The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1860-02-22


largely increased representation in the Board 0
% Directors We accompanied the publication will
some remarks expressive of our own, and wha
we believe to be the general sentiments of thi
community, in opposition to the Bill; and as it i
made the order of the day in the Senate for to
day, and is a measure affecting the most import
ant interests of the State and city, we havt
thonght it worth while to direct public attention
again TO lis provisions and evident design Tht
provisions of the Bill are briefly
l. That the Stockholders, other than the State
of Maryland and the Mayor and City Council o
Baltimore, shall be entitled to one Director 70,
every twenty-five hundred shares of stock by them
owned;
2 That the act shall not take effect until &C.
cepted by the stockholders in general meeting;
3. That the Commissioners of Public Works
shall vote the stock held by the State in accept
ance Of the act
The effect Of the Bill, if it shall become law,
will be to give TO the private stockholders twenty
three Directors instead of twelve, their present
representation. The State and city together will
continue to be represented by eighteen Directors
the number they now have
The object of the Bill is, of course, to give the
control of the Road TO the private stockholders
The objections to such n measure are based upon
considerations of the plainest public policy. The
stockholders So $50 shares of stock, represent
ing less than six millions of dollars The city and
State together own II $50 shares representing over
seven millions of dollars. The actual cost of the
road has exceeded thirty millions of dollars The
proposition, therefore, is simply to give to a mi
nority of the stockholders the control of work
costing five times the amount of their investment
The objection TO any such measure, apart from the
want of equity which is apparent upon the face of
IT. is the danger Of having the road diverted from
the purposes of its construction, and worked for
the exclusive profit of private owners or the ad-
vantage, it may be- of rival cities or corporations
and in either event to the injury of the State and
the city OF Baltimore. That this danger is real and
imminent, and not imaginary or remote few
considerations will suffice to show. In any case
in which the interests of the State and CITY should
be opposed TO the views or interests of the private
stockholders, or require different line of policy
or system of management from that to which the
latter may incline, the State and CITY MIGHT
Just as well not be represented at adj as be repre
scented by eighteen directors in Board
OF iorty-one. For all practicable purposes, the
control of the private stockholders over the road
would be absolute, and they would be able to
shape It's policy TO suit themselves. That the in
torests OF the public and those of the stocl-hod-
erS, may be not only diverse, but antagonstic, is
a thing which may easily happen--has happened
VIII happen again 1t is the interest of the public
that the road shall be so managed as to develop |
the resources and trade of the city and State 1t
is the interest of the stockholders that the road
shall he so worked to yield the largest measure
OF profits in the shape of dividends to the stock
holders themselves. If all the stockholders were |
citizens OF Maryland, interested in the prosperity
OF the city and State and held the stock as per-
investment, these interests might and !
indeed ought to be reconced The road might |
be so worked as to promote the growth and trade |
OF the city, and develop the agricultural and min
eral resources of the State, and the prosperity of
both would add TO the business and consequent |
profit of the road. But, unfortunately, the stock
holders in our road, as in other roads are not al
ways of the desirable class we have described.
Baltimore and Ohio Railroad stock is, and has
been, for years the leading fancy in our stock
market. 1t is the play.thing of bulls and |
bears, and large portion of it is at
all times held by men who have bought |
to sell, and are only waiting for a chance
to sell at a higher figure than that at which they
bought. The interest of these men, therefore, is |
not in the prosperity of the road but in the price
of the stock. Yet they are the very men who are |
always seeking to control the road-who hold the |
largest number of proxies at elections-who en- |
deavor TO have themselves or their friends chosen
AS dI"ectors-who are now urging the Legislature |
to increase the representation of the private stock
holders in the Board. Their interest in the road |
being, in its nature, transient and ephemeral-
only so long as they hold the stock and until they
are able to get rid ofi-their policy is to increase
receipts, diminish expenses declare dividends, and
sell ont. Certainly it is not in such hands that
the Legislature should be willing to place the en-
lire and unfetered control of the road
Another interest opposed TO that of the public
S the interest of competing lines and of the great
New Jersey road, which controls the railway COM
between our city and New York, and
whose competitor is the ocean. Should the inter
st of either control he policy of our road,
!
70 10 drive the trade Of the West
over other roads and to other cities-n the other,
% as TO divert The freight which should
ome this way and 10 this city, from seeking its
natural outlet, the ocean, and carry it to New
York by the operation of a system of through
and Communication of rates The
fleet OF this would be to make Baltimore merely
tributary TO New York, or to destroy its trade
Together. That our great work. which has cost
he people of this State thirty millions of dollars,
hould ever be converted to such use NAV not at
rst sight seem within the range of possibility,
nut if the bill increasing the representation of the
rivate stockholders should be suffered to pass, it
not only possible but even probable As W,
lave said, the whole amount of stock owned by
private stockholders including the city of Wheel
ng, is less than six millions of dollars The
wners of thirty thousand shares would there
ore elect the twenty-threa directors and
ontrol the road. What is TO hinder any of I
he Northern lines we have referred TO, or
,ersons interested in those lines, from becoming
he owners of thirty thousand shares, and that too
t current rates, with an expenditure of not
lore than two millions of dollars? Does any
ody believe that the persons who own the stock
ow would refuse to sell? 1t is not so widely dis
ributed, as TO render it necessary to apply to
many persons in order to buy. Less than dozen
Individuals, it is said, own sufficient number of
hares to give to any purchaser the entire control
f the road.
Unless therefore, it is prepared TO see our
reat work of internal improvement pass
1to the hands of those who will work it
for their own profit and pos
IDLY to our injury, the Legislature will
esitate to grant any increase of the repre-
entation on the part of the private stock
oiders. The public interests involved are of
90 great magnitude to be put lightly in jeopardy
ma mat they would be greatly mperilled by the
MEASURE In question there can be no reasonable
ouPt- me Baltimore and Ohio Railroad has
ost too much money--is of too much importapco
D the city and State, to be suffered 70 macs ,ndor
he unchecked control of private specplators o. -
e emancipated from the wholesome restraints inn