Evening star., 1896-07-07
Anxious for the Report of the Expert
Accountant on the B. and @.
RELATION OF TIE NORTHERN PACIFIC
How It Will Bring Passengers
Quicker From the Pacific Coast.
AS TO OTHER ADS

countant Little on the affairs of the Bal
timore and Ohio Railroad Company have
not been made known to the Baltimore
members of the reorganization committee,
and there are some persons who would like
to know what Mr.. Little really has had to
say on the important subject who believe,
or say they do, that the much-desired in
formation will not be officially learned by
any outside of the New York syndicate
who employed Mr.. Little to make the in
vestigation.
Speaking Of this matter to a Star reporter
yesterday, a member Of the Baltimore re-
organization committee said: I'VE are ex-
pecting Mr.. Little's report daily and it is
awaited with much interest 1t WILL how
ever, probably not show anything especially
new. We all know that the management
during the administration which controlled
Its affairs from the latter part Of 1SSS to
November last was very bad; that un-
profitable purchases and alliances were
made; that bonds were indorsed and obi-
cations undertaken which entailed heavy
losses; that dividends were not earned, and
that the statements and reports were at
least somewhat strained to show favorable
results; and the questions confronting those
who are the holders of its securities are:
Is the Baltimore and Ohio Company able to
earn Its present fixed charges and such ad-
dltional charges may be necessary to
place upon the property? and how can the
company and its property be reorganized,
SO as to protect the interests of all con-
Cerned?
Some Interest Payments Defnulted.
ITO bankers the fact was somewhat sur
prising that while the receivers of the
B. and O. met most of the more important
interest payments falling due July 1, they
defaulted on Columbus and Cincinnati Mid
land first AVS, which are indorsed by the
Baltimore and Ohio and the Central Ohio
Company, Notwithstanding the Baltimore
and Ohio owes the Central Ohio 100000.
and 1t Is, of course, well known that the
dividends on Baltimore and Ohio first and
second preferred stock, in the first of which
the Johns Hopkins University is interested
to the extent OF 81, 100000, were also not
paid"
The counsel for the trustees of the uni
versity have brought to light a precedent
which, according to their view of the Ques-
tion, supports the contention Of the trus-
tees, and, indeed. all the other holders of
the B. and O.'s $3,O0O.O0O of first preferred
stock, that they are entitled to receive
their dividends out Of the gross profits of
the company.
The case referred to was that Of Daniel K.
Stewart OF England. who was the owner
of 145 shares Of Virginia and Tennessee
Railroad Company guaranteed preferred
stock. Default was made on the interest.
and Stewart took the case to the United
States circuit court for the eastern district
of Virginia, and obtained verdict in his
favor. The Virginia and Tennessee road
was division of the Atlantic, Mississippi
and Ohio, now the Norfolk and Western,
and the latter is, 1t is stated, still paying
interest on the stock.
Slowly but surely and almost day by
day, the plans Of Messrs ]. p. Morgan &
Co. and the syndicate of bankers who are
associated with that house to build up the
greatest system of railways in the world
under the actual control of a single master
mind are believed to be developing, md
the recent appointment of Mr.. Edwin Win
ter president of the new Northern Pa
cific Company by the reorganization COM
mittee at the suggestion, it is said, of Mr..
Morgan is believed to be an event of much
greater significance than has SO far been
attached to it.
Edwin Winters Appointment.
A prominent Baltimore ami Ohio official,
in referring to matters that are now trans
piring in the railway world, said: 1T was
as general manager Of the Omaha road
that Mr.. Winter attracted the attention Of
Mr.. Morgan, and 1t is stated that his Sc
lection as president Of the reorganzed road
Is in the interest Of a big project to make
the Northern Pacific the greatest trans
continental road on the American conti-
nent.
ut is a well-understood fact that the
VanderbtltS control the Omaha road, from
which Mr.. Winter came. One of the first
steps to be taken, it is said, is to closely
ally the Omaha and the Northern Pacific.
Cars will be taken en- route direct for Chi
cago from a number Of points in the far
west over the Omlaa, and in return the
Omaha will throw all it's northwestern and
Seattle business to the Northern Pacific.
Through passenger traffic without
change of cars is also said to be down on
the schedule. and through sleepers will be
put on between Tacoma, Seattle, Madison,
and
make the trip of 1850 miles without a
change of cars.
THE Northern Pacific has already short
ened It's western running time, and with
the complete passenger service furnished
by the Omaha the trip couiI be made much
quicker than by any other route made up
of pooling roads. There will also be ar ad-
justment of running time between all the
various important points, so that direct and
immediate connections would be made in
Minneapolis with the Omaha trains bound
fer the east. This is, it is said, no small
item to Northern Pacific stockholders, as
the weSt-bound passenger traffic is enor-
nous each season, and of late there has
been a gradual increase In the excursions
to the Yellowstone National Park.
ITO reach the Atlantic seaboard cities
from Washington north to and including
New York, the route would it is expected,
be by the Baltimore and Ohio, via Wash
ington and Baltimore, to Philadelphia, and
over the Reading and Jersey Central to
Reading, as is well known, being already
controlled by ]. P. Morgan & Co.
This would give the passenger an oppor-
tunity to travel between New York and
Seattle with but one change of cars, and
that at Chicago.
THAT this arrangement would only bet
ter the condition Of the roads concerned is
apparent to those acquainted with the DIFF
ferent systems. The Vanderbilt lines do
not compete with the Northern Pacific.
The Missouri Pacific taps an entirely diff
ferent territory, and the Southern Pacific
reaches the coast 900 miles from the ter
minus of the Northern Pacific. The Oma-
ha is a southwestern system. It taps Chi
cago over the Northwestern line and ex-
tends to Nebraska and Kansas on the
southwest. 1t cuts across country from
southwest to northeast, but neither II nor
any of Its tributaries cut into Northern
Pacific territory.
''It can be seen that the pooling of the
business Of these immense lines and the
working for a common end would result in
much benefit to all concerned and no harm
would be done to their interests in return
1T is stated that of late the Chicago
Burlington and Quincy has been cuttins
into the Northern Pacifc's excursion busi.
ness in the northwest. through its Montana
extensions, and it is hoped that under the
proposed arrangement, above outlined