Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-12-25
THE B. AND O. ROAD
Its Probable Consolidation With
the Southern Railway.
SOME INTERESTING INSIDE HISTORY
A Railroad Deal of Importance to
This City.
WILL JOIN AT WASHINGTON

| For some >time past the railroad world
| has been agitated by rumors of impending
| deals of great magnitude, and more re-
| Gently the gossip has been taking a
! more tangible shape, so that at present
| there is good reason TO believe that an
/ nouncements of startling proportions may
| be made in the near future The oues-
| ton, indeed. that is now interesting Amer
| lean railroad circles, and especially those
| in the east, is whether the great Baltimore
| and Ohio railroad, which for more than
quarter of century has been regarded as
| one of the most important of the trunk
| lire systems of the country, is soon to pass
| into the actual, if not the admitted, con-
| troll CT the same parties who have a DON'T
| mating and controlling interest in the
| Southern Railway Company. The inter
| rogatory makes some history extremely
| pertinent at this time.
| For the first time since the late John w.
| Garrett became the head of tie Baltimore
| and Ohio Railroad Company, in 1855, forty
years ago, the friends of the Carrots
| found, on the occasion of the meeting for
| the election of president in Baltimore On
Wednesday of last week, that they were
| unable to select that official.
Mr.. King Might Have Been Chosen.
| Had election for the presidency of the
| company taken place two weeks ago It is
| not improbable that President Mayer, who
| had become aware, it is said, tina: his pres
ence the head of the company for an
other year would not be congenial the
| New York members of the board of d.
| rectors, would have been succeeded by
! Second Vice President Thomas NJ. King
who has been in the service Of the COM
| pany for many years and who possesses
the unlimited Coiitla sEce Of the CARROTS
| and those associated witk him in railroad
matters. But when the directors who rep
| resent the New York and what called
| the foreign interests OF the road arrived in
| Baltimore to attend the meeting they were,
| 1t IS said made aware Of the fact that a
most bitter feud has existed for many
years between Vice President King and
Mr.. Samuel Spencer, president of the
Southern Hallway Company, who, Ike Mr.
King, was Tor many years leading OIL
| cial of the B. and o.
a Glance at Mr.. Mayors Policy.
When this state of affairs was made
known to the New York men, they deter
mined to POSTPONE the election of a successor
to Mr.. Mayer until later date, and, as al
ready stated in The Star. MIR. Mayer was re-
quested to remain at the head of the COM
pany for the present. The reason for this
decision will be shown in few words:
II is an open secret that the Baltimore and
Ohio Railroad Company for a long time past
has been hard pressed for money and a
prominent official of the company is author
ity for the statement that money had tG be
procured at almost any cost to provide for
floating Indebtedness, which was neld by
persons who We're clamoring loudly for their
money. 1t is also declared that President
Mayer was so anxious to provide better
mentS for the System-Such as more I'M
proved terminal facilities at Staten Island
Philadelphia, Baltimore, Cleveland Chicago
and elsewhere-that funds to the extent of 4
million and a half of dollars, that some
| thought should have been used to pay cred
itors who furnished supplies to the road
were taken for the first named purposes.
In consequence of this. according to the
same authority, the credit of the road has
Eeen injured, and the road and rolling stock
= principally locomotives - have suffered.
| This state of affairs became known to the
New York directors in the course of their ex-
animation of the company's affairs and
when It found to be absolutely neces-
Sary to raise a large sum of money, said to
be aoo1ooo, in order to pay off the floating
indebtedness, and to provide necessary
equipment, 1t was impossible to do SO under
the circumstances then existing.
DreNel, Morgan & Co.'s Alternative.
Application was, it is said, made to sew
eral rich banking houses in New York,
among them DreNel, Morgan & Co, who, as
is well known, have the controlling interest
in the Southern Railway Company, and 1t is
asserted that they declined to take any steps
| in the matter unless they could in conjunc-
ton with the other houses whose aid had
heen sought, name the president of the b.
and o.
After the collapse of John II. Inman's Rich
mond Terminal scheme the bondholders of
the Richmond and Danville system appealed
to Mr.. ]. Pierpont Morgan, the head OF the
banking house OF DreNel Morgan Sc Co. for
assistance in reorganizing the affairs of the
company. Mr.. Spencer who, upon retiring
from the presidency of the Baltimore and
Ohio, had become railroad export for DreE-
el, Morgan & Co, was sent by Mr. Morgan to
examine the condition of the Richmond and
DanVille system, and make report. Mr..
Spencer made a thorough personal inspec-
ticn of the Richmond and Danvilie main line
and its various branches, and upon his
favorable report thereon the reorganization
of the system was undertaken 10y the bank
ing firm.
He Forms the Southern System.
Mr.. Spencer was given the personal super
intendence of all the most important mat
ters connected with the details of building
up new corporation, and the result was the
formation of the Southern Railway Com
pany, whose lines now extend from Wash
inSton to New Orleans. and with ramifca-
tions in every state of the south, and reach
ing to almost every important city on the
Atlantic coast, as well as to the Ohio river
on the west, and ii is stated that IL will he
but a short time in all probability that the
passenger who so desires will he able TO
board train in Washington and 20 to the
City of Mexico without change of cars Up
on completing the work of reorganization
MIR. Spencer was chosen 10 his present posi-
ton of president of the Southern Railway
Company.
The Conjunction in This City.
The impression prevails among weIl-in-
formed railroad men. and especially those
who are familiar with the present manage
ment of the Baltimore and Ohio, that If
DreXel, Morgan g. Co. shall obtain the in
tluential voice in the direction of the Balti-
more and Ohio that now seems probable
the necessary link between the Southern
railway and that system will be construct
ed without delay, and through line es-
.tablished from New lork to New Orleans
to carry every variety of traffic, the Balti-
more and Ohio road being used from this
city to Philadelphia, and the Reading and
Jersey Central from that city to New York
as under existing arrangements with the
Baltimore and Ohio.
The Baltimore and Ohio road practically
has terminus in Georgetown, at the juno
ton OF Water street and the canal from
which branch road runs to a point few
hundred yards this side of Linden station,