The Republican. [volume] (Oakland, Md.) 1877-current, 1896-03-05
MR.. COWEN SPEAKS.
The Receivers to Operate the r
Until Plans for REORGANIZATION
Are Completed.

l IA
About dusk on Saturday, aft i
special meeting of the BaltinA L
and Ohio directors, General Attk !.
ney Hugh l.. Bond, on behalf Ut
! the company, applied before Judges
| Nathan Golf and Thomas J. Norris
for the appointment of PresideiA
John X. Cowen and First Vice
President Oscar G. Murray as re-
ceivers. =
The court immediately granted
the application and the two officers
qualified, giving bonds of $20O,0
each.
Steps will at once be taken by
special committee to accomplish, a
reorganization of the company.
The following statement WIS
given to the press by Presidert
Cowen:
GA committee composed efltne
New York directors of the Balti-
more and Ohio Railroad company
has been engaged for some time on
a plan for funding the floating debt
of the company and to provide ad-
ditional capital. Until this morn
ing there was the strongest belief
upon the part of the committee and
the members of the syndicate who
have been aiding the company that
the plan proposed would be adopted
in time to meet the company's
requirements.
CATER full consultation, however,
it was found to be inexpedient to
carry out all the details of the plan
without the aid of the court, and
for that reason it became necessary
for the railroad company and the
Mercantile Trust company, of New
York, representing the syndicate
which has been aiding the company,
to begin a friendly suit for the
appointment of receivers, who
should hold the property and oper-
ate it pending the contamination
Of plan for its reorganization.
ACTION OF THE BOARD.
"Prior to the commencement of
the suit, however. the whole matter
was laid before the board of direct
ors of the company, and they unan
imouslY passed a resolution author
izing the companY's officers to
confess a judgment IN favor of the
Mercantile Trust company for the
amount Of the debt due to that
company, held by it on behalf of
the syndicate, and also consenting
in the appointment of receivers for
the property,
"The action was taken after full
elaboration, and after the presen-
tation of the whole case to the
directors. The board at the same
time passed resolution requesting
the New York mem bers of the
board, namely: Messrs. Lewis
Fitzgerald, Eugene Delano, Edward
R. Bacon, Rowland Davis and Will
liam A. Read, who have been pre-
pairing a plan for the rehabilitation
OF. the company without the fore
closure of any of the mortgages, to
organize themselves as a committee
with power to add to their number,
or to associate with them commit
tee in London for the protection of
all the security and shareholders,
with a view to the immediate reor-
ganization of the company and its
affairs"
As stated, these gentlemen have
been engaged for some time upon a
plan for the rehabilitation of the
company and its finances, they will
continue to this effort and they
expect to have appointed in London
another committee of security and
shareholders to cooperate with
them in the presentation of plan
which will have for its object the
extinguishment of the entire float
ing debt Of the company and the
furnishing of new capital and the
placing of the company's finances
upon firm and stable basis.
RECEIvERSHIP NECESSARY.
The board of directors and the
] nfy e Al