The times. [volume] (Richmond, Va.) 1890-1903, 1896-03-06
MORCIN IN CONTROL
ofthc Bankrupt Baltimore and Ohio Rail-
road.

men. will he made that the rcorgahl~'-
ton OF the Baltimore and Ohio railroad
Is in the hands Of Morgan q CO., ana
that the plan for the rehabilitation oil
the property will be- drawn up by that
nrm.
The story or how this was brought
about Is an interesting chapter in cur
rent financial history, and illustrates per-
fectly the methods OF the most mas
terful financial dictator Wall street has
ever known.
Seven or eight years ago that hTm
took I'm hand the Pittsburs and West
ern railroad reorganization, and, just
ss In the Richmond Terminal deal, SAMUEL
Spencer of the Morgan house, took inc
post of president TO carry out the plans
In 1855 after the majority Of the PITTS
burg and Weston stock had been turn-
cd into the possession Of the Baltimore
and Ohio. Samuel Spencer took tho post
OF president. and did some very severe
pruning TO the mass 81 worthless assets
which the old u. and -. had accumu-
lated on its books. His methods did not
suit ;hc Baltimore crowd and m. Car
rett and Johns-Hopbins estates. so in 1889
President Mayer took the presidency as
the creature OF those estates.
From that day TWO sets OF acconpis
were kept. one, "a mass OF unreliable
Disrepre sontation of facts, in the com
pany's Offices. at Raltinoe and the other,
vigorously correct. Ia the priN,e ac-
counting department Of Morgan q co.
That firm knew 10 dime how the Mayer
MANAGEMENT were borrowing cash TO pay
dividends. how subordinatcs interested In
nominal branch fecders-which were real
" suckers Cf the main liBe-wcrc milking
tho property.
II was known how the Baltimore &
Ohio was piling up debt at the Mefcan-
tile Trust Company, and as That IS
Russell Sage property. Morgan smiled
for Morgan does not love Sage. IL was
known almost to d day when the end
would come. So on Thursday last when
President Cowcn. with all his Baltimore
& Ohio directors about him, were won
dcripg where they we're Ia get the mill
lion and half rep ired for obligations
falling due on Saturday, they were agree
ably surprised when Mr.. Morgan came
IN about 4 O'Clock. lie stayed only
few moments, listened 10 their request
for n lean ana, hurrying off, cheered
them with the remark.
Gentlemen, j have not time now 10
80 into details, but If YOU decide to go
YOU for 100000"
1t looked like n very generous offer,
ond the delighted directors so construed
It, Early Friday morning they started
out 10 get the other half million. They
went TO the boss mOney-lendcr of Wall
street and they told him they wished
him 10 supplement Mr.. Morgans loan.
Would they kindly let him see Mr.. Nor
gan's proner?" he asked. ana then II
s.
a mans word of mouth was not much Of
n document 10 show. The borrowers
then started TO get line from Morgan.
He was not down. his secretary said, but
might be later. The day was spent and
wasted i'm waiting.
Early Saturday morning a quartet OF
railroad presidents climbed the Morgan
stcop ana pulled the Morgan door-bell
They met the Morgan butler who told
them that Mr. Morgan was al home. but
lay his doctors orders was not TO see
anybody lie had 4 bad cold ana was
not to be- heated Up by talking shop.
For throe-quarters of an hour those
railroad men begged and pleaded and
poured the affairs of. the b. q .. into
that imported flunkeys ears. once he
actually started towards the staircase
as III 10 carry up the note they had
penned, but his head as "A butler was at
stake. lie hesitated and then lost.
ono Of the quartet is major-gen-
erai as we'll as q president. and he sug-
Eested a grand rush and G. stormins OF
the Morgan bedroom. That butler.
whose middle name Is Casabianca. stood
his ground and the quartet crowded INTO
their solitary cab and headed for Wall
street detected ami dcspei ste.
u was II o'clock when they reached
tho shadow of Trinity and reported their
failure to their waiting cOnfreres. Then
thcre was some lively sprinting for a
loan Of million and q half Every one
appealed to wanted 20 know about the
Morgan offer. why he had withdrawn
it, etc. for the World had already told
the public about that offer.
Minutes meant millions then, but ~
o'clock came, the business day was over.
amt there was no cash m hand 10 meet
the interest due March LIST There was
nothing TO do but throw up the sponge
and a messenger ran for the office OF
Alexander & Green.
Mr. G.. =. peming. of that firm. joined
President Cowcn, Of the Baltimore and
Ohio; President +. K. Bacon, of the
Pittsburg and Western and other Ci-
rectors Of the defsultng railroad. They
were rushed TO the Liberty-street ferry,
across which a special locomotive and
party through to Baltimore.
on the train the papers were drawn
up to submit 10 the judges, who were
waiting ON telegraphic orders TO name
the selected receivers.
Mir. Demlng kept on TO Pttsburg 20
act there. Mr.. Green, who was in ST.
Louis. was wired 20 hurry up to Chicago
and make application IN that city, ana
on Sunday morning the whole world
know that one OF the great American
trunk lines. with more than 1900 miles
Of road and upward Of soc 900 Of Sc
curities, was bankrupt.
1t was proposed by the still cuileless
directors that they should resolve them
selves into a reorganization committee
and put the road back again on healthy
financial basis They cabled TO London
10 have a committee named there
once again there was d chez kmatc from
the Broad-streot bankers. \ notice was
sent out in the name of one of Mr.
Morgan's syndicate friends Offering to
buy defaUited coupons al par. These are
a prior claim. and could be used 20 push
the road 20 a prompt foreclosure sale.
The directors halted. AVID yesterday
President and Receiver Cowen was I'm
town TO find ont just what Mr.. Morgan
wanted, as IL was very evident that he
did not propose 20 let them get along
without him The papers drawn yester-
day viii give him absolute dictatorship
He win have his own way in everything
There win be committees. but he win
have the veto power. lie viii name his
own circle Of consulting doctors. and
enc viii be G. n. Coster of his own
firm, and Samuel Spencer win again come
To- the 'front.' with his Intimate LnOwl-
edge OF Baltimore and Ohio.
Already II limited that the stock
assessment Of Atchison viii not be a