Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1896-03-03
ANOTHER RECEIVERSHIP.
The p. W. Railroad Confesses Judgment
to Big Claims, and Thomas NJ King Is
Made Receiver.

The z. W. Railroad Confesses Judgment
to Big Claims, and Thomas NJ. King Is
Made Receiver.
Pittsburg, Pa, March 2.-Thomas
NJ. King. second vice president Of the
baltimore & Ohio Railroad Company,
was appointed receiver for the Pitts
burg & Western Railroad Company at
10 a. m. by Judge Joseph Burlington,
in the United States Circuit Court.
Mr.. King will give bond in the sum OF
$50 600 for the faithful performance OF
his duties.
This action was taken by the court
after two bills in equity had been filed
bv the attorneys OF the Mercantile
Trust Company, OF New York CITY,
and answers by the Pittsburg ana
Western officials, admitting the allega-
tions contained in the bills OF the COM
pany.
In the bill on which the order was
made. appointing a receiver, the Mer-
camille Trust Company's claims, that IN
July. 1887. the defendant issued mort
gage for $4,000, 900, interest at per
cent. payable semi-monthly. to secure
bonds which have been hypothecated.
On May 21. 1891, another mortgage was
made for $3.500,0 600, interest at , per
cent. TO secure $2,14000O worth OF
bonds. The bill also alleges an out
standing Indebtedness OF bills payable
to the amount of 100000. The other
suit was on a promissOry note made
February 10, 1896, for 100000, IN
which judgment was also confessed
This would swell the total Indebtedness
TO SIG. 600 600, from which is 10 be de-
Quoted the difference between $780,
600 mortgage and $2,140,0O0 bonds,
which it secures. or $3.50 900, leaving
a total Indebtedness as alleged IN the
bin of $l6,2+0, 600.
Judge NJ. w. AchesOn made an order
confirming the appointment for the
western district of Pennsylvania OF
Receivers John X Cowan and Oscar
G.. Murray as receivers of the Balti-
more & Ohio.
a number of other papers were also
filed in the United States Circuit Court
in the equity suits involving the Baltl-
more & Ohio Company. A copy of the
order appointing receivers was also re-
ceiyed and it required them each to give
100000 bonds and orders the contin-
uation of the Relief Department.
A copy of a promiSsOry note given
the Mercantile Trust Company for ST.
600 600, and payable on demand, was
also filed In answer to this, Thomas
NJ. King. as second vice president, con-
fesses judgment for 1929, 47O.03.
III 40
dends on preferred stock, payments OF
accounts. car trusts. sinking funds,
etc. for the fiscal year, ending June
80. 1896. shows grand total Of S.
133.OO7.51.
The New York Sunday Journal
commenting on the affairs Of the Bal
timore & Ohio, says:
The New York men who expected to
provide for the financial relief of the
company. found upon investigation
that it's condition was even worse than
they had anticipated. Expert Stephen
Little was then employed to examine
books and accounts. His report con-
firmed the first investigation, and the
syndicate which was in contemplation
TO finance the company refused to I'M
dertake it, With unearned interest
charges and a constantly increasing
floating debt. the only course open was
to go into liquidation and reOrganize
upon paving basis. if possible.
The greatest drain upon the com
pany has been the many small branch
lines, which cannot possibly be placed
upon a paying basis. In order TO make
a fair showing for some of these pur-
chased lines, traffic has been diverted
to them from the main line, to the det-
riment of the latter. A reorganization
will cut off some Of these membranes
and the Baltimore & Ohio railroad
which should be in itself paying prop
erty can be again placed in good shape
The Baltimore & Ohio railroad prop
or has a funded debt outstanding OF
SS4,021,0 600. Its capital stock is $780,
900 600. divided into S5000,000 prefer
red and $4,000 900 common stock. The
main line extends from Baltimore. Nd.
to Wheeling, w Va, and includes a
number of branches divided into the
Philadelphia, Pittsburg, New York anC
Trans-OhiO divisions
A number of railroads are included
in this entire system by control of the
stock purchased at various times by
the company Among these are the
Pittsburg & Western, which was ac-
Quired in 1891; West Virginia & Pitts
burg. which was leased to the Balti-
more & Ohio in $780, Valley railway
acquired about the same time: Balti-
more & Ohio Southwestern system. Sc
cured in 1893 through a deal with the
old Baltimore & Ohio Southwestern
and the Ohio & Mississippi railway
This latter system gave the road an
entrance into st. Louis. In 1891 the
company began to run its trains into
the Grand Central station at Chicago
over the tracks of the Chicago & North.
ern Pacific The road gains entrance
to New York over the Central Railroad
of New Jersey tracks.
Included in the Baltimore & Ohio
system is the Staten Island RapiC
Transit Railroad. which is controlled
by the Baltimore & Ohio through ar
ownership of a majority of the stock.
The main road quarters interest upor
the great bulk of the bonds of the sub.
sidiary lines. which in many instances