Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-12-26
OF GREATEST MAGNITUDE
The Latest Deal Reported in Railway
Circles
What Is Said of the Rumorcd ALL
ance Between the ID. and o. and
the Southern Lines.

TodayS Baltimore American says regard
ing the reported plan of alliance between the
Baltimore and Ohio and Southern railways:
The uniting of the Baltimore and Ohio
and Southern would be deal of the great
est magnitude in contemporary railroad
history. 1t would point to the bringing
together of New York and Mexico on the
rorth and south, and Chicago and st.
Louis on the west, and the Atlantic sea-
board on the east, with the Intervening
vast gridiron territory, all within the
scope of stupendous railway system.
Inc actual physical connection could be
accomplished at or near Washington with
inslSnlhcant trouble in the way of con-
struction and track-laying
ine financial support guaranteed by the
carrying through of the arrangements dis
cussed would eliminate the present allah
sorbins problem of the Baltimore and Ohio's
noating debt. the funding of which has
i Seetneu 10 De the only plan to meet the ex-
listing emergency.
Local members of the Baltimore and Ohio
directors committee charged with the task
OF arranging future plan of management,
anu also OF providing a successor to Presi-
cent Mayer, assert that the committee has
thus far absolutely taken no action, and
nave not even held a meeting. They further
disclaim any knowledge of any plans en-
bodied in the gossip of the street.
1t was admitted by a Baltimore and Ohio
director, however last night that the merg-
ing oil interests on the part of the two great
Hallway systems mentioned would be a mas
terstroke of policy, and this tends to con-
firm the idea that the dominant Baltimore
interests in the Baltimore and Ohio would
not be unwilling to meet New York finan-
GERS half way in working out a consolida-
ton.
1t is conceded all around that the New
YORK members of the recently appointed
Baltimore and Ohio committee will be a
mighty power in the committees delibera-
TONS and what they may be doing at their
end OF the line can only be inferred.
Denials About the Ii. and O..
Mr.. Alexander Shaw, chairman of the
finance committee of the Baltimore and Ohio
Railway Company, last night denied a
reWly revived statement that a receivership
for the road is contemplated. Several
questions will have to be settled" said he,
before We are ready to select a successor
to MIR. Mayer. You may say positively that
no man has as yet been agreed upon. You
may also deny specifically that the January
interest on the bonds of the company will be
passed; that receivership, either friendly
or otherwise. is contemplated; that the Bal
tlnore and Ohio and Southern railway sys-
TENS are to be consolidated. You may also
deny in the most positive terms the state
ments that there had been an irregularity.
in the manner of keeping the books of the
company"
Samuel Spencer, president Of the Southern
railway, was seen at his house in New York
in reference to the rumor that the Balt-
more and Ohio railroad and the Southern
road were to be consolidated. Mr.. Spencer.
who was formerly president of the Il. and
o., said that there was no truth whatever
in the rumor. Further than making this
denial he refused to discuss the affairs Of
the ROAD.
The d. and O.'s Condition.
The New York World, in an article pur-
porting to describe the condition of the Bal
riy md
The corporation is now without a presi-
dent. When President Mayer left that po-
sition few weeks ago he did so under
pressure from a minority on the board of
directors. Behind Mr.. Mayer were the Gar
rett interest, the Johns Hopkins University
interest and the entire local following in
the company. They mustered a good ma
jority- Opposed to this group was what is
known as the New York contingent. headed
by Louis Fitzgerald, president of the Mer-
camille Trust Company. This small group
in the directorate was powerful because it
could command ready capital, which the
others could not.
This put the members of that group in a
position to dictate, and the first order given
was that President Mayer should get out
Under his regime the traditions of the Oldest
railroad line i'll the country were well sus-
tained. 1t was Trayers. the banker wit.
who said long ago that Baltimore and Ohio
accounts were kept on pencil on a slate with
sponge at hand. II has been. even for rail-
Toau experts, pracucal lmp0Ssibility to
work out the financial standing of the COM
pany from the reports offered, and as year
by year the systems seemed to change the
task has been made still more difficult
Now the day Of reckoning has come No
more money can be borrowed. There must
be a rational and economical expenditure
of fifteen to twenty million dollars on proper
terminals, and this the New York men can
and will furnish, but only upon their own
terms What these terms are have not yet
been announced. How they can be carried
out when determined upon Messrs Fftz-
gerald and Blair etc. have not yet decided.
The treatment will be drastic. Baltimore
and Ohio being a property of a very COM
pick character. extending through twelve
states and having interested off-shoots by
the score the work of finding out just where
they stand Is something enormous for the
reform control There is nearly slJOO00OOo
in funded debt and over $40 900 600 in capI-
tai stock of main and branch lines to be
taken care of.