Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1894-08-02
1T IS ONLY so MUCH TALK,
Elliott, Johnson g. Co, Satisfied
With Their Position.

Rumors That tho "Ponnsy" VIII Make
a aIovc--Taik of al Opposition Bid at
the Saio in Salisbury NeIt Nonth--IIow
il Might Affect tho Plans of ti,e Chesa-
peake Consolidation Syndicate.
The Baltimore jSGR of last Friday
contained the following:
at was rumored ON South street yes
terdav that the Pennsylvania Railroad
Co. may become bidder for the Balti-
more s. Eastern Shore railroad at the
foreclosure sale the latter part of August.
'If this turns out to be true, the pur-
pose of the Pennsylvania Co. would4e
10 forcstall and defeat any combination
that would interfere with the business
it now controls in the Maryland Psnin-
sula.
"The Baltimore & Eastern Shore was
expected to be bought by the friends of
the syndicate which has recently pur-
chased the Maryland and Eastern Shore
Steamboat Companies. Arrangements
had been made with the bondholders of
the B. g. Il. s. Co. by which they were
to accept preferred stock in the con-
solidated company at 65 per cent Of
their holdings. This removed them as
bidders for the property.
"The rumored plan of the Pennsyl-
vania Company has injected an unfore-
seen obstacle in the way of the pro-
moters of the consolidation. II the
Pennsylvania enters the field as bidder
for the railroad property, it may run
the price up to figure beyond the
anticipated price at which it was ex-
pected to be purchased, which might
entail change in the syndicate's plan
and compel it to issue larger amount
of consolidation bonds than was at first
| intended SO as to meet the opposition
bid of the Pennsylvania Company.
sit was at first proposed to issue
Sl,250,0 of bonds to pay for the
steamboat properties, the priorliens to the
railroad and other expenses. If the Balti-
mere and Eastern Shore bondholders
| find that such a strong corporation as
the Pennsylvania Railroad Go. is after
| the road they may not consent to accept
65 per cent of their holdings in the pre-
ferred stock and may endeavor to find
some legal means to escape from con-
tract binding them TO do so, if such q
| contract has been entered into. 1t was
estimated that the road would sell for
S400, 900, as it will require this sum to
free it from encumbrance, but the prob
able purchase by the Pennsylvania
| SoHipau1 lhdy SUM wv ptSPS4sJ ~SO'S
this figure at the sale.
at is said that Pennsylvania Com
pany has had its agents at Salisbury
and other principal points along the
Baltimore & Eastern Shore road for
several weeks, making inquiries as to its
freight and passenger business. This, 1t
is believed, is done with the view of
placing proper valuation on the earn
ing capacity of the road, so as to govern
the Pennsylvania Company in the bid
ding"
A representative of The GAZETTE
interviewed Henry z. Scott, Of
Elliott, johnson ~ Co., last Friday in
regard to the article. 1t was Mr.. Scott
who purchased the properties.
After perusing the Suns words he
said: "That is, as you see, merely a
rumor, in fact, so much talk. l, myself,
am thoroughly satisfied with the posi-
ton of our syndicate in the matter.
Further than that, have nothing TO
SAW