St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1896-03-01
FORGED TOTHE WAL4
OFFICERS of THE BALTIMORE 81
OHIO RAILWAY ACCEPT THE
INEVITABLE
AND CONFESS INSOLVENCY.
j. X. COWEN AND O. G. MURRAY
ARE NAMED AS RECEIVERS BY
THE COURT.
RESULT WAS NOT uNExpEcTED.
As There Were Large Obligations to
Be Met, and to borrow Money
Was Impossible.

BALTIMORE, Md. Feb. 29-The
Baltimore & Ohio Railway company,
one OF the oldest and most extensive
transportation systems in the United
States, and until recently one of the
most profitable, has confessed its in
solvency and gone into the hands of re-
ceivers. John K. Cowen, its president,
and Oscar o. Murray its third vice
president, will hereafter operate it for
the benefit of the creditors and the
bondholders under the direction of the
United States court This action was
taken tonight, after prolonged strug-
gle 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 been losing money, and while the
collapse, coming at this time, was a
surprise to many, but few believed
that it could be aVerted much longer.
Since the last regular meeting of the
directors two weeks ago. Maj. Alex
ander Shaw, chairman of the finance
committee, and President Cowen have
spent a great deal of time in New
York endeavoring to borrow enough
money to provide for large floating
debt and payments of interest amount
ing to 100000 falling due on Monday
next. 1t was thought at one time
that they would be successful. but
President Cowen gave up the fight
and returned to the city yesterday.
Immediately upon his arrived he called
meeting of the directors for this
afternoon. This was fully attended,
and took place about 4 o'clock. After
session lasting an hour and a half,
the directors and legal officials of the
road repaired to the United States
court room in the Federal building,
and General Counsel Hugh Bond filed
an application on behalf of the direct
ors asking for the appointment Of re-
ceivers upon the showing made in the
petition that the
COMPANY WAS .INSOLVENT.
United States Circuit Judge Goff, of
West Virginia, who had been called
here for that purpose, in conjunction
with United States District Judge Nor
ris, heard the application and there be-
ing no objection, granted it. All re-
porters were excluded from the court
room and the hearing was strictly pri-
Vate. After the adjournment of the
court a statement was issued by the Of
ficials of the road.
John K. Cowen, the principal re-
ceiver, has been connected with the
Baltimore & Ohio company for more
than twenty years, as its counsel Six
weeks ago he was elected president to
succeed Charles f. Mayer, and it was
hoped that the change might save the
road. AT the same time several prom
inent New York financiers were taken
into the directory and thorough re-
organization was contemplated.
Mr. Murray, the other receiver, who
had been third vice president of the
Big -Four system, was invited to ac-
cept a similar position in the Baltimore
& Ohio service. He consented and has
since been acting in that capacity. Mr..
Cowen is also member or congress
from the Fourth Maryland district and
is the leader of the Democratic oppo-
sition to United States Senator Cor
man. He is fifty-one years old and
native of Ohio. The Baltimore & Ohio
system included 2065 miles of railway,
extending into all parts of the country,
east of the Mississippi river. 1t was
one OF
built in the United States, and for
MANY wears was considered the most
reliable and profitable. Under the
management of the late John w. Car
rett, of this city, it held an enviable
place among the interest and dividend
paying lines in the country, and ITS
securities were looked upon as gilt
edge. It's stocks and bonds are large
ly held for Investment purposes in
this city where the receivership is,
looked upon as almost a public calam-
ity. The Johns Hopkins university is
one of the largest holders of its pre-
ferred stock, and the loss of revenue
from that source will be keenly felt
hv the institution The stock of the