New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-01-13
BLOCKING THE SYNDICATE.
REFUSING TO VOTE THENEw B. & o. STOCK.
SENATOR GoRMAY PERsUADING THE CITY AMI
STATE DIRECTORS NOT TO VOTE


BALTIMORE Jan. IL (SpeciqD.-Senator German
has nearly, II not quite succeeded in defeating thu
Drcxel Morgan Syndicate In its plans TO rcorganzt
the Baltimore and Ohio Railroad. Through his IN
Huence the State and baltimore city directors ala not
vote their interest amounting 10 42,'OO shares OF
stock at tho general stockholders meeting to-day and
thus cndeavored to prevent tho issue OF So'ooo'ooo
I'm third preferred per cent stock to tho syndicate
Senator German present at the voting OF the STOCK
to-day and remained in constant communication with
Mayor Larobs at the city Hall There were no more
than a dozen directors and stockholders present when
Rcverdy Johnson at the request OF President spencer
called The meeting TO order The voting at once be-
GAN In little less than an hour the ellers reported
to tho chair that in order TO mako the vote on the
proposion TO issIe the &5,0OO,OO0 preferred stock
effective It was necessary for 9S,2s4 shares, a
majority OF the whole stock, common and preferred
to be voted. Only 1880 shares were voted at the
meeting, all of which cast in favor OF Issuing
the stock The syndicate was therefore nearly
$4,000 shares short of the number required When
Senator German, who awaited the result In another
room, informed of IT, he merely smiled and then
had conference with President spencer Tho result
Is regarded by some as victory for tho city and
State, IT is not believed that the syndicate can mus
ter enough votes to order the Issue OF the preferred
stock at the meeting to be held tomorrow.
Should there be no quorum Oh the day tho meeting
Is called an adjournm mt must follow until tho next
day; when should there be no quorum, second
adjournment must be had and II the third day there
shall still be no quorum the proposition falls. But II
on any one of tho days of the meeting majority OF
tho common and preferred stock shall be present and
vote and a majority of those present shall vote TO
issue the additional stock their action shall DO deci
sive, although the number of shares voted for the
issue may be less than third of the whole.
Senator Gorman's plan IA the leader of the contest
part of the State and city directors is evidently
to block the syndicate thee days and then what the
| ha Ic IN In.
and the other State and city directors declare that
the previous sales OF the express and telegraph have
furnished sufficient funds tho road and that to
issue the proposed S5,oO0,OO0 preferred stock TO tho
syndicate would be to place the road entirely in the
syn ilcate power Tho cOntrst may result in placing
| the road In the hands of receiver.
The views of Senator German and lis reasons for
making the contest against the issue Of the stock
are said TO be embodied n the following statement:
"The recent negotiations with the syndicate resulted
In the mortgage for $20O00000 sufficient 10 take mp all
prior cages aud Hens and have balance of $780,
0Oo OF this balance, the syI dictate took up $1,000
co., leaving &2,30OOG0 for The use q the company N
Its operations. II is thought this S21OOoOo iii DO
used to take up the city stock The syndicate further
agreed take SJ0OO,0Oc ut stock OF The company
either preferred common at ninety-fve, but II Is
optional with The company to sell 1t Or not TX II IS
sold II will place the control OF the road practically I'D
| the hands of the syndicate. .
"The sale OF the telegraph and express franchise
and other business operations have given the railroad
| company money enough to meet ITS needs without INC
| sale of its stock, and If the company should
desire hereafter for any purpose to sell the stock
worth l 10 to 115. But it Is considered by the city
and directors and number Of private sioekhodeI
| directors sufficient make majority Of the General
Board that II is clearly preferable to heel the ccnfp
OF the stock here as the road l. city ana stare IN
sttuton Of the first importance to our business lhier
ests If S5OOOOOO Of preferred stock should be sou
would the fixed charges of the road $3OO0ol
yea and would practically postpone Tor three OF io
years any dividend whatever on the common stock hee
by the City of Baltimore, the Johns Hopkins SnTef b
and private individuals. II has also been decldei D,
the courts that the dividends the preferred sioci
(6 pcr cent per annum) must be paid before private
stockhC dcrs receive anythng so mat ii the
company rs at present. does not sllclct 70 pay
| the dividend In 1858. the sum in default would DC
first charge the surplus of the succeeding year JUS
as in the case of The coupons In fact, the Baltimore
and Ohio preferred stock Is practically DOhd VIII
voting power" A., 49,. ,.os, ,rho
In banking circles. however, there are those ~hG
think it would be decidedly better for me roam aso
tLe stockholders II the syndicate. that has so sue
ccssfuy reorganzed and helped other railroads out o.
serious difficulties, should be permitted 10 perio
bampcred a similar benefit to tho Baltimore ana ONO
In order for the road be conducted "a business cor
poration will have be In the interest u III
| particular city, but purely business prlhcipcS'