New-York tribune., 1896-03-29
PLANS FOR THE B. AND O
REORGANIZATION MAY BE COMPLETED
THIS YEAR.


SOME NEW LIGHT on THE NEUTRALITY-SUSPICIOUS.
MON STOCK QUOTATIONS. FOR THE WEEK.
The lowest price for the common stock OF the
Baltimore and Ohio Railroad-the preferred is not
dealt In on the Stock EXchange-was reached on
March g. when 1t sold at 49, Yesterday the stock
which had been steadily but slowly advancing
touched 10 and closed a, IS. which was gain Of
3-S per for III. week. ard ) 5-S since the
covery began.
1t is the intention to make the reOrg lniza ton Of
the Baltimore and Ohio Railroad quick op-
Grafton as circumstances Will permit. Members OF
the Reorganization Committee believe II can be
completed within the present year. While the gen.
eral condition OF the property IS bad. investigation
has shown II to be bad at first supposed
The circumstances attending the receivershiD have
not hitherto been understood. The facts that
when the four new New York directors entered the
Board. early In the winter they provided money
for the company the strength OF statements
made by the then president and the chairman OF
the Finance Committee. Very there
second call for money. and It was received with
great surprise by the New-York directors.
AS It was evident that they had been misin-
formed as to the state OF the companys finances,
the New-York directors refused 10 furnish more
money until they had satisfied themselves as TO
the exact nature OF the situation. The president
resigned. and was succeeded by John X Cowen,
who caused financial statement 10 be com
piled, ana tnlS was subsequently confirmed oy an
examination made for the New-York directors by
Stepnen Little, the expert accountant.
Tne statement disclosed that ordinary sum
would suffice for the company, and 1t agreed
after consideration by the fun Board OF Directors
that a rece.versh!p was advisable. The Board
formally designated the New-York directors a
Reorganization Committee, with power 10 add 10
their number. which has since been done.
The statement compiled for President Cowen and
the examination by Mr.. Little covered only the
books \ general investigation OF the condition and
needs OF the system IS now under way and II will
he the basis for the plan OF reorganization In de-
termin!ng the fixed charges II Is frst necessary
TO find out the true earning capacity or the road.
and with that end In view II VIII without delay be
supplied with adequate equipment one instance
Illustrates the position OF the road In this respect
to supply d shipper OF lumber with 100 cars
month He got out lumber accordingly and hauled
IL TO the railroad, but he could secure only twenty
cars month, and the result was that his busi-
ness went 10 another line. An expenditure OF be-
tween 100000 and 100000 on equipment Is re-
Qured.
The question OF cutting off branches connec-
tions is receiving serious consideration There are
feeders which show deficiencies In their own opera
tons, and these have to be met by the Baltimore
and Ohio company. but the profit on the haul over
the main line OF the traffic they supply makes II ad
this time no decision to eliminate any OF the SUBJ
adiary lines has been reached.
The Baltimore Security Holders Committee was
organized prevent. II possible. the ultimate TAX
ing away from that city OF the control OF the Balti-
more and Ohio. II not formed to oppose the
Reorga nization Committee. 1t IS reasonably
tain however that the control OF the property VIII
pass to New-York The cooperation OF the foreign
interests with the Reorganization Committee is ex-