Elmore bulletin. [volume] (Rocky Bar, Idaho) 1889-1906, 1896-05-27

of his triumph, the newspapers were
full of the deal between the Pennsylva-
MIA and the p. W. and B.
Inexpressibly mortified, chagrined be-
yond measure, Robert Garrett deter
mined in June, 1885, to build line of
his own to Philadelphia. First it was
necessary to get legislative permission
to enter Philadelphia. That seemed diff
ficult. The Pennsylvania had the pull
Of all its locomotives with the legisla-
ture of Pennsylvania and with the Phil
adelphia city councils. The Pennsylva
MIA fought Garrett with all its strength.
But Robert Garrett, ON his mettle,
got permission for his road TO enter
Philadelphia in 40 days. 1t cost him
$500, 900. He paid his secret agents
we'll; he advertised literally; he ex-
pended large sums in fees to counsel
There We're those who insisted that
it should be spelled council.
The Pennsylvania road, finding that
Robert Garrett could get into Philadel-
phia, determined to patch up truce
with him. They agreed to pay him all
the liabilities he had incurred looking
to the construction of the road to Phil
adelphia. They made other agreements
that would have profited the B. and O..
and Robert Garrett decided not to build
the road. He estimated that the project
had already cost 20, 000,00 The Penn
sylvania was ready to pay that.
1t had really cost $s,000,000. The
Pennsy withdrew from the agree
ment. The game was not worth the
candle to them. Robert Garrett built his
road. 1t proved a fearful drain ON the
b. and o. The road hoated SIT, 900, 600
of securities on the strength of that road
between Philadelphia and Baltimore.
But "a large part of that money was di-
verified to other parts of the b. and O.
system and was dissipated by peculiar
financiering.
The B. and O. found itself ON the
brink of insolvency in October, 1887.
Drexel Morgan g. Co-which is to say,
j. Pierpont Morgan-advanced the mon
ey that delayed the day of reckoning.
But, before lending cent, Mr.. Morgan
demanded that Robert Garrett resign
the presidency.
Perhaps he had heard that Robert
Garrett, at that time. owned 14O pairs
of trousers. 1t is extremely improbable
that old John W. Garrett ever owned
two pairs of trousers at one time.
Whether or not he knew about the
trousers, Mr.. Morgan surely knew OF
Robert CARROTS eccentricities. In q
word, Robert CARROTS mind was I'M
balanced. He was paretic.
Samuel Spencer, who was vice presi-
dent of the Baltimore and Ohio, became
president in Mr.. CARROTS stead Mr..
Spencer is of the firm of Drexel, Nor
gan 81 Co.. and he is fine railroad man.
He began to economize rapidly. He up
set all the traditions of the Garrett
management. He smashed Baltimore q
gods. All the Garrett family, all Mary.
land, rose in protest.
Miss Mary Garrett, who, Of course,
inherited great fortune from her ia.
Their, old John W, put her hand in her
pocket. She Loyalty paid off large part
of the road S obligations to Drexel, Nor
gan & Co. Then Samuel Spencer had tc
| go. Then came Charles +. Mayer as
| president. His was an extravagant ad-
/ ADMINISTRATION. During it the once pros
| porous railroad steadily sunk deeper and
deeper in the mire of floating debt, bad
bookkeeping and the payment of un.
earned dividends
And 1t is said Stephen Little, the ex-
| pert accountant who went to Baltimore
| to examine the Baltimore and Ohio's
books, found the books doctored. There
are hints of journal entries that bear the
initials of the officer requiring them to
be made. thus to relieve the accountant
of the responsibility.
Enhancement of the market prices OF
securities is made ON the books to appear
as income, and no change was made
when the value of the securities again
declined. 1t is understood, too, that Mr..
Little found $50 engines laid up, use
less for want of repairs.
John X. Cowen, who resigned his
seat in congress to become the Balti
more and Obio's president, is now made
a receiver of the property for the United
States courts. He will continue to oper
ate the railroad much as though nothing
had happened, but the creditors of the
| company will be told when they press
their claims: You can do nothing Thii
company is in the hands of the courts. .
New York World.
Rov0I RA.nauca