The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-03-01
THE B. d o.
Interest In the Apparent Cu1mina-
ton of the Crisis.


NEW YORK, Feb. 29.-Interest in
the apparent elimination Of the crisis
in the affairs of the Baltimore & Ohio
road dominated other considerations
in today's, as in yesterdays stock
market. The stock closed at a net de-
cline of 1874 per cent for the week,
the fives of 1925 at a loss OF 1412 and
the conso1 fives of 1888 were offered
down to 81, seller 20, as against LOG,
the last previous sale. Rumor5 I'M
fayorably affecting the financial credit
of the company have become an old
story in Wall street during the past
year and have been set down by Of
ficials of the company TO bear opera
tors both here and in London. The
non-payment of the obligations of the
company has been repeatedly pre-
dicted, but upon each occasion the
money has been forthcoming, and
within the past few days President
Cowen has been heard from to the
effect that March interest had been
provided for and there was fair pros
pect of a satisfactory readjustment Of
the cornpany's affairs A syndicate
was recently formed to prepare a plan
of reorganization, involving the issue
Of a collateral trust loan for three
years, to take up the floating debt of
the company. A proposition had also
been considered to establish line to
be called the Baltimore & Northwest
ern railroad, embracing the Pittsburg
& Western and the branch of the Bal
timore & Ohio from Akron to Chi
cago Junction. All of these projects
were to be conditional upon salts
factory report by expert Stephen Lit
tie, as to the financial condition of the
17ronO11nced NNea IxneS
of the securities has predisposed the
traders to take the worst possible view
of the outlook and officials of the COM
pany, both in Baltimore and in this
city, were today mute when interro-
gated as to the condition of affairs
Up to the close of business it could
not be learned positively whether the
March interest had been provided for.
BALTIMORE. Feb. 29.-The Ba1ti-
more & Ohio Railroad company, one
of the oldest and most extensive trans
portatfon systems in the United
States and until recently one of the
most profitable, has confessed insol-
vercy and gone into the hands of re-
ceivers. John Cowen It's president and
Oscar G. Murray, its third -presi-
benefit of the creditors and bondhold-
ers under the direction of the United
States court. This action was taken
tonight after a prolonged struggle
against the inevitable, and was the
immediate result of the failure of the
directors to negotiate loans to pro-
vide for interest and other payments
due and about to become due. For
several years, however, the road has
I6e, TLA ~
lapse coming at this time was a sur
prise to many, but few believed that
it could be averted much longer. Since
the last regular meeting of the direc-
tors two weeks ago, Major Alexander
Shaw, chairman of the finance COM
mittee and President CoWen have
spent great deal of time in New
York, endeaVoring to borrow enough
money to provide for a large floating
debt and payments of interest amount
ing to 100000, falling due on Mon
day next
Mr.. Murray, the other receiver. who
had been third yice-president- of the
Big Four system was invited to ac-
cept similar position in the Balti-
more & Ohio service. He consented
and has since been acting in that ca
pacity. Mr.. Cowen is also a member
of congress from the Fourth Maryland
district.
The Baltimore & Ohio system in
cludes 2.065 miles of railway, extending
into all parts Of the country east of
the Mississippi river. It was one of
the first railways built in the United
States and for many years was consid-
cred the most reliable and profitable.
Under the management of the late
John W. Garrett, of this city, it at
tanned an enviable position among the
Understanding and dividend paying
lines in the country, and It's securities
were looked upon as gilt edged. Its
stocks and bonds are largely held for
investment purposes in this city, where
the receivership is looked upon as al
most public calamity.
Johns Hopkins university is one of
the largest holders of its preferred
stock. and the loss of revenue from
that source will be keenlY felt by the
institution. The stock of the com
pany is $4,000, 900. divided as follows
First preferred, $4,000, 000; second pre-
ferred. 81. GOO 600; common and scrip,
| s25,0Oo,Oo0 Its bonded indebtedness,
according to Poor's manual for 1895,
is $7h.000.000 and its floating debt is