The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1875-03-12
Tho Baltimore Il Ohio Railroad
Tho IICmDIiCll.

Tue following VIII UC VI I"NS'V't !" ""'
citizens as bearing upon the extension Of
the IIcmpGcld Railroad to COnncIlsyillo;
The councils Of the city Of Baltimore
are Just now considering u proposition to
sell some twomlliOns and u half Of Pitts
burph Il CunnclsviIG Railroad bonds,
held by it, to the Baltimore n Ohio Rail. |
road Company for one million Of dollars,
in order to further encourage those two
roads and lend the COnncllsyillc u help. |
ing hand that is much needed just now,
The ordinance now in tho Baltimore
councils provides Tor the sale Of tho in.
tcrcst OF tho city IN the second mortgage
bonds oi the Pittsburgh 4 Conncllsyille
Railroad to the Baltimore Il Ohio Rail.
road Company for the sum Oi one million
of dollars, to bc paid in yearly install.
ments Of $4,000 each, the first payment
to be made OH the lst Of July, 1876, with !
interest payable srmi-annually until the |
whole Is liQuidated. 10 secure the pay.
nlent OF the principal and interest, u
mortgage istO be executed to the city on
all the real and personal estate Of the
company. The second mortgage now
held By The city on the Pittsburgh u Con.
nellsvilIc Railroad amount' At this time
to nbout S2,600,OOO, Of which between
S3OO,OOO and $4,000 consists Of interest |
unpaid and compound interest. All the
city directors in the road recommend the !
sale 10 the Baltimore a Ohio Company on |
the terms proposed in the ordinance. Ii .
is understood, moreover, that II this ar.
rangcmcnt Is perfected, the Baltimore "
Ohio Company will proceed At once to
construct the Pittsburgh " Chicago cnt.
of, whereby n further saving in the dis
lance to the latter city Ol nincty-cnc
miles will BIZ effected; or, estimated by
the difference in grades, one hundred and |
thirteen miles,
The benefit Of such action as above to
the Conceivable road will be apparent,
when We give what President Cohen, Of
that road says:
"rhe Conncllyyille railroad ia not pay.
ing; she has first and second mortgage
bonds out, and has not been able to pay
the interest on these bonds. The BaIti. !
more and Ohio road has been furnishing
money largely to help the road along
build it up and equip ii, but now the
Baltimore and Ohio have determined to
advance no more money until mat er' are
put in better shape, and they make this
lair proposition TO buy these second mort.
gage bonds from the city OF Baltimore on
the terms stated. They will then ad vance
more money to more completely equip the
Connellsville road, and they think they
can make the road pay lis expenses With
in wear or two They are willing to
take the risk anyhow, and in assuming il
will, Of course, make themselves liable to
nav the interest on the first mortgage
bonds, and will pay that interest ~ it be.
comes due
"The city Of Baltimore will, Of course
lose by this transaction, but Baltimore
derives great benefit from the CohnrIIs'
willie road, and will reap still greater nd.
vantagcs ~ the road gets in better shape.
The Baltimore & Ohio people therefore
think that Baltimore can stand what
seems to be loss, but what Ia really
made 10 in the advantage the road IL to
the city. The fact is the Baltimore y Ohio
Company want ogGt the financial Ailairrsoi
the Conncllsyillc road put into ship
shape.
a. the case is now the i. q 0. Com.
pany won't invest any more money in the
ConnclIsvillc road until the matter j. set.
tied, because they fear that the bond
holders, who want their interest, may sud.
denly swoUp down upon the road, and
take it, and thus tho H. ~ o. road would
lose all its money. But II this PROPOSE.
ton is accepted, the d. 4 Q. road will
nut the Connelsvillc road into such n
shape that it will likely pay, and then
the interest on the first mortgage bonds
will be paid promptly, and the Connels.
vile road will thus DO OH good financial
basis The h. & 0. road will pay the
interest on the first mortgage bonds, but
they wont assume it on the second ad.
dition They want to get clear OF one
batch before they will put any more
money into the road"
Allegheny county holds also about
S2OO,OO0 Of these second mortgage bonds
Of the COnnelsvillo road, but they. will
not be effected in the least by this Ialti.
more transaction. President Cohen
thinks Allegheny county could he little
magnanimons in the matter, but Con.
troiIer Warren yOcs in for CoIlcctinseycry
dollar, although he Ia fully satisfied to
give the Conceivable road all the time II
wants to pay up, as the county is not par.
ticularly in need Of the money aud tho
security il perfectly safe