Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-05-19
Receivers Certificates for SIS, 100000
to Be Issued.
TO Be DEVOTED TO IMPROVEMENTS
Financiers Regarding the Property
in a Favorable Light.
EXPECTED BANKERS BATTLE


| ceivers Cowen and Murray of the Baltimore
and Ohio Railroad Company will, it is au-
| thoritatively stated. make application to
Judges Goff and Morris of the United States
| circuit court at Baltimore for permission to
| issue 100000 of certificates to be used
| for the purposes of the company.
1t was suppC sed until within the last day
! or two that an issue of s.. 10000 would be
sGfhcient to meet all present exigencies,
the greatest apparent need being for more
| rolling stock and incidentals relating there
| to; but 1t has been found that there Is an
| urgent floating Indebtedness of million or
| more which the receivers wish to wipe out,
that makes the additional issue necessary
| Besides this, the "feelers" thrown out by
those In authority to test the views of cap
| italists in the matter have shown that de-
| spite all the difficulties with which the B.
and y. Is surrounded, with the additional
| fact that the bonded debt for which the
rosn' primarily or as indorser, is liable
amounts to more than $lS1 900 600 the re-
ceivers will have no difficulty in floating the
proposed new loan.
1t is a source of much qualification to the
bankers who are holders of B. and o. Sc
cur1ties that capitalists who are well known
10 be extremely sensitive on the subject of
1 investments have over-subscribed for one
half OF the proposed amount. which has
been allotted to the Mercantile Trust and
Deposit Company of Baltimore and that
| they are already quoted at l per cent pre-
| MUM. while word received from New York
is OF the same favorable nature.
| stephen Littie's Expected Report.
| This encouraging state Of affairs is be-
Heved to be largely owing to the fact that
there Is reason to believe that the forth
coming report of Expert Little will make a
| more favorable showing than was expected
SO FAR as the condition of the property is
| . ic
| Mr.. Little, in his report will severely CEN
| sure the late management for the waste of
| large amounts of money in useless and un-
| profitable enterprises
| In conversation a day or two n % With .
| star reporter, member of the Baltimore
| reorganization committee said:
nave never doubted that the result of
| MI. Llttle's examinations will be favorabl
| 10 the Baltimore and Ohio as a good in
| Vestment property. / have always claim
ed that the Baltimore and Ohio COMPANY
m IN i' sell Is solvent, and that the money
| iost mas been on Improbable schemes and
| Undertakings, through the purchasing
guaranteeing and indorsing of other roads
ana enterprises and by taking business
! from the baltimore and Ohio road lroper
TO bolster up and carry these unprofitable
| ventures 'ie
The question now" he continued, "is
now to correct past errors and reba hill
| tate the property, relieve it from its en-
| paying basis fi
The first step toward this will be by the
| use OF receivers certificates to be issued
| oy the Baltimore and Ohio Eouionant
| SSIIinpany, indorsed by the Baltimore and
ZINC h,l hallroad Company. and guaranteed
| secured by the pledge of 1O1 engines now
| IN existence. and, Of course by the new
equipment. which is to be purchased with
| the proceeds Of the certificates"
HOW the Road Was Handicapped,
| Another man who is in close touch with
| many OF the largest holders Of Baltimore
ana ONO securities in Baltimore said: 1T
~ worthy OF note that the predictions made
by Mr. Murray's friends when he was an
pointed receiver that he would bring the
| road up to a tirst-class condition are randi
| iy becoming realized. But while this is the
case 1t should not be forgotten that had
Mr.. Murrays predecessors in the manage
| ment or the operations of the system been
provided with the same sort of facilities
| they might have been able to have made a
| much better showing.
| With one-half of the equipment living
IDLE on side tracks or helpless in the shoDs
Whlch were not Permitted to be operated
this at the dtctation of some authority who
| mas not yet been made known to the pub
lic-it was impossible to do the business
| that the system was capable of transacting
| When Mr.. Murray took charge as first
| vice president the parties in control had
become aware that matters had arrived at
! a desperate stage and that il was necessary
TO resort to hel ole measures. Since his ac-
| cession to power-first as vice president
and since as a receiver, he has had all
| the shops of the company running on full
Tune, ana the greater portion of the long
| time disabled equipment has been or soon
Will be restored to active service
| RumOred Contest of Financiers.
| 1t Is said that the financial world is
watching with a good deal Of interest a
| coming contest between Speyer & Co. and
| j. P. Morgan & Co. in reference to two
loans. in which those two great banking
nc uses are interested, and which are known
| rs the Plttsburg and Connellsville first and
seconds, with the proba blity that the
| Parkersburg Is will also become involved
| and the consolidated mortgage of 1855 The
first named, which was for $1,000 coo and
will be due in 1925, is practically a third
| n ort5age on the Pttsburg and Connells-
| Vile line. and was floated by Speyer & Co.,
| and intended to be q lien the old main
| line. The consolidated mortgage Of 1888
was placed by Drexel, Morgan & Co., and
| was drawn with the distinct purpose of be-
| ing a lien on the main line ahead of the
| 1870 issue. In reference to some of the
bond issues bond expert said:
THE Baltimore and Ohio terminal and
collateral trust mortgage was drawn with a
view of making it a prior lien Accordingly,
| the terminals were put in the name of
| third party, called the Real Estate and I'm
| provement Company Of Baltimore. This
| party Joined in the mortgage and pledged
| as additional security rental which the
| Baltimore ana ONO promised to pay
| monthly for the use Of terminal yards, and
| the Baltimore and Ohio agreed to charge
| this rental to operating account.
| If the receivers are willing to continue
| so charging the interest on these bonds, the
| barking houses interested in other bonds
| will probably make a strong contest on the
| ground that the rental is paid for property
which ought to be subject to other liens.
| with New York and London on one side
| and Baltimore on the other, with conflicting
legal claims and with the banking houses
| of Morgan, Speyer, Brown and Vermilye,
| all trying to protect themselves, there will
probably be a very animated contest"
ASCRIBED TO REVENGE.
| TRAGEDY I'm Ohio T0vrn CI,arned