Evening star. [volume] (Washington, D.C.) 1854-1972, 1890-06-03
Offer Made in New York for the Balti.
more City Holdings.

From the Baltimore Sun.
formal offer for the purchase at par of the
81, 500 shares Of Baltimore and Ohio railroad
stock held by the city of Baltimore has been
made to the finance commissioners and de-
clined. The offer came through MIR. Edward
r. Bacon of New York. the president of the
Baltimore and Ohio Southwestern Railroad
Company, who represented the syndicate of
capitalists recently formed for the purchase of
this stock.
The meeting of the finance board was held
at noon yesterday Mayor Davidson, Enoch
Pratt and W. w. Spence, the three commis-
sioners, being present. The bid of Mr.. Bacon.
which was dated from the Mount Vernon
Hotel. was submitted. The proposition states
that if accepted the money will be paid on or
before July l, and that the purchasers will
execute a formal contract and give satisfactory
security for the faithful performance of their
part of the agreement.
After the adjournment of the board Mr.
Spence said that there was but little hesitation
OH the part OF the board in refusing the pro-
position. as all we're of opinion the price was
insufficient He was unable to say whether or
not the matter would end with the refusal Of
this first offer, but in his opinion if the syndl-
cate were earnest in their desire to secure the
stock they would make a more liberal offer
That the offer should come through an official
high in the councils OF Baltimore and Ohio
Company was significant as it indicates that
the syndicate MIR. Bacon represents is close to
the present administration OF the company and
includes fnanciers who have faith in the future
earning capacity of the Baltimore and Ohio
road.
Mr.. Pratt said the price was out OF propor-
ton to the intrinsic value Of the stock. He
was not willing to face the harsh criticism that
he knew any such action on the part of the
board would have been subjected to by the
people OF the city. Mr.. Pratt reiterated his
opinion that the stock was cheap at SIPS He
said that director in his bank had COM
mended the action of the commissioners in
refusing the bid, and had said that the syndI-
cate would yet offer sl25 for the city's hold
ings. Mr.. Pratt says he bought Baltimore and
Ohio stock at $29 and sold il for $780, and also
sold some as high as $206. The road had Grip
pied itself In building the Philadelphia and
New York extension, but this had not detract ted
from the value of the property. The stock
was worth more than par, and so long as he
renamed IN the finance board more than par
must be bid before we would consent to the
city parting with its holdings
Mr.. John Gill, president of the Mercantile
Trust and Deposit Company. said that as
matter OF policy he thought the city should
have accepted the bid. 1t was not a question
Of receiving the last farthing for the stock, but
a question of policy that is to be considered
The fact that short while ago Baltimore and
Ohio stock was down to S85 seemed to have
been lost sight Of entirely. If the CITY and
road were both to be benefited by a segrega-
ton of interests a fair market price for the
stock was fair offer for the city's holdings
MIR. Edward Il. Bacon. the principal in the
deal, said he had heard OF the refusal of his
offer, but he did not know that this was final
as his proposition was addressed to the mayor
and council. Mr.. Bacon said that his offer had
been made after careful consideration by the
syndicate OF which he is member that it
was all they thought the stock was worth, and
was the last bid that would come from them.
The stock, he said. was minority holding
and in the present status of affairs was almost
useless to any person who was not in close
accord and sympathy with the Baltimore and
Ohio road
The news of the rejection by the finance
commissioners of the syndicate proposition
made by MIR. Bacon, to buy the Baltimore and
Ohio common stock atpar had marked effect
upon the dealings at the afternoons call of the
stock exchange. The sales at lOl aggregated
439 shares in lots and then it dropped to 100.
at which 500 shares were sold