New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-03-03

TIE BALTIMORE AND OHIO IN NEED.


EFFORTS TO MAKE IT A DEMOCRATIC MACHINE
TRYING 10 GIT MONEY FROM BALTIMORE CITY.
BALTIMORE, March (SpcciaD. -Presl dcnt Spencer,
of the Baltimore and Oh, Company, has brought
down storm of criticism by his request to the city
to return the S2,iOOcO0 paid into the sinking fund
account OF the loan OF $4,000, 900, which the COM
pany wants extended. Even " The Baltimore sum-"
Germans organ, denOunccs It. Some Of the business
men have lcon begucd into tho belief that German
went into the Baltimore and Ohio directory solely 10
protect the State and the city interests and that 10
permit the Drexcl Morgan syndicate 10 control tho
financial policy of the company would be uinous. In
banking circles the action of the City Council In leg
lslaing out Of Office the city directors recently al-
pointed and making law OF selecting thcm 30
that men more acceptable to tho Democratic machine
be appointed, IS bitterly denounced. Tho weekly
circular OF Uamblclon & Co., IA commenting upon
this, says:
Unless the Council can give more satisfactory ex.
PLANTATION of lis remarkable action. the members OF
tina! body have placed themselves IN an unenFlaDlc
position
OF the proposed loan extension Mcssrs. IIamblcton
& Co. have this to say:
1t will be remembered that tho proposed issue
of Sj,OO0,0oO Baltimore and Ohio third preferred
stock and the sale Of the Same 10 the DeAcAlorgan
syndicate defeated chiefly through the influence
ohio Company. rno explanation given for prevent
Ing the carrying ont of the agreement of the managers
Of the Baltimore and ONO Company aud The syndicate
was that 1t was feared the issue OF the 35,0ooo0O in
stock would give the syndicate larger Interest in tho
Baltimore AMI Ohio Company than was desirable,
which interest might have been used to the disad-
vantage OF the state and city. IT l. evident that
the Baltimore and Ohio cannot do without tho assist
which the action Of the representatives. OF tho
state and city prevented 1t from receiving. Under
any circumstances, We consider that the Baltimore
and Ohio Company should receive the support and
assistance Of the state and city, provided the company
furnish full and adequate security and especially
under The existing clicumSi anccs, which wore
brought about by the state and city directors in the
Baltimore and Ohio Company SO far As extend
ing the unpaid portion of the Baltimore and Ohio
81 900 loan IL concerned there can be no posi-
bic for refusing t. do but the proposition
Ia return the 924OO,OOO already paid account
OF the loan might, If accedcd to- establish precedent
dangerous TO extreme Another objection IS
that subsequent loans have been made by the Bati-
more and Ohio Company under the distinct under
standing and aCreernen that 81 400 600 Of the prior
lien Of the ..OOOO0O loan had been paid of, and this
fact might invalidate the security OF the mortgage
the city, should the ~ 100000 be returned to the
pany and the entire 90 coo 600 mortgage extended
Tncrc exists only S221S, 600 In prior Hens IN the
mort gage securing the unpaid balance Of the Baltimore
and Ohio dobt Of $4,000 10 The city. that the
city is fully secured and justified in extending the
unpaid portion Of the loan.