Evening star., 1896-03-17
FUTURE OF THE 8. AND o.1
Talk Of . Possible Combination With the
Wabash System.
nm Interoceanic Line
baltimore Interests Opposed to J.
r. Morgan 4 Co.'S Plans.


timore stockholders Of the Baltimore and
Ohio Railroad Company to assent to the
plans Of J. P. Morgan & Co. for the reor-
ganization of the company Is manifested
move strongly than ever. 1t Is now said DS
raflYoad men usually well informed In re-,
gard ito Baltimore and Ohio affairs that,
unless the need Of ready money to meet
maturing obligations shall become more
urgent than is now probable the Baltimore
and Ohio may be able to get out of its diff
culties in much better shape than has re-
Gently been expected.
1t is the opinion OF men representing
Baltimore interests that the Morgan
scheme savors too strongly of desire to
crowd out the Baltimore stockhoiders ana
to protect only New York and London in
terests. The former holdings amount to
many millions of dollars, and in the plan
OF reorganization as outlined by ). Pier
pont Morgan & Co. these were to be treat
ed as though they had no existence. The
Baltimore interests are equal to about one
third Of the entire capital stock. and COM
prised in the list of holders are Miss Mary
holdings amount to $z,5OaOOo; the Johns
Hopkins University, Mai Alexander Shaw,
one Of the great coal operators OF west
ern Maryland; William F. Frick. the IA
liam F. Burns. president of the Eutaw
Savings Bank, and many others of equal
prominence.
May Combine With the Wabash.
Speaking of the conflict between the
banking house Of Morgan & Co. and the
Baltimore stockholders Of the Baltimore
ard Ohio, q Baltimore banker, interested
in the operations. said to Star reporter:
L believe the outcome of the troubles Of
the Baltimore and Ohio will be close
working arrangement between the Wabash
system, the property of George Gould, and
the Baltimore and Ohio.
when this shall come to pass, II it ever
does" said the banker, jay Goulds
dream Will come to pass. His ideal was to
nave a railway system from seaboard to
seaboard; freight being transferred from
the Atlantic to the Pacific or vice versa
without breaking bulk, without leaving the
tracks of the controlling company. Jay
could dreamed Of this, but his heirs may
realize it.
1t would take but a short time compare
lively for plan like this to be carried out,
and believe that in less than two years
she. baltimore and Ohio and the Wabash
VIII be practically one system the Goulds
having the controlling voice in its man.
agement. l believe that if the matter were
pushed the arrangement could be made in
side of year, and it would not surprise
me II this should be done
II IS an open secret that the Wabash
wants ar outlet to the Atlantic seaboard.
The b. and o. would give them lust what
they want. OF course, they would prefer
a more direct line to New York, but Bal
tmore and Philadelphia are good enough
seaboard points. The Wabash has lines as
far east as Defiance, Ohio. where it now
connects with the B. and O., and as a
matter Of fs Ct, the best part of the b. ana
Us freight business over its western ex-
tensions comes from the Wabash, which
can use it as wei. as any other That is
one reason why they want it,
Another line of the Wabash runs as
1ar east as East Liverpool Ohio. Suppose
he n hos
bination, how easy It would be to connect
the main line between East Liverpool and
Wheeling, W. Va. That would give them
a a shorter line and save them much money.
mats what the B. and o. has not been
dong. The B. and o. has been running its
western end and lake freight over two
lii es Part of it reaches its destination
via the Pittsburg and Western and part by
the Wheeling route The business could
be accommodated by either line but both
nave been operated, thus entaiing double
expense.
MY opinion is that if the deal here out
lined shall be 2onsummated. the consolidat-
ed company will let go of the Pittsburr
ana western, the Cleveland Terminal and
Valley and a few other northwestern lines
which Will be formed into an independcnt
company, or, perhaps. .he Vanderbilt lines
will get them.
1T is believed that the Pennsylvania
company would not interfere with this
scheme. That company does not want the
Il. and O.-one reason for which is that II
Is at Dut rev important points that the
roads enter into competition. and If thev
should attempt to interfere it is believed
the Wabash could defeat them
of course, 1t will require money to ac-
eomplish the above results, but this the
Wabash always has
The Baltimore Committee,
AS now constituted the Baltimore COM
m1ttee selected to look out for the interests
or Baltimore holders, is composed of Major
mt
{. Morton Stewart, T. Edward Hambleton,
James l.. McLane, Derich Fahnestock,
Joshua G. Harvey ana William A. Fisher.
The feasibility of reorganization of the
Baltimore and Ohio along the lines follow
ed in part by the Richmond Terminal now
the Southern Railway Company has been
discussed in some quarters. This would
provide for a consolidation of all the lines
identified with the B. and O. system into
the parent company. In support of such a
scheme it is urged that better and more
economical results can be obtained by
centralizing the management in one com
pany, with single board of directors and
but one executive department.. At present
several portions of the Baltimore and Ohio
system have separate organizations, with
their own general officers including the
Baltimore and Ohio Southwestern and the
Pittsburg and Western.