Evening star., 1896-06-23
UNIVERSITY EMBARRASSED
Johns Hopkins and Its Holdings of B. and
0. Securities
An Effort to BE Made to Force Pay.
ment - Better Prospects
for the Road.

Within the next few days, probably less
than ten, the receivers Of the Baltimore and
Ohio Railroad Company will, unless some
thing now unforeseen occurs to prevent,
have to meet one of the most difficult prob
lens that they have encountered since the
road was put into their hands for operation.
Wednesday Of next week large amount
Of interest will mature, and what the re-
ceivers are going to do about it is awaited
with much anxiety in banking circles, ac-
cording to a statement made to a Star re-
Porter by one Of the most prominent bank
ers In Baltimore, who is also in close touch
with the members Of the Baltimore and
Ohio reorganization committee.
Among the coupons which will become
due July l will be the Baltimore and Ohio
first preferred. the principal of which
amounts to S,OO0OOO, and Of which the
Johns Hopkins University holds 81 900, 600.
1t is assumed by those usually well inform
ed on the subject that the receivers of the
company are not In possession of the
amount of money necessary to redeem
these coupons, even If only those for the
current six months are presented for pay
ment. This state Of the case is proven Dy
the fact that the receivers are only now
paying the interest on the Central Ohio
ponds, the coupons of which defaulted on
March l. and those Of the Baltimore Belt
Line, which defaulted May /.
1t seems to be the policy, as heretofore
published, and which has never been denied
by those in authority, for the receivers to
pay interest on the bonds of those roads
which are necessary and integral part of
the Baltimore and Ohio system and let
those of the unimportant branch roads,
which are not dividend producers, go by
the board. The Johns Hopkins holdings,
which attain special promil ence at this
time, occupy disputed position and the
views of the trustees Of the university and
the receivers are diametrically opposite
relative thereto.
The trustees claim that the mortgage is
a prior lien to its extent the gross rev.
enues OF the company, and these words are
stated in the bond: but the receivers assert
that they have no preference over those of
any other issue.
1t is understood that the Johns Hopkins
University has received no interest on this
investment for number of years, causing
its operations to be considerably crippled
and twice resulting in having wealthy
friends come to its support the first time
some years ago, with a gift of 500 900 to
tide 1t over its then supposed-to-be tenn
porary troubles, and the second, which is
now in progress, when efforts are being
| made, with fine prospect Of success, to get
a donation from those specially interested
in the work of the institution to the extent
of $23O,OoO. to be given in yearly INSTALL
ments of $4,000 for five years
1t is claimed by the trustees of the uni
versity that If the latter received the sum
to which 1T is entitled from the B. and O..
and which amounts to $50 600 per annum
| the finances of the institution would be in a
healthy condition, and there would he no
necessity for Its officers to have to plead
poverty before the world, and it is under
stood that the plan to be observed is that
when the coupons are due, Wednesday of
next week or a day or so later. to present
them at the Office of the treasurer of the
B. and o. Company in Baltimore and de-
mand that they be paid.
If payment is refused, and 1t is anticipated
that the receivers will direct the treas
fhn frlyCf f6ac ru,i1 sf t. Il
take the case into court and see If their re-
demption cannot be compelled by law. 1t
almost goes without saying that II the de-
cision in the court below is against the re-
ceivers, the latter will carry the case to the
court of appeals, and the matter is not like
ly to reach decision in some months, but
such an event is not likely to cause change
in the plans of the trustees of the Johns
Hopkins University.
1t is understood that the course of the
university trustees is warmly supported
and indorsed by the other holders nearly
all OF whom reside in Baltimore, of the
mortgage in question, and that they will
join with them in the expense of conduct
Ing the legal struggle, if such course be-
comes necessary.
1t Is thought by some persons who are
posted on B. and o. affairs that as the
easiest way out of the difficulty the re-
ceivers will ask the district court at Bal
timore under whose general supervision
the road is now being operated, for au-
thority to make an additional issue Of GER
tificates. and pay off the troublesome cou-
pons. That was the course pursued when
the Central Ohio bondnolders recently be-
came very importunate, and as there is no
doubt that an additional issue of certifi-
Gates could be easily negotiated this NAV
be the line of action that will be followed
by the receivers.
Better Prospects.
| In railroad and financial circles the i'm
proved condition of the Baltimore and Ohio
| railroad, which has been reached in the
| short time that has elapsed since the COM
pany went into the hands of receivers, is
| the subject Of favorable comment, and the
| feeling among some Of the stockholders is
said to be rapidly changing and assuming
tone considerably less bitter than it was
a few weeks ago. Not the least influential
| factor in causing this change of sentiment
| is the remarkable increase in the business
| OF the company over the corresponding
period in several years Immediately preced-
| ing the present. The receipts during Nav
We're, it was said, nearly 5000 per day
more than in the same month of 1895 and
! over 81 per cent Of the trains made exact
schedule time.
The causes that led to this improvement
were the great improvements made in the
rolling stock and the Introduction Of new
methods in the heavy-carrying depart
ments. The Inauguration of a fast freight
| to the west was met with increased pa
ucEage from shippers and Influenced the
return of many who had forsakea the
| read when Its facilities became too Grip
pied to permit proper service being given