Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-04-21
AID FROM NEW YORK
Garrett Interest in B. & O. Deserts
the Baltimore Committee.
MONEY FROM OUTSIDE BANKERS
Reorganization Committee Will
Probably Not Be Supported.
MATTERS FOR INVESTIGATION

Miss Mary Garrett, the largest individual
stockholder of the Baltimore and Ohio
Railroad Company, and whose holdings,
with those she represents, aggregate ST.
100000, has, it is stated on excellent au-
thority, withdrawn her support from the
Baltimore reorganization committee and
her representative, ex-Judge William A.
Fisher, has resigned from the committee
There has been formal announcement as
to whether Miss Garrett will act with the
New York committee, but the belief is gen.
eral in railroad circles that she will. 1t is
also understood that the Johns Hopkins
trustees and several other large holders of
Baltimore and Ohio securities, residing in
Baltimore, will adopt the course said to
have been determined upon by Miss Car
rett, and cast their lot with the New York
committee. believing that if their property
is to be put on a paying basis within a
reasonable time it must be secured through
capital obtained either in New York or
from European connections with New
forks great moneyed institutions.
The withdrawal Of Miss Garrett and the
others named from the support of the
Baltimore committee leaves that commit
tee in a condition which is not far from
being at the mercy of the New Workers.
Money From New York.
II - hllO"h " Dt JIIe VI lilc
receivers, who are said to be really the
representatives of the New York COM
mittee and to be carrying out their in
structions, to place the Baltimore and
Ohio system throughout in the very best
physical condition. and that Receivers
Cowen and Murray have been assured
that the money to do this will be forth
coming whenever it is needed.
1t is not surprising that the receivers
should look TO the New York committee
for financial help, as it is recalled that in
every instance for at least ten years when
the Baltimore and Ohio was in want of a
great sum of money, efforts to secure it
from Baltimore bankers failed, and New
York bankers had to be called upon.
In 1887, when Mr.. Samuel Spencer, now
president of the Southern Railway Com
pany, was president of the Baltimore and
Ohio, he was compelled to raise SlOoGO,OO0
10 avert bankruptcy OF the company, it
with ]. Pierpont Morgan, then of
Drexel, Morgan & Co, that the deal was
made, and now that the road is in the
hands of receivers, the executives of the
system are, it IS said convinced that the
same house must be relied upon for money
needed
An Old Surplus.
1t Is said that one of the main reasons
for the action of Miss Mary Garrett in
casting her lot, if she has done so, with the
New York committee is that she was averse
to any publicity being given to what might
be termed the private affairs of the Balti-
more and Ohio as she believed that they
were matters for the consideration of the
management alone, and then only in their
private offices.
In this connection the course of Senator
German and Mr.. Thomas NJ. Lanahan,
who in 1883 represented the holdings of
the state of Maryland in the Baltimore and
Ohio, is recalled. Previous to that time the
reports of the president, John W. Garrett,
end subsequently Robert Garrett, his son,
were accepted without question. At one of
n ne hnlr r1l of
report of the financial condition of the
road made by Mr.. Bulkley, an expert, was
submitted.
1t became known that Mr.. Bulkley's re-
port shattered one of the idols of the
Garrett family-an alleged surplus of S4S-
G0O,OOO-and by some strange lapse of Ian
guage, of which Mr.. German has never
since been guilty, he allowed the remark
to fall from his lips that he would ask
some questions concerning the report when
the paper came up before the meeting of
directors
But Mr.. German failed for as soon as the
report was reached, one Of the Garrett
directors moved and the suggestion
adopted, that the consideration of the
port be indefinitely postponed.
Enough concerning .he contents Of Mr..
Bulkley's report, however, became known
to let the public learn hat the SiS,D0.OOO
surplus myth. and that there was
not dollar in the treasury of the amount,
while what the so-called surplus really Gid
consist of was lot of engines, bridges,
terminal facilities round houses etc, term
ed on every other road in the WOrl1, so
far known, bettermea1S.
Points of Investigation.
As stated In The Star of yesterday, the
Baltimore and Ohio committee wants to
make a thorough investigation Of the trans
actions of the company from 1883 to the
latter part of 1895. Among these, 1t is un-
derstood, are the investment of several
millions in the Staten Island Rapid Tran
sit Company, with great warehouses there,
and the building of a very expensive bridge
across the Kill Won kull, to reach Staten
Island, and which has never been used ex-
C6pt for a freight IOute; the Baltimore and
Ohio having made arrangements, shortly
after the expenditure of vast sums for the
above purposes with the Reading and Jer-
sey Central 20 run its New York trains be-
tween Philadelphia and New York over
their lines until the twenty-ninth century.
Other deals to be looked into unless those
opposed to making the investigation can
defeat the Baltimore and Ohio committee
are said to be the building of the Akron
division of the Baltimore and Ohio; also
the Pittsburg and Western, the terminal
facilities at Cleveland. and many other
matters of construction, which, it is claim
ed. were performed by companies specially
organized for the purpose, and whose mem
bers were in the main, II is said officers of
the Baltimore and Ohio.
The Tunnel.
Amid the blast of charges of unwise
management it is said there is not breath
of suspicion that the Maryland Construc-
ton Company, which built the Belt line
tunnel under the city of Baltimore over
charged the Baltimore and Ohio to the ex-
tent of dollar in any contracts perforn,-
ed by 1t, while, the contrary RYAN
ard Mcdonald, the subcontractors some
months ago entered suit against the con-
struction company for more than 500 900
which they claimed to have paid for extra
work done on the tunnel by order of the
construction company.
The Baltimore and Ohio will also II is
said, soon have bill of the General Elec-
trio Company of S1,OO0.OOO to meet for the
equipment of the tunnel with electricity
When this contract was made Receiver
then General Counsel, Cowen told The
Star reporter that the agreement was that
the electric company was to equip the
tunnel for the moving of trains by electric