The aegis & intelligencer. [volume] (Bel Air, Md.) 1864-1923, 1881-08-26
The Baltimore and Delta Railroad.

Incorrect reports are current in REGARD to an
interview between Mr. Waters and myself, which
1T is advisable should be rectfied
At that interview President Waters explained
to me the motives that had influenced the action
OF the Board on the Work proposals and the Gill
in The Egis of the 10th instant.
In regard to the Works proposal the explanation
was satisfactory. Mr.. Waters detailed certain
occurrences in the history of the road, which, he
thought, imposed an obligation on the managers,
not, under any ordinary circumstances, to build
the road on Il stock basis, when the probable re-
suits would be to transfer the control of the Bal
timore and Delta to railroad operators abroad
As Mr.: Works offer would Immediately lead to
this result, he thought 1t would be Il breach of
good faith to accept it. / thought and ap-
proved the rejection of the offer on that ground.
The determining motives had no relation to Mr..
Works financial status. They would have been
lust as engent were he indisputably as rich as
MIR. Waters explanations did not affect my
opinion of the Gimor contract a particle. After
hearing all that he could say in its Justification
(and it was not much,) still regarded it us
wise, i'll considered and improvidcnt arrangement,
by which the interests of the original stockhod-
ers were unjustly coniiscated to the advantage of
MI Gllmor, without any Gompensatlns beneht
to the road. The best that have heard from any
well informed person. in favor of this contract,
amounts rather to an excuse FOR Il bundcr, than
to a justification of the act
The HmJOm Democrat of the 10Th undertakes to
justify this contract. Its article on the subject
abounds in errors of statement, anl is diSinEenu-
Gus in its presentation of what facts it contains.
| do not propose 10 analyze it thoroughly, but
wish TO direct attention to one of its msSaenents
which has II special tendency to mislead and hood
wink the stockholders.
1t says: 1t is understood that the stock (thc
stock issued under the Gilmor contracD is held
IN trust to secure the bonlhOlders."
viii the Democrat inform us by whom il is I'M
derStOod who is the trustee; what are the con-
ditions of the trust. and by what document it is
established? There is no mention of IL in Mr.. Gill
nOrs contract, and by that the status of the
stock when issued will be Diet rnined.
The truth is, there is no such trust. No such
understanding exists with any well informed per-
son. lhe stock 10 be issued will be Mr.. GilmOr's
abs lutely, so far as the road IS concerned, and
| the company can neither regulate its disposition,
nor demand any accouI If its disposal.
sincerely hope we may not be disappointed of
the carly completion of the road believe that If
| it be built economically and operated juhiciuusy,
| IL will he paying road that is besides meeting
| the interest on its bonds, which are doubtless Il
safe investment in any event, it will pay moderate
dividends TO the stockholders even under the in
| cubus of the Gilmore conIscatiOn act. If such
| acts are repeated the stock, already dim nshed sc
per cent in value. wi dwindlc to the estimate set
| upon ii by the DemOc!dt. There are 100000 OF
| the bonds To which the stock arrangement does
| not attach. 1t is to be hoped the management
| will not bn hCguiled into a further donation of
1000 shares, even II valued at only 50 per share
| 1t will be hardly worth while to have saved the
interests of the stockholders from the wicked plots
| of foreign jayhawks, il they are to be wasted
by the innocent indiscrctions of sucking doves
| Matched nearer home. +.