Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-07-31
Matters Of Interest in the Busy Rail-
road World.
NO DIVIDENDS FOR TEE CENTRAL OHIO
Status of the Seaboard and South
ern Controversy.
I n T E r E STING GOSSIP

and affords the latter company the main
outlet for its trains between Bellaire and
Newark. Ohio, will receive no dividend at
this time. The reason for this, as stated
by the receivers, Is that the line has not
earned Its operating expenses and sufficient
besides to pay the interest on the bonds for
the past six months. The bonds on which
the default is made amount to $2.s59,91O,
and the half yearly interest to SIS. 1870.
Not long since the Baltimore and Ohio was
indebted to the Central Ohio bondholders
the sum Of about 100000, which was sup
posed to be on deposit in the treasury of
the Baltimore and Ohio at Baltimore and
subject to the call of the Central Ohio peo-
pie; but when Receivers Cowen and Muir
ray applied to the United States court in
Baltimore for permission to issue $s.4OO.OOO
OF receivers certificates the Indebtedness to
the Central Ohio was enc of the items
which was named as being desirable to set
tie. AS the dividend due August l is to he
passed it is assumed in banking circles
that the other debt referred to has been
provided for. The receivers of the Balti-
more and Ohio will, however, pay out in
tercst amounting to $25O,OO0 on the bonds
of the Pittsburg division and $297 700 on the
Baltimore and Ohio consolidated mortgage.
The Cut-Rnte Injunction.
AS was foreshadowed in The Star of yes
terday Judge Simonton Of South Carolina,
which put stop, temporarily at least, to
the contemplated ruinous cutting of rates
On the Seabosrd Air Line and the roads of
the Southern States Freight Association
has modified his order SO that the Seaboard,
which had previously notified the inter-
state commerce commission, as required,
that 1t intended to reduce it's rates. can
comply with another rule which provides
that the commission must have ten days
notice Of any intended increase of rates by
the company proposing to make them.
The Seaboard has. in conformity with
these rules, given notice to the public that
at the close Of business on August the old
tariff will be restored. Meanwhile the :s3 l.;
per cent cut rate continues in force and
passengers and freight are being carried
between Baltimore. Norfolk and Richmond
at the lower rate.
Mr.. j. V. Patton. who for some years
past has been general superintendent of
the Pittsburg division of the Baltimore
and Ohio and also of the Pittsburg ana
Western Railway Company, which is in
the hands Of Thomas NJ King as receiver
has resigned the former position, in order
to devote himself entirely to the duties of
the latter office. The jurisdic ton of Thomas
NJ Fitzgei aid, general superintendent of
the B. and o. lines east of keyser, has
been extended so SIS to also cover the Pitts
burg division.
An Important Decision.
A decision which is Of interest to bankers
and bondhoders Throughout the country
has just been rendered by the supreme
court of Minnesota in a suit brought at
st. Paul by the United States Express
Company against the state treasurer Mr..
A. T. Koerner. The company sued for
$ll1 for freight on consignment of
sSa4'oo0 OF registered bonds. which. under
the rules of the company, was subject to
charge Of half a mill on the dollar of
value, the rate for shipments of currency.
Mr.. koerner, however, delivered the ship
ment to the company with the statement
that its value was 600 and paid a charge
OF but 20 cents for it's transmission. When
the company ascertained what was in
the package it sued to collect, insisting
have been held liable for the sum of
s2s4,OOO. The court, however holds that it
was liable only for the sum of $1,000,
which was the value of the package, as
certified to by the shipper.
The result of the decision will be- 1t is
expected. a considerable dminution of the
receipts of the exp ress companies from the
shipment of bonds
Reduction of Ten Rates.
The Southern Pacific and other railway
companies whose principal interests lie
in the prosperity of the city Of San Fran
cisco have joined in movement which
has for Its object the taking away Of the
greater Fart of New Yorks tea trade and
the making of San Francisco as the great
United States. Another object of the move
ment is to divert the great bulk of the tea
trade from the Suez canal and Puget sound
routes to the Southern Pacific and its con-
nections. all Of which, with the exception
of the Union Pacific are lending their CO.
operation to the movement
In accordance with the arrangement al
ready made, freight rates on tea will in a
few days be reduced to little more than
one-half what they have been for long
time past. Rates that are now $3.50 per
100 pounds will be reduced to ST. and the
prevailing less-than-car-load rates of s.
per 100 pounds will be reduced to Just one
half that amount, thus effecting a reduc-
ton which ranges from 80 1-3 to so per
cent. 1t is said that such a slashing OF
rates has never before been known in the
history of the tea trade in San Francisco
and the local tea jobbers are highly elated
over what promises to be the impetus for
a rapid growth of the commercial import
ance of That city.
The lines which have Joined in the low
tea 'ates are the Southern Pacific, Rio
Grande Western, Denver and Rio Grande
Colorado Midland, Burlington and Mis-
souri, River, Chicago, Rock Island and Pa
cifc, Missouri Pacific, the Southern Pacific
Company's Atlanta system via New Or
leans. the Atlantic and Pacific and the
Atchison Topeka and Santa Fe railroad
In connection with the several lines mem
toned the Southern Pacific Company has
issued special rate on tea from all Cali
fornia terminals to all points in the terri
tory extending from Colorado to Chicago
and points common Herewith and from
Wisconsin to New Orleans. The new rates
take effect tomorrow. No secret is made
Of the fact that the low rates have been
made for the purpose Of cutting into the
business Of the northern lines as much as
to afford San Francisco jobbers an oppor-
tunity to extend their trade
Convention of Locomotive Ffremen.
The Brotherhood Of Locomotive Firemen
will hold it's fifth biennial convention at
Galveston, Tex, commencing September &,
and the delegates expect to be in session
for at least three weeks.
RumOr Denied.
A rumor was today circulated in Baltf-
more that work on the construction of the
Columbia and Maryland electric railway in
Howard and Baltimore counties, Md, had
been suspended, and large number of men
thrown out of employment.
The attention of General Manager Schoepf
of the new road was called to the matter by
a Star reporter, and Mr.. Schoepf said the
rumor was not correct. 1.-The company has
not he said, been having any work done
in Howard county, except at the power
house in Leicester, and this will be pushed
to completion as rapidly as possible.
'In Baltimore county the work was" Mr.
CchOanf said $50 hot