The Corvallis gazette. [volume] (Corvallis, Or.) 1862-1899, 1896-05-28


. full of the deal between the Pennsylva-
mia and the p, w. and B.
Inexpressibly mortified, chagrined be-
eyond measure, Robert Garrett deter
mined in June, 1885, to build line Of
his own to Philadelphia. First it was
necessary to get legislative permission
to enter Philadelphia. That seemed diff
fcult. The Pennsylvania had the pull
Of all its locomotives with the legisla-
ture of Pennsylvania and with the Phil
adelphia city councils. The Pennsylva-
mia fought Garrett with all it's strength.
But Robert Garrett, on his mettle,
got permission for his road to enter
Philadelphia in 40 days. It cost him
$500, 600. He paid his secret agents
we'll; he advertised literally; he ex-
pended large sums in fees to counsel.
There were those who insisted that
it should be spelled council.
The Pennsylvania road, finding that
Robert Garrett could get into Philadel-
phia, determined to patch up truce
with him. They agreed to pay him all
the liabilities he had incurred looking
to the construction of the road to Phil
adelphia. They made other agreements
that would have profited the B. and O. +,
and Robert Garrett decided not to build
the road. He estimated that the project
had already cost 100000. The Penn
sylvania was ready to pay that.
It had really cost .$s, ,00O,000 The
Pennsylvania withdrew from the agree
ment. The game was not worth the
candle to them. Robert Garrett built his
road. It proved fearful drain on the
B. and o. The road foated $17, 900, 900
of securities on the strength Of that road
between Philadelphia and Baltimore.
But large part Of that money was di-
verted to other parts of the B. and o.
system and was dissipated by peculiar
financiering.
The B. and O. found itself on the
brink of insolvency in October, 1887.
Drexel, Morgan & Co-which is to say,
J. Pierpont Morgan-advanced the mon
ey that delayed the day of reckoning.
But, before lending cent, Mr.. Morgan
demanded that Robert Garrett resign
the presidency.
Perhaps he had heard that Robert
Garrett, at that time, owned 140 pairs
Of trousers. 1t is extremely improbable
that old John W. Garrett ever owned
two pairs of trousers at one time.
Whether or not he knew about the
trousers, Mr.. Morgan surely knew of
Robert Garrett's eccentricities. In a
word, Robert Garrett's mind was un-
balanced. He was paretic.
Samuel Spencer, who was vice presi-
| dent of the Baltimore and Ohio, became
president in Mr. CARROTS stead. Mr..
Spencer is of the firm of Drexel, Nor
gan & Co., and he is fine railroad man.
He began to economize rapidly. He up
set all the traditions of the Garrett
management. He smashed Baltimore q
gods. All the Garrett family, all Mary
land, rose in protest.
Miss Mary Garrett, who,- of course,
inherited great fortune from her IA
ther, old John W., put her hand in her
pocket. She Loyalty paid off large part
of the roads obligations to Drexel, Nor
gan & Co. Then Samuel Spencer had to
go. Then came Charles +. Mayer as
president. His was an extravagant ad-
ministration. During it the once pros
porous railroad steadily sunk deeper and
deeper in the mire of floating debt, bad
bookkeeping and the payment of un-
earned dividends.
And it is said Stephen Little, the ex-
pert accountant who went to Baltimore
to examine the Baltimore and Ohio s
books, found the books doctored. There
are hints of journal entries that bear the
initials of the officer requiring them to
be made, thus to relieve the accountant
Of the responsibility.
Enhancement of the market prices of
securities is made on the books to appear
as income, and no change was made
when the value of the securities again
declined. 1t is understood, too, that Mr..
Little found $50 engines laid mp, use
less for want of repairs.
John K. Cowen, who resigned his
seat in congress to become the Balti-
more and Ohio's president, is now made
receiver of the property for the United
States courts. He will continue to oper-
ate the railroad much as though nothing
had happened, but the creditors of the
company will be told when they press
their claims: You can do nothing. This
company is in the hands Of the courts. :"
New York World.