The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1886-11-24
Mr.. Garrett,s Great scheme.

NEW YORK, Nov 23-A special frou~Mash-
ineton to the World says: "a gentleman from
Cincinnati, vino has for number of years been
prominently connected with the railroad systems
in Ohio. and who is, perhaps, as close to Presi
dent Robert Garrett of the Baltimore g. Ohio. as
any person not member of his official family.
has said to a representative of the World that
new departure of the Baltimore & Ohio system
might soon be expected. In brief, the B. d y.
people are negotiating for lines leading to the
Southern territory. Since the Baltimore & Ohio
lost control of the Ohio & Mississippi, which
gave it an outlet to the Mississippi river and be-
yond, and, through the friendly relations with
the Illinois Central, an opportunity for fair
proportion of the traffic from the South an aD-
rupt terminal has been forced at Cincinnati.
The Ohio 81 Mississippi, which Is now In con-
troll of the Erie makes it hostile
line to the interests of the Baltimore 81 Ohio,
with little interchange of traffic at competitive
points Mr. Garrett, seeing the necessity OF
finding an outlet to the South for the necessary
traffic with which to feed the Northern system,
and make more formidable competition with the
Pennsylvania road, which is closely allied with
the Louisville 81 Nashville, is at work hoping to
either negotiate q traffic agreement with or a
purchase of the Cincinnati, New Orleans &
Texas Pacific. more generally known as the Gin
II.
the close friends of Mr.. Garrett that on his re-
cent trip to Europe he spent several days in
close consultation with Baron Erlanger, and the
London board of directors who own that
portion of the system running from Chat
tanooga to New Orleans and Marshall,
Tex, and are, as well, the lessees Of the
Cincinnati Southern division, extending from
Chattanooga to Cincinnati. There are embraced
in the system almost 1000 miles of road, 1876 of
which are owned by the city of Cincinnati. and
m fha Aipafa nf EnOll Sh n q a
owning the balance of the system 1t. is also
true that the foreign owners are DESTROYS of dis
posing of their holdings. the road. managed
independently of either of the east and west
trunk lines has not in the past year and half,
snceits completion in Texas. paid the expected
semi-annual dividend. The conference between
Mr.. Garrett and the Erlangers resulted in a
proposition to sell the bonds of the owned road
and the transfer of the lease of the Cincinnati
division. The matter was quite thoroughly can
vassed during Mr. Garretts two months stay in
London and Paris He has laid the matter be-
fore his board of directors and it is understood
the plan has been received with much favor. The
principal objection thus far urged is the present
lease of the Cincinnati Southern, which,
in the opinion. of the Baltimore
81 Ohio directory is too high rental.
If the present lease can be abrogated or modi-
fed to reduce the rental there is no doubt but
that the proposition will be accepted. 1t was at
the same conference that Mr.. Garrett secured
the right to operate the Baltimore d Ohio ex
press over the Queen d Crescent system With
the requirement. of this system it will place the
Baltimore & Ohio upon an equal footing with
the Pennsylvania, who are contemplating pur
chase or lease of the East Tennessee, Georgia g.
Virginia system for an Independent entrance to
the South and Southeast. Now that the Balti-
more 81 Ohio have an entrance into New York
the Pennsylva people believe it necessary to
get a controlling interest in the Last Tennessee
in order to prevent a traffic agreement being
made with the Baltimore u Ohio from Shenan-
doah Junction or Washington into New York,
the Pennsylvania now enjoying this feeder at
Harrisburg. Another meeting of the Baltimore
& Ohio directory will be held to further consider
the matter within few DAYS 1t is probable
the negotiations will be terminated by the LIST of
January.