Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-06-09
B. & 0. Receivers Considering the
Johns Hopkins Debt.
LEGAL COMPLICATIONS ARE POSSIBLE
Some Interesting Inside History of
the Company's Finances.
T HN LIE A SEQ LIN E S

| Through ]. p. Morgan & Co., or houses
| closely connected with that great bank
| ing firm, they have provided for the
| payment Of such interest as appeared
| best to be met, and they have been,
or are certain to he, supplied through
| the issue of certificates with the necessary
| funds to pay for the new rolling stock re-
| Gently contracted for, besides some for
| which the contracts have not We: been
| awarded.
Unless, however there is a great change
| in the relations which exist between the
| management of the company and the trus-
| tees Of the Johns Hopkins University a
| legal nght Will be inaugurated by the
| former In less than a month, which may
| give the company more trouble than It has
| experienced in long time. Since it has
! become generally known that 81, 10000 Of
| Inc endowment for the university left by
| the late Johns Hopkins was in a single
| issue of 100000 bonds of the Baltimore
| and Ohio Railroad Company there has
| Deem much surprise manifested that such
an able and successful fnancier as Mr.
| Hopkins would invest such a large sum of
| money In one security and the trustees of
| he university, most of whom were personal
| TRENDS OF Mr.. Hopkins, and selected by
! MN TO administer the trust, have deter
| mined 1t is said, that they owe it to his
| memory to show to the financial world that
| Mr.. Hopkins was not unwise in making such
| large investment
Payment TO BE Demanded.
| An investigation has been going on for
| some weeks in Baltimore by the counsel Of
| the university in reference to the matter
| and 1t has been developed that although
| President John w. Garrett of the Baltimore
| and Ohio and Mr.. Johns Hopkins were on
| Terms OF the closest personal intimacy, the
| mortgage covering Mr.. Hopkins invest
| IN do for
Payment or per cent semi-annually out
OF the gross receipts of the railroad COM
| iahy. Inc trustees have, ii is understood
adopted this view and July / will demand
The payment of the coupons then becoming
| due, If not of those which have been over
| due Tor years past. 1t is now expected that
| Inc receivers VIII resist the demand, and
mat tne trustees of the university will at
| once take the matter into the courts When
| the end will be reached it is impossible to
| predict, but II the trustees win it will mean
| me comfortable addition, it Is said of
spN,tD to the treasury ~ the university
| 1t Is said that q number of other Balti-
| moreans who are holders of Baltimore and
ONO securities are encouraging the uni
NerSlty trustees in the course they have
adopted, and that if 1t is necessary for
them to come to the aid of the university
| during the fight they will do So
Startling Developments Possible.
| The relations of the Central Ohio division
| OF the B. and o. system, and one of its
most vital parts. to the B. and o. COM
pany are especially interesting at this
| time, and there may be startling develop
| ments in that direction in the course of a
| few weeks.
letter received in this city yesterday
rom a member OF the B. and o. reorgani-
Zauon committee contains the following:
| AS lar as Is known the coupons falling
| due March l en- Central Ohio first mort.
gage ~ per cent bonds remain unpaid
1 4 nrr fracr
| We're issue1 provides that on default for
| ninety days the trustee. on request of ONE
| fourth in interest of The bondholders, shall
| .ahe possession ana sell the property, de-
| clare the principal etc.
| AS the coupons on Central Ohio bonds
| have now been in default more than ninety
Gays, the bondholders can, if they choose
| take possession. 1t must be the intention
| OF the receivers to pay the coupons on Gem
tral ohio bonds. The Central Ohio road is
| 100 valuable to the B. and o. to run the
FISK or losing it, The B. and o. company
has shown in its annual reports that IN bos
| Deeh losing money in operating the Central
| ONO at the agreed rental and when the
| settlement comes it may be that an effort
VIII De made TO modify the lease In the
| case of the Parkersburg Branch G's and
| Philadelphia Branch 4ls's the limit of ID
| 1ault Is also ninety days and as the con-
pons matured in April. the MORTGAGES will
| mature II interest is not paid before July
| l. Messrs. Speyer & Co. purchased the
| Central Ohio coupons J. P Morgan q 20
| those of Parkersburg Branch and Brown
| Bros & Co. those of the, Philadelphia
| branch. PIMA
| The payment recently of counons fall
ing due on June l on B. and O. Terminal
| "a per cents, Chicago Division IS and
| Schuylkill East Side SIS would indicate
| mat the policy of the receivers will be to
| pay maturing interest on lines absolutely
essential to the integrity of the system
| and upon such properties as are self-sup-
| porting, II 1t Is possible to do SO.
Change for the Better.
/ There has been a great change in the
| policy of running the Baltimore and Ohio
| since thoroughly efficient and practical
| men nave been put in charge of affairs"
| continues the letter The train service and
equipment have already been wonderfully
| improved.
| The placing Of the B. and o. property
| in the hands of receivers was an i,uayoiG
| able misfortune The property had been
| run down physically and its credit destroy
| ed. The road will now be built up and mt
| IN nrst-class physical condition. 1t is hard
| ly possible that the new money necessary
| to improve and equip the property and r.
| l1eVe 1t from embarrassing fioa ting iudebt-
edness can come out of the earnings and
| 1t goes without saying that sacrifices must
| be made.
| But such sacrifices should fall r,bare
| they properly belong, on the non-produc-
tive and non-self-supporting properties
Power of the Receivers.
| The following, which is an extract from
| the order Of the court granting the receiy-
| ers authority to issue certificates of in
| debtedness, is understood to mean that the
| receivers can make as radical changes in
| the B. and o. system as they choose:
| Nothing in this order contained shall be
| held to be an election on the part of the
| court or It's receivers to assume or adopt
| any Of the leases or contracts under which
| the several lines of railroads came into the
| possession of and Were being operated by
| the Baltimore and Ohio Railroad Companv
| but the directions to the receivers as to
| any and all such lines of railroads are pro-
| visional only. The receivers are directed
! to keep separate accounts OF the earnings
| and expenses of all such leased and
| operated lines, and report the same The
| court reserves full power to deal with the
| custody Of such roads hereafter by them
| electing to adopt or surrender any or all of
| such leases or contracts and reserves full
| power at any time TO set aside or modify
| this order as to payments under leases or
| contracts, upon the application of any party
| in interest or of the receivers"
Genius is Hard Work.
|