Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1896-03-05
RECEIVERS FOR THE B. & 0.
Two Appointed on Monday
by Judge Wales.
THE ACTION OF LOCAL INTEREST
John X. Cowen and Oscar C.
Murray Selected.
The Application Made by Andrew E. SAM
born In Behalf Of the Mercantile Trust
90. of New York, Which Holds a Note
Amounting to a Million Dollars.


the Mercantile Trust Go. Of No 1870
Broadway, New York City, holder of
81, 900, 600 promissory note against the
cation before Judge l.. Il. Wales, in
the United States circuit court for
Delaware, in equity, on Monday, for
the appointment of receivers for the
Baltimore Il Ohio Railroad Go.
Levi @. Bird, representing the rail
road company, petitioned the court
that John X. Cowen, president of
the company, and Oscar G. Murray,
first vice. president, who were APP
pointed receivers in Baltimore on Sat
urday, be appointed also for Delaware.
At the same time he stated that the
same application was being made that
morning in all other States through
which the company operates, owned or
leased lines.
The bill of complaint and several ex-
hibits were read by Mr.. Bird. The
substance of the complaint was to the
effect that the defendant railroad com
pany owed 81, 600, 600 to the complain
ant. and in the exhibits it was shown
that smaller amounts are due to other
creditors.
In Mr. Birds prayer the statement
was made that should the appointment
of the receivers be made the indica-
tions are that matters can be straight
ened out within a year; but failure TO
allow the affairs of the company to be
placed in the hands of receivers would
be fatal TO its future. The prayer
asked that in addition to amounting
receivers the Court instruct the re-
celvers TO carry on the business Of the
company and carry out ita obligations.
The text of the promissory note due
the Mercantile Trust Co. of New York,
which was read enumerated collateral
us follows: Bonds of the Paramount,
MorgantoWn railroad, amounting to
81. 053, 600; ST., 600 Baltimore a. New
York railroad bonds; S26, go, Central
Ohio railroad stock; Sl10, 600 Consoli
dated Coal Co. stock; Sl05, 600, United
States Express Go. stock: s223, 600,
Valley railroad of Virginia bonds
S24, 600, Cleveland Terminal & Valley
railroad first mortgage bonds: S237, 500,
Sandusky, Mansfield d Newark rail.
road stock: $40. 600, 600, Baltimore g.
Ohio Southwestern railroad stock
s6,5l5, 600, Pittsburg d Western rail.
way stock; Sl95, 600. Chesapeake &
Ohio canal repair bonds tlS7Sl.
The fixed charges for 1885, amount
ing to S., 1873, 600, were also enumerated
by Mr.. Bird, and the exhibit relative
to the relief department, the affairs Of
which will not be disturbed, were also
read.
An affidavit made by Thomas NJ.
King, vice-president Of the railroad
company, admitted the truth of all the
allegations made in the bill of COM
plant.
The order made by Judges Goff and
Morris in Baltimore, on Saturday, ap.
pointing John Is. Cowen and Oscar q.
Murray receivers, was also read by Mr.
Bird, who followed it IN with the an.
swer Of the defendant company, pray.
ing for the appointment of tho same
receivers.
Mr.. Bird filed all of the papers with
Commissioner S. Redmond Smith, after
which Judge Wales signed decree an
pointing Messrs. Cowen and Murray
receivers to carry on the business Of
the Baltimore n Ohio Railroad Co. in
Delaware
Mr.. Bird Immediately telegraphcd Ia
the receivers in Baltimore notice Of
their appointment by the court Of the
District of Delaware.
TO REoRGANIzE THE COMPANY.
A plan is on foot to reorganize tho
company but it is thought that at
least hive years may be required for the
reorganization. Levi G. Bird, counse
for the company, stated this morning
to reporter Of Every Evening thai
the company il solvent, and the actor
Is the result of amicable negotiations
There seems to be no doubt about Tia,
carability Of the new receivers Il
manage the affairs Of the company.
SHOPS IN FULL BLAST.
An order was issued on Sunday b,
Second Vice President King accordin.
70 which all employees Of the Il. a. o.
become the employees of the receivers
continuing in the same positions which
they occupied with tho COMPANY.
At present il 10 said that no change,
m the working force 81 any department
are proposed
The first move Of the receivers vii
he to carry out the policy which Presi
dent Cowen was about to start Tn,
general oyerhauling If the rollint
stock. This will be done in a thorough
manner and will extend 10 every loco
motive and car that is not at the maxi
mum standard Of efficiency.
In carrying out this plan the yariou,
shops Of the company will 10 but i,
tull operation. 1t is generally under
stood thar the run -down condition d
the road equipment has greatly i'm
paired its earning capacity
Tho work thus to be done will cal
for considerable expenditures and th,
current receipts Of the company will b.
used for this purpose,