Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1896-04-24

New ORR, APiii - ""''"9
49,. washington correspondent Of the
-.-~al telegraphs his paper as fol-
ofs:
~,s inner and secret details OF the
..s5ines that have brought the Bal
,.~,-a and Ohio Railroad Company to
t-smr-cy are known to Senator Cor
,f MARYLAND. who for one year
..a director Of the corporation. He
. elected together with Mr. Linahan.
r.l-imore and several others, for the
.,--s.s purpose of protecting the in
,...-.s7ts OF the State of Maryland and
--a city Of Baltimore.
amer the death of John W. Garrett,
- X COwan became the actual
rleer of the company, though Mr..
7...r- Garrett was nominally aSsOciat-
With him. This management enter
81 upon "a policy OF investment and
c.ati0u that alarmed the stock and
bo1llO.d1Is.
Trey undertook the herculean task of
c1--,ructiug telegraph system design
clio be- an active rival and competitor
5.-ha Western Union. They expended
about 10000 600 in this enterprise be-
t-s becoming convinced that they had
assumed q job of greater proportions
ru they could carry out. They also
established an express company.
WESTERN UNIONS BARGAIN.
The Western Urion gobbled up the
telegraph outfit az a small proportion
0tits cost. and the express scheme went
to tlc United States Company as a bar
gain counter purchase. These same
managers began the construction of
railway line 90 New York that has cost
u1 % The present time about $780,
vt
They looked in every direction for
nsv fields 10 conquer. They bought
railroad lines that became a dead
weight upon the company. This ap-
parent reckless conduct of the COM
pany S affairs so alarmed the authori-
lies o., the State Of Maryland and the
c.,y OF Baltimore that they determined
90 sen out the holdings Of the State and
c.F
The State OF Maryland Owsned ST.
100000 Of the preferred stock of the B.
IS %. Railroad Company. This was in
dependent and outside Of S550.000 in
tla Washington branch. which is sep
l-ate concern, the stock being separate
i classified.
COULD NOT SEE THE BOOKS.
The city Of Baltimore owned $1,000.
600 and the Johns Hopkins University
Sl.150,0O0 Of the common stock of the
company. The Garrett interests. to-
ge,her with the holdings Of personal
and financial friends. he'd a majority
OF the stock. and thus controlled the
company electing such directors and
officers as best suited their purposes.
Under the administration of John w
Garrett interest from 20 and 10 per
cen,. on the stock had been paid.
The manag mem. holding the power
of a majority positively refused to per-
mic the directors who had been elected
To- guard the investments Of the State
and city. 10 see the books or to have
any information with regard to the
financial affairs of the corporation.
Ilis arbitrary course Vas disapproved
ty Judge Dobbins. the representative
OF The interest of the Johns Hopkins
University, and he cast his influence
and his vote with the minority Sam
teI Spencer was chosen president and
he conducted himself fairly and impair
TALLY as To- the very imp0rtan, cues
ions then arising
With the aid OF Judge DObbins the
directors who were placed in the Board
i2 make secure the public holdings were
enabled TO order an invest gation in.o
i1e entire condition Of the assets. ex-
lent ureS and stocks and bonds SEN
a'or German. who was one of the inves-
usatorS. says the developments were OF
startling character.
The DIRECTORS AsTOUNDED.
Il was found that s23. 100000 of the
0aeed assets were fictitious. and that
sum was ordered stricken from the
Doors. This examination developed a
.-gree OF recklesSness in the conduct
OF me road tina, astounded even the di-
N,'ors. The management deemed It
1hpedient 10 stop the inquiry. and to
end formed a pool for the purchase
lle interests Of the Safe, the city
aAt Johns Hopkins University.
me preferred stock was sold 10 the
plli at l2o. and the common stock Of
Ae city Of Baltimore was taken at 100
on The dollar The common stock
Johns Hopkins was exchanged for
fred. The State and the city
'-- disposed Cf their interests. eX-
,ne S5500O0 Of the State in the
ng-on branch. the directors rep
A-ing these inventments. went out
ouGee.
resident Spencer. Mr.. Kaiser. a for
Wee president; Mr.. Linahan. Judge
''''nS aud several others who had
actively instrumental in cOmpell-
,'e Investigation, went out with
lr German. Mr.. Mayer was then
president aud J. x. Cowen was
e' chief counsel and virtually man
ana director OF the corporation.
N'NNAA SATISFIED WITH HIS
WORK.
senator German. who. IN his convsr-
- WITH the Journal correspondent
sA,' save much Of the information
contained, said that he and his
''',orS were entirely satisfied with
"orh. IN having saved the invest
or the State and city. He added
.-.v had incurr-i the undying hos
OF 'Re corporation and its imme-
friends, hut that they were willing
X. IN view Of the results they
Tho Indications are that The raiIroo5
r So INTO some scheme of eOnsolida-
W. ,efhaDs with the Southern. as the
r. ork end OF the Reorganization
en-. gee Is furnishing the money nee