New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-12-01
THE B. AND O. DISTURBED.
RUMORS OF LACK OF HARMONY AMONG THE
DIRECTORS
THE GARRETT STOCK TRANSFERRED BY THE
DREXEL~MoRGAN sYNDICATE-THE
ROAD IN POLITICS.

ROAD IN POLITICS.
Baltimore, Nov. 30 (spccaD.- Reports are in cir
culation that there Is lack OF harmony among the
directors of the Baltimore and Ohio Railroad Com
pany. There is likely to be clash between the
directors representing the State and Baltimore city
interests Of whom Senator German Is the leader, and
the stockholders directors. Tho statement has been
published and IS believed by many persons that the
change In the directory engineered to shut up
all further exposure OF the real condition OF tho com
pany. Such thought to DO in keeping
with the secret policy OF the company under the old
management, and will probably be put In practice
now that the old controlling interests havo once moro
secured majority of directors This change Is the
result OF years contest. When the directors OIL
1887 into Office after the transfer to the Drexc
Morgan syndicate the city and State interests urged on
by public demand, undertook first of all to get
at a correct undels landing of the compaDy's affairs
This was resisted; at least, the appointment OF
the committee of Investigation was bitterly opposed
1t IS said that the Mayor induced TO change two
OF the city directors with the view OF preventing the
passage of this order but Judge Dobbn, Mr. Keysor
and Mr. McLane, private ockholdeIs directors would
not permit the scheme work. and their votes Offset
the city intrigue The pricking of the immense bub-
bic Of tho S4S 900 900 surplus resisted with the
same hardlhood that had kept the surplus figures
standing cold types for so many years for regular
repetition In delusve annual reports. But the resist
ance was overcome by the means that opposition
to investigation silenced and at last the fiction
melted away. The investigation was tho cause OF the
struggle is the bottom of the present stua
ton. The new directory, I'm which family and ndi-
vidual interests appear dominant has the nvesti-
cation committee In two and practically called halt
ON the part OF those who represent the city and State
interests 1t is claimed that purpose IS entertained
of going down To the dIegs, dragging out ndi-
vidual records, or smirchng regulations; but tho
true condition of the company must be ascertained
peliminar, TO taking the necessary steps for Its
large part OF me w6ik ot inyestis CATION has been
the figures of Presidnt spencers report. but some
thing remains TO be done, which IL VIII not do
which may have good foundation or not. Tho In
vcstigaton contemplated not merely the ascertain
mcn OF valuable assets and resources OF the corpora
ton, bu Of Improbable and valucless assets, as
well. Tho committee was required also to report
only the facts as 1t finds them, bur TO make such
recommendations IT may deem best for the better
organization of the company. II was considered That
this committee, backed by tho prompt business SUP
from undergoing runous ordeal. Mr. Frlck, who
the Garrett stock, and whose holdings eectca
Of the committee was to be cut on.
but such reports continue to be crcuia'ea ~ =,
has been in;mated that the new deal has peeh 10 ade
shut Senator German and keep the road out OF
politics, but when the truth IS told the Baltimore and
Ohio Company has always been controlling interest
In the politics Of this city and state particularly under
the Garrett management. The circular OF John b.
Hambleon & Co. tomorrow will say
IL Is evident lndL INC rcSult Va tno ~"
Ohio election has created spirit OF dscord In the
new board OF directors We learn from reliable
that the DreXe Morgan syndicate has released
lis control OF the Garrett stock and that these hold
lngs some $4,000 10000 shares. now controlled
by McssIs FTick and Mayer II was this stock wich
carried the election and elected the new ticket last
week, there can be doubt OF the source from
which the bange in the directory sprung Rumor
has it thai the Baltimore and Ohio Company is drift
ing into the hands of politicians and that there is apt
to Be Earring between the representatives OF tho prl
stockholders and those of the state and city In tho
new board. We also crcdibly informed that The
investigating committee IS expected to continue It's In
vestigatiOn and make a full report =.
Baltimore and Ohio officials deny that the report OF
the company was Influenced by the suggestions Of the
Committee Of Investigation and Intimate that no con
sultatiOn had with the committee, except In re
gard the rcadjustment of the sinking fund. In which
The committee only concurred in the statement already
prepared by President spencer. Another rumor int
mates that the of the change In the Board OF
Directors due TO apprehension that the committee
would criticSe the past management and Indulge IN
president of the company. While all such rumors may
be unjust and even absurd the stockholders who con
ccivcd and carried out the coup cannot be surprised
that their ncXplicable action should be criticised
$685. j25 in the table Of income from sources other
than the operations OF the railroad system actual
cash received from Sterling Main Line sinking funds,
and explains II at thcn sinking funds largely
composed Of securities other than the Baltimore and
OhiO's bonds. and that under the new arrange
ment for substituting consolidated mOrga bonds for
sinking fund securities they Will result in pcrma
nent income 10 the company above. The Baltimore
cate less than 81 900 900 for which loan the syndicate
holds as collateral - 600 600 Western MON Telegraph
stock. The balance of the floating debt IS in the
nature Of obligations held by other parties. II IS
stock held by the syndicate, the securities of the com
Intact.