Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-11-11
Financiers Discuss the Proposition Of
the Baltimore Capitalist.
DIFFICULTIES IN TEE WAY OF II
Conflicting Belt and lexington In
terests Hard to ConciIiate.
A FORECLOSURE SUGGESTED

The interview which appeared in yester-
days Star with Mr.. T. Edward Hambleton.
the senior member of the banking firm of
Hambleton & Company of Baltimore who,
with his associates owns the majority of
the bonds of the Columbia md Maryland
railway and the majority of the stock of
the Baltimore and Washington terminals
of that line, which are the Belt and the
lexington roads in this city, occasioned
much discussion among those interested in
the latter properties and was subject of
animated gossip In financial circles this
morning.
The idea of holders of first mortgage
bonds waving their claims to priority of
lien on such valuable properties the
Columbia and Maryland railway and max
ing plans to an issue of other first mort
gage bonds, which would be necessarily
for large amount when the expenditure
TO be made from it, including the compile
. ton Of the line is considered was regarded
as somewhat Utopian, but several gentle
men who have been familiar with large
ventures in the past believed that even
such a. plan would be entirely feasible If
pushed by capitalists who really meant
business. 1t was admitted that great
corporation, such that contemplated in
the outline given by Mr.. Hambleton, would
command attention from investors of large
means who seek permanent fields of growth
for their capital but the prelimiEaries to
be settled before such a thing could be
brought about are regarded as possessing
so many vexatious ard obstinate problems
that it is thought to be well nigh i'm
possible for a solution to be reached to
even portion of them.
Some of the Difficulties.
In the first place, there many con-
fiietins interests to conciliate The owners
of the bonds of the Belt and lexington
companies are naturally watching their Sc
cLrities and tie properties which guaran
tee the payment of their interest and prin
ciIdl with Jealous eyes. The minority
stockholders of both corporations have IA
deep-seated conviction that they were bad
ly treated in the deals made some years
ago, when the majority of stock was pur
chased and trar sferred to the Philadelphia
sy Indicate, and the present owners of the
majority .tock, or the representatives OF
the bankrupt company owning 1t. believe
they have paid enough out of their pockets
toward meeting the running expenses and
the fixed charges OF the roads, and are ID
clined to call halt.
Lo.ses Of the Roads.
The Philadelphia syndicate expended
considerably over $l00,OD on the roads
while in their control without calling Oh
the minority stockholders for assistance i'll
any way. During the past fourteen months
the roads have piled up deficit together
of nearly S1U.WO more. Every day they
are earning nothing like enough to pay the
operating expenses, to say nothing Of fixed
charges, and receivers certificates must be
depended on to pay for the actual necessi-
ties, such horse feed and employees
wages. The interest on the bonds of the
lexington and Belt companies falls due.
respectively, in December and Janu-
airy. OF course, 1T will be entirely out
of the question to suppose that receiver >
certificates will be issued to pay that in
terest.
What Default Would Mean.
Such a course would be only robbing
Peter to pay Paul Consequently, unless
the plan of Mr.. Hambleton is shown to be
possible or some other measures are taken
to smooth down the differences and bring
about an amiable feeling among the nov
opposing factions there will be a default
of interest, and 1t is a settled fact that this
will be followed by foreclosure on tae
property. with all that such proceeding
means to the stockholders who own it.
Some people seem to think, and among
them are several large bondholders, that
the threatening aspect Of affairs could be
changed by an assessment of the stock
holders. When 1t Is considered. however,
that tine owner of the majority of the stock
i'll both companies. which Is TIE Baltimore
and Gainesville Construction Company, is
itself 4 bankrupt concern and in the hands
of receiver, it can he easily realized
whether assessment such as suggested
would be of use or not.