Evening star., 1896-03-02

Y,
they unanimously passed resolution au-
thorZing the comp2ny'S s officers 10 confess
a judgment in favor OF the Mercantile
Trust Company for the amount Of the debt
due to that company hid by ii on behalf of
the syndicate. and also consentins 10 the
appointment Of receivers Cor the property.
This action was taken ofter full deliber-
alton and after the presentation of the
whole case to the directors. The board at
the same time passed resolution request
ing the New York members of the board,
namely, Messrs. Louis Fitzgerald Eugene
Delano. Edward r. Bacon, Rowland Davis
and William A. Read. who have been PIE
pairing plan for the rehabilitation of the
company without the foreclosure of any of
the company s mortgages, to organize
themselves as a committee. with power to
add to their number or to associate with
them a committee in London for the pro-
lection of the interests of all the security
and shareholders. with a view to the inn
mediate reorganization of the company and
its affairs.
'As stated. these gentlemen have been en-
gagged for some time upon plan for the
rehabilitation of the company and its fin
ances. They will continue in this effort,
and they expect to have appointed in Lon
don another committee of security and
shareholders TO cooperate with them in the
presentation of plan which will have for
its object the eXtinSuishment of the entire
floating debt of the company and the fur
nishing of new capital. and the placing of
the company's finances upon a firm and
stable basis.
The board of directors and the officers of
the company greatly regret the necessity of
asking the intervention of the court, but
the demands upon the company We're SO
pressing it was impossible to deal with the
subject of readjuStment without getting
the delay which arises from a receivership
and the administration of the property An-
der the orders of a judicial tribunal
Mr.. Cowen states that in regard to the
relief department of the company. every
obligation of the company to its employees
will be, under the order of the court, full
filled to the letter.
This department. under the courts Or
der is continued precisely as 1t was under
the company. All deposits made in the
company's saving fund are absolutely pro-
tected, and all obligations to employees un-
der the relief feature are to he carried out
and all payments made precisely as If no
receivership had taken place"
The Relief Department.. 't->
Mr.. S. R. Barr, superintendent OF the re-
lief department, Baltimore and Ohio rail-
road. has issued the following:
The receivers Of the Baltimore and Ohio
Railroad Company authorize me to give the
following notice:
''By the order of the United States circuit
court appointing receivers for the Baltimore
and Ohio Railroad Company, all obligations
OF the relist department are thoroughly pro-
tected and will be fulfilled to the letter.
Under the courts order the relief depart
ment will be continued precisely in the same
manner as under the company's manage
rent, and members of the relief department
will receive benefits, and so forth, with the
same regularity and certainty as heretofore
THE funds belonging to the relief DEPART
ment, both relief savings and pension fea-
lures. under the order of the United States
circuit court, are perfectly safe and the
appointment of the receivers and their man
agement of the relief department under the
supervision and with the approval of the
n oil taIx two
bers of al features of the relief department
against loss. Payment of the benefits. pen
sions and deposits will continue as before
the appointment Of receivers, the relief de-
partment not being really affected by the
appointment in any way. The savings and
building features will continue to loan
money to employees as heretofore
May Last Five Years.
The Baltimore Sun says: Last night Mr.
Cowen went to New York to confer as to
the finances of the re organization i" ~.
Tae first effect of the receivership Will be
to enable the company to withhold pay
ment Of it's pressing obligations now due
or soon to become due. ai. .-
1t Is said that the receivership will prob
ably cover a period of about five years
Prompt action has been taken to file sup
ceivership in the District of Columbia, the
states of New York, Pennsylvania, Della
| ware. Virginia, West Virginia, Ohio, In
diana and Illinois.
The receivers will control the following
Parts OF the Baltimore and Ohio system,
which also include branches operated:
Lines from Baltimore to Pitlsburg,
Wheeling, Parkersburs, Harrisonburg, and
from Pi-tsburg to Wheeling. Lires west of
the Ohio river, including that from Bellaire
to Chicago, the Columbus and Cincinnati ii
Midland and the Akron ard Chicago juno
ton. Fairmont, Morgantown and Pitts
burg railroad.
The roads identified with the system and
| over which the control Of the receivers does
not extend are: Baltimore and Ohio South
western railway, extending from Parkers-
burg to ST. Louis and Louisville Pitts
burg and Western railroad; Pittsburs,
Cleveland and Toledo railway; Valley rail.
way Of Ohio; Staten Island Rapid Transit
Railroad Company, operating sixteen
mile railroad between Tottenvilie, n. Y.
and Clifton, N. Y; the West Virginia and
Pittsburg railroad. one hundred and fifty-
nine miles, leased by the Baltimore and
Ohio.
Failure to Raise Money.
1t was supposed that the company had
reached the end Of its vics situdes when ar
rangements were presumably made with a
nrt<