New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-03-03


THE REcEIvERsHIP FOR THE
PIT-rsBuRG AND WESTERN
The financial situation OF the Baltimore anu o,i'o
Railroad Is set forth In the following AUTHORITATIVE
statement: ,
The floating deb, Of the Bamore T ana ob H,o
lions Of subsidiary lines for which the Baliim III, or
and Ohio is responsible are 100000 or s tt;,,nVUs
to them are construed The whole debt is secured "a
by collateral. II could be paid on the ronn p and
working capital provided for s2ooooco IL - n u,
unlikely that receivers certificates VIII pe VIII
the future purchase new equipment -, " r u'
adequate equipment the gross earnings could DE III
creased 100000 year. Iii,
The sF2 600 in interest which fell due MarSh , m
be paid out OF earnings in a short time. The s''o
90 IL interest due April l. the principal hI On
which are the charges on the line between rn ma
dephia and Baltimore Will be paid as soon a,er
that date as sufficient earnings have accu"ui"-
FINANCIAL STATEMENTS UNTRUE
The real trouble with the Baltimore and ONO IL
that the statements 10 the CONDITION VI t"o
property issued during the presidency OF Ona' '''
F. Mayer werc not in accordance with 'he M
The true state OF affairs concealed D! 'ne''
The investigation OF the company's books, maze a l
the instance OF the recently elected New YORK di
rectors showed that the company hed ON. stock
%o OF Western unon telegraph was found that
Mr. Mayer had disposed OF 100000 OF the siocS an
had not made known the fact what is left OF ms
stock is pledged as collateral for loan the Ness
ern Union stock was originally acquired as IS gen,
orally known in payment FOR me IS ,ba Western
Ohio telegraph lines which were sod TO the "eSe'
The money FOR interest due March could not be
secured simply because the company coud nov 40
nish the required collateral. The company w
s tHS of IT'S accounts for ordinary measures
10 avail This investigation WAS CARRIE se w
investigation by Stephen Little. the. expert , &C,
countant made for the syndicate Whlch wa !" "'''
the company but did not
HEAVY HOLDERS OF THE STOCK.
Large holders of Baltimore and Ohio stock. In ad-
don to the Garrett estate. are the johns hoph''s
University the City OF Baltimore and the state Oh
MARYLAND 1t Is not true that John X. Cowen was
not acceptable to New-York interests az president
Of the company because he had been iden'ihed win
the Garrett regime. lie has worked very nara lot
the property go.
whether foreclosure will be necessary canno, yet
be told II Il should be. there Will. OF course =" a.,
assessment on the stock An Issue OF income bonds
MAY he resorted TO- While some OF the guarantees
may have be reduced. It Will hardly he advls I DE
cut off subsidiary lines. as they are ihNa'u'0ie "
feeders.
1t is calculated that the Baltimore ana oh'o mas
paid out $1,000 900 in unearned dividends
Judge Lacombe. in the United States circuit
Court, yesterday appointed President John IL cow"
and Vice President Oscar g. Murray me RECEIVERS
Of the Baltimore and Ohio auxiliary receivers OF
The property Of the company In New-forK SAT-
The application was made az the instance OF 'he
Mercantile Trust Company and was not opposed
Within 1--WE days the receivers must execute T,Po a.
rate bond in the sum OF s2nW IN Inc count -
primary jurisdiction at baltimore
NOT 4 SURPRISE.
tn. appointment at Plttsburg of Presiden, Thomas
NJ King OF the Pittsburg and Western Railway az
receiver OF tina, road surprise. The ROAD mas
been used as a part OF the Baltimore ~he '"''
through passenger route 10 chicago but y mas ''o'
made good financial exhibits The bafimor. az ~,
Ohio owns $4,000 Of its capital stock. "h'ch Al
foris control. . go , o.,. 9Th,
western will not be affected by the reccyefsn.p
Of The Baltimore and ONO Its ea.nings exceed ~
q, The stock Of the staten Island RAPID Trans,
COMPANY but this COMPANY Is eafn, nm, ajion
the staten Island company to be .epar. ,h. a 9
the baltimore ana ONO az !, 'yTn'h ns 'e A''
NET DECLINE OF IS. POINTS.
III. co,o,non stock u the Baltimore and OHIO
which closed a, 81. Saturday. opened at 1914
Yesterday. advanced 10 20 and receded 10 49, AZ
IN. close so tina, the not loss for the day was "a
no,n,s. The five per cen; bonds OF 1855 fell from
im Saturday to %. and the five per cent bonus o'
'' President cowon OF Inc Baltimore and Ohio spent
Yesterday IN New-York. -. mai. -, ~.
ranar - 'hc B,l,imore and Ohio. and they say
their Baltimore correspondents are w,nou, n.y
important lines OF II. The companys loans are heli
Ia a., tcrests thai have been Identified with
the property for some time past ana par %, e IT,"
for account OF European Interests TIC iecsFot .
sStn thcrefore is without material effect on the
local money market. NJ,
baltimore March THE first enect OF the bait-
more and Ohio receivership VIII be to enable the
.connany TO withhold payment Of It's pressing OBJ
legations and TO inaugurae the policy when fres'-
a.r, cowen WAS about TO start-the general over
hauling OF the rolling stock. This will he done In
a thorough manner and Will extend TO every Iocoiho-
tive and car that Is not At the maximum stHnuaI
az eniciencv IL ~ generally understood that the
rundown condition OF the roads equipment mas
greatly impaired its earning capacity me cufI'h'
receipts OF the company VIII he uSeu io' '"'' ~"
pose.
ing for n receVership in the states OF New oIh'
Pennsylvania. Delaware. virginia, West tns i,.
ohio. Indiana and Illinois. ana the 'ls,ict OF ,,
King 10 ALI the employees of the Baltimore ana ono
Company continuing them In their POSITIONS uhuer
To-day there Is due interest and rental obligations
from the Baltimore and ohio Company amounting
to $3.50 30 1t was this Obligation more man ah h
other condition that forced the company mo 'ns
receivers hands. President cowen spent most OF
last week In NewYork trying TO negotiate ioa Az
with J. =. Morgan Co FOR the pressing ne"rs "a
the company Morgan co. were willing 70 eX,e e
the aid. but demanded concessions which The nai.-
more interests were not willing TO grant me Nv
York firm made II a condition or the loan INA, IL
10 have either absolute control OF the bai'ore
through a pooling Of a majority OF the stock INTO
voting trust. to be placed in the firms hands tot
term of years. or 1t was to direct the policy OF ,e
company through the Board OF Directors. TO ms
end it demanded the retirement OF certain members
OF the Board their places TO be taken by ateC.ors
by the firm and director unsatisfactory
he firm o be admitted.
This was of affairs when Mr.. cowen
returned from New-York last Friday and IL was
laid before Of the largest stockholders OF tho
Baltimore and Ohio stock These stock holders. II ~
said. took the position that as between controi
OF the property by Morgan Co, and n receiver
ship which might ultimately wind up in "A retention
OF the roads control In local hands. the BALTIMORE
interests preferred recelvership
Further communication with Morgan Co. was
suggested. and on saturday message was sem
to The firm asking II II could modify its demands
In giving assistance to the road. The firm refused
to recede from Its former position, ana WIN no
other recourse left In which to raise FUNDS Tor
current and pressing needs the company was forced
TO the wall.
TO confer TO the finances OF the reorganization
Additional members OF the Reorganization COM
mttec will be named in "A day two. This com
mttee. far made up IL composed OF Louis
Eugene Delano Edward X. Bacon and
William A. Read, who are the NewYork members
Of the Board OF Directors II II proposed to add
this committee representatives OF large interests
In the securities OF the Baltimore and Ohio. The