Omaha daily bee., 1896-03-01
INTO RECEIVERS HANDS
Confirmation of Rumors Concerning the
Baltimore 4 Ohio Road.
NO MONEY TO PAY MARCH INTEREST
President Johu X. Cornn aud Oscar
q. Murray Named RS Rcccivcrs--
officials Dcnied the Reports
TO the Lnst Moment.

BALTIMORE, Md. Feb. 29.-The Balti-
more & Ohio Railroad company. one of the
oldest and most extensive transportation
systems in the United States, and until re-
Gently one of the most profitable, has con-
fessed its insolvency and gone into the hands
of receivers. John X Cowan, its president.
and Oscar G.. Murray, its third vice pres
ident, will hereafter operate it for the benefit
of the creditors and bondholders under the
direction of the United States court. This
action was taken tonight after prolonged
struggle against the inevitable, and was the
immediate result of the failure of the di-
rectors to negotiate loans to provide for
interest and other payments about to be due.
For several years the road has been losing
money, and while the collapse. coming at
this time, was a surprise to many, but
few believed that 1t could be averted much
longer. Since the last regular meeting of the
directors two weeks ago, Major Alexander
Shaw, chairman of the finance committee,
and President Cowan have spent n great deal
of time in New York, endeavoring to borrow
enough money to provide for large floating
debt and payments of interest amounting to
$4,000 falling due on Monday next. Mr.
Murray, the other receiver, who had been
third vice president of the Big Four system
was invited to accept similar position in
the Baltimore & Ohio service. He con-
sented, and has since been acting In that ca
pacity. Mr.. Cowan is also a member of
congress from the Fourth Maryland us
trict, and is the leader of the democratic
opposition to United States Senator German.
He is 81 years old and native of Ohio.
The Baltimore & Ohio system includes
2,065 miles of railway, extending into all parts
Of the country east of the Mississippi river
1t was one of the first railways built in the
United States, and for many years was con
sidered the most reliable and profitable. I'm
der the management of the late John w.
Garrett OF this city 1t attained an enviable
position among the Understanding and divi-
dend paying lines in the country, and its Sc
curities were. looked upon as git-edged Its
stocks and bonds are largely held for in
vestment purposes in this city, where the
recevership is looked upon as almost a pub
lie calamity. Johns Hopkins university Is
one of the largest holders of its preferred
stock, and the loss of revenue from that
source will be keenly felt by the institution.
The stock OF the company is $50, 900, 900, di-
vided follows: First preferred. $4,000, 900;
second preferred, $200O,O0O; common and
scrip, $25, 100000. Its bonded indebtedness,
according to Poor's manual fer 1895. is $75,-
10000 and its floating debt is thought to
be between 900 and Sl2,0OO,OO0. 1t
owns and leases twenty-nine different roads
in Maryland, Virginia, West Virginia, Penn
sylvania, Ohio and Illinois. including some
or great Importance. Inc Baltimore S ONO
company Is the guarantor for rents amounting
to 81, ,157 $50 ON leased lines, and for interest
on bonds in double that amount. Its charter
was granted in 1927, and some of the great
est historical events of the last century CEN
ter around 1t.
Charles F. Mayor, who succeeded John w.
Garrett as president, held the place for five
years, until the election of Jonn X. Cowen
to the presidency, few weeks ago.
NEW YORK, Feb. 29.-Interest in the ap
parent elimination of the crisis in the af-
fairs of the Baltimore & Ohio road dom-
yesterdays stock market. The stock closed
at a net decline of 13A per cent for the
week, the fives of 1925 at loss of 14la cents
and the consol fves of 1888 were offered
down to 81, sellers, as against 106 the last
previous SALE Rumors unfavorably affecting
the financial credit of the company have
become an old story in Wall street during
the past year, and have been set down by
officials of the company to bear operators
both here and in London. The non-payment
of the obligations of the company has been
repeatedly predicted, but upon each occasion
the money has been forthcoming, and within
the last few days President Cowan has been
heard from to the effect that March interest
had been provided and that there was
fair prospect of a satisfactory readjustment
Of the company's affairs. syndicate was
recently formed to prepare a plan of reor
ganization, involving the issue of a collateral
loan for another three years to take up the
floating debt of the company. PROPOSE
ton had also been considered to establish a
line to be called the Baltimore G. North
western, embracing the PittsDurg G. Western
and the branch of the Baltimore & Ohio
from Akron to Chicago Junction. All of
these projects were to be conditional upon
a satisfactory report by Expert Stephen Lit
tie as to the financial condition of the COM
pany. The pronounced weakness of the Sc
curities has predsposed the traders to take
the worst possible view of the outlook: and
officials of the company, both in Baltimore
and in this city, were today mute when in
terrogated as to the condition of affairs. Up
to the close of business 1t could not be
learned positively whether the March in
terest had been provided.