Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-04-27
One of the Causes Of the Condition
of the Baltimore and Ohio.
ITS SHOPS CLOSED UP
The immense Outstanding Ob!iga-
tons of the Road.
T II E G.. AND o. CAN A L

The excitement produced throughout the
country by the expose in The Star of Mon
day last in regard to the disappearance of
a large amount of securities from the treas
ury of the Baltimore and Ohio Railroad
. Company has not subsidized, and the result
of the examination of the company's af-
fairs so far by Expert Accountant Little
has Influenced Mr.. Oscar G. Murray, one of
the receivers, to say that there may have
been honest mismanage cement during the
years 1SsS-.ta, the period covered by the adj
ministraton Of President Mayer.
This admission on the part of Mr.. Murray
has set many of those who We're converSant
with b. and o. matters during the. years
referred to to thinking, and a gentleman
who then occupied high position in the
company's service at the Central building
in Baltimore related a day or two ago in
Baltimore to a Star reporter the following,
winch, he said, were among the causes
which have brought the B. and o. to state
Of insolvency, and into the hands Of re-
ceiveIS:
las Soon,' said he, "as Mr.. Mayer took
charge of the E. and o. president policy
OF eccnomiZinS was entered upon. There
was hardly man in the employ of the COM
pany below a boss of some sort whose
wages were not cut in some instances, and
they We're not few, to less than dollar a
day, and out of this pitiful sum the enploye
was compelled to pay portion to the Relief
Association, the predecessor of the present
relief department. The repair shops from
one end of the system to the other were put
on snort time. the men often being refused
PERMISSION to work more than two days a
week, and this In spite of the fact that cars
We're, in the natural course of events, con-
stantly needing repairs, and that the COM
panys shops were the proper place to do
this. At the same time the force OF bosses
was not reduced. and there were frequent
occasions when there would he twelve bosses
and subbosses in 4 department on duty and
not more than ten men at work
Outside Company.
Notwithstanding the lumber could be
bought for cash az i worked UP into cars
for at least % per cent less than they
could be bought On credit from the car
construction companies, Mr.. Mayer seemed
to think that the longer the day of pay
men; could be postponed the better it
would be Tor the company.
Following out this idea of Mr. Mayer,
the South baltimore Car COMPANY was or
Ss.niZed. Among its stockholders We're Rob
ert Garrett, f. c. Latrobe, the then mayor
OF Baltimore, Ryan and Mcdonald, prom
inent contractors, and number of the
officers of the Baltimore and Ohio Rail
read Company, not, however, including Mr..
Mayer, and as soon as this company's
shops were ready for operation the COM
Iany's own shops We're closed and large
contract Tor new cars given to the former
Concern.
ITO pay for these cars bonds, known as
car trust series, and running for twenty
years, were issued, and interest at the
rate oil SIX per cent annually paid every
SIN months. At the same time hundreds
of cars belonging to the E. and o., which
needed greater or less repairing to put
them into serviceable condition, were al
lowed to stand on. side tracks in almost
every big yard owned by the company,
while the managers were using cars from
other lines, as rapidly they could pick
them up, and paying three cents per mile
to the owners for their service.
Every large shipper over the B. and O.,
especially those engaged in the coal trade
Knows that for years it has been a matter
of practical impossibility for him to get
as many -ars as he wanted to bring his
products to eastern markets. If he want
ed twenty cars to carry coal from the
mines near Cumberland, Nd, to Washing
ton or baltimore. as the case might be- he
was fortunate if he got five. The effect of
this was to cause a loss in freight charges
to the 3. and o. in the aggregate of mil
lions of dollars, and to contribute in no
small degree to much of the dissatisfaction
which has existed among the miners in
that region during the last twenty years
by in this way depriving them of the OPP
portunity to earn a living for themselves
and their families.
"A somewhat different policy was follow
ed in purchasing locomotives. though the
result has been the same. 1t was found
that the Baldwins of Philadelphia were
willing to sell engines to the B. and 0.
and take their pay in ten yearly INSTALL
ments. the B. and o. giving it's notes, bear
ing interest. for them. At once the finely
equipped Mount Glare shops were closed
for building purposes. and only enough
men retained to do the ordinary repairing
TT should not be supposed that the South
Baltimore car works received the contract
for all the new cars bought by the B. and o..
but 1t Is fact that they not only built a
great many cars for it, but did a great deal
of repair work, which, before those shops
were opened, went to Mount Clare.
These are but two of the reasons which,
1t is believed, have assisted in piling up the
enormous debt of the 3. and o. and forcing
1t into bankruptcy, and many others could
be mentioned. Whether the public will ever
know the exact truth from official sources
cannot as yet be stated"
The COmpany's Books.
AS heretofore stated in The Star, the Bal
timore committee of reorganization is do
ing all in it's power to ascertain the precise
facts in regard to the financial affairs of
the B. and o., and Mr.. John K. Cowen. one
of the receivers, has assured the committee
that it can have copy of Expert Little's
report as soon as he makes the result of his
Investigations known. The committee is
not, however, satisfied with this promise,
and as heretofore stated In The Star, wants
to make an examination of the company
condition through an expert employed by
Them and here that part of the matter rests
at present
An official of the company, who has been
in the service for more than forty years,
maintained, in talking with a Star reporter
an evening or two ago, that the 3. and o. IS
books are all right, and will be found upon
examination to have been properly kept,
but Expert Little said that the books do not
show anything, and that If there has been
overpayment for goods Of any kind or of
labor, etc, it will have to be looked for else
where, and. in order to get at all the facts