"hmore has been vigorously maintained, and has
resulted in most beneficial effects upon the trade
"of the city," .ra ..t
Upon the same subject the Majority say ''The
transfer between Parkersburg and Marietta was
''under the control of the Marietta and Cincinnati
''Road which was allowed therefor Sc miles of rail
I'm computing its pro rata on through trade thus
making the computed chargeable distance from
"this city to Cincinnati by that route the same as
'by the Northern line and thus depriving both this
'Road and city of all the advantages Of the shortest
'i'ne det'ceea the seaboard and the Great Vest to
''whieh they are so justly entiled'' .... .a
The italics are those of the Committee. Finally
with respect to the financial condition of the Road
the Majority quote from the Annual Report of the
President and Directors October LIST, 1861 stbe
gratifying fact that in addition to the payment
'from the net earnings of $40, 566 % of the fund
ed mortgage debt the sum of $500, 9S3 95, constaut
ling the entire floating debt Of the Company, except
''the trihng of So, 500, not then matured, had
been liqudated They then proceed to state ''that
'since the LIST October, 1885, the whole of the net
receipts OF nearly two millions and quarter have
been absorbed, and the floating dett is about one
''million of dollars"
The Minority, in their statement of what |
would have been the financial condition of the
company, but for its advances amounting to |
81, 4l5, 9s6.23 to the Parkersburg Road. say
''the gratifying fact is thus demonstrated that |
''but for its connection with the North Western
"Yirgna Railroad, the Baltimore and Ohio
'Railroad Company would in February last bava
'been entirely free from floating debt-would
fhave continued to purchase all its materials for
'cash-paid the regular cash dividend, and still
''have had surplus of cash in the Treasury of
1920, 1890, thus also ensuring the April divi-
'dend.' s,, ..l,is .at rs i-air-s -la ,-
These extracts are enough to illustrate the ex-
ceeding difficulty in the way of getting any correct
insight into the affairs of the BALTIMORE AND ONO
RAILROAD COMPANY, from reading the official state
ments put forth by its COMMITTEES and Directors.
Without entering further into the subject at this
present time, We merely wish to call public atten-
ton to the contradictory statements of these two
Reports As public ionrnaI;s, - ey1 It.