Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-01-09
B. AND O.'S FUTURE
Financiers Playing for Its Con-
troll.
A CHANGE EXPECTED SOON
Temporary Postponement Ar
ranged by Chairman Shaw.
THE MORGAN INTE REST

In the opinion Of many who are con-
versant with Baltimore and Ohio affairs
there may be copsummated In the next
sixty or ninety days one of the largest COM
binations Of railway interests this country
has yet seen.
This expected outcome Of the situation in
which the Baltimore and Ohio finds itself
has been postponed. 1t is said because Of
the success Of Col Alexander Shaw, chair
man Of the finance committee of the Bal
timore and Ohio. within the last few days
In getting an extension of liabilities, which
previous to the close Of last year had
promised to produce a crisis in the affairs
Of the road
This postponement does not, 1t is asserted,
materially alter the case Of the Baltimore
and Ohio or remove the necessity for MAX
ing arrangements to provide for the float
ing debt. About 100000 of this floating
debt must, it is said, be liquidated within
about ninety days or the collateral which
has been deposited as security for IL will
have to be forfeited. This collateral con-
sists, 1t is'said, Of $4,000 shares of Western
Union stock, representing a par value of
S3,0ooOO0, which was the figure at which it
was taken some years ago by the Baltimore
and Ohio company as part payment for the
Baltimore ard Ohio telegraph lines from
the Western Union company.
Alternative Buyers.
Persons in position to speak advisedly
in regard to the Baltimore and Ohio COM
pany and its affairs say that there are two
interests seeking control of the Baltimore
and Ohio affairs.
One of these is the banking firm of ]. p.
Morgan & Co., who have rendered TO the
proper authorities the loan of s4,000.0o0,
provided, as heretofore stated in The Star,
-, - af1l
operations of the road. The other is
syndicate compose of large Baltimore
stock and bondholders, such as the GAR
retts and their friends, and the four New
York directors recently elected. If the last
mentioned combination fails to get the
requisite funds to redeem the 10000 shares
of Western Union stock already referred to,
or an offer by J. p. Morgan Co accepted,
an amicable arran cement may, IL is said,
be made between the various parties inter-
ested to hive their interests protected oy q
-ecevership. All of the parties interested,
1t is claimed, wish, however, to avoid this
course.
Possible Presidents.
Those now in authority are said to have
rendered the presidency of the company to
Mr.. NJ. H. Smith, president of the Louisville
and Nashville Railroad Company, who is
regarded as one of the ablest and most sue
cessful railway managers in the country.
1t is said that Col Alexander Shaw of Bal
timore, who, as before stated, is the present
chairman of the finance committee of the
Baltimore and Ohio. would be an acceptable
president to j. P. Morgan & Co., should the
control of the road pass into their hands,
but friends of Col Shaw say he would not
accept the position under any circum-
stances.
A control by the Morgan firm, 1t is claimed.
would mean practically q combna ton of the
Southern, Baltimore and Ohio, Philadelphia
and Reading and Jersey Central companies
with the roads in which the Morgan-Van-
derbilt interests have control.
The Philadelphia and Reading, which,
after passing from the hands of its presi-
dent into that Of receivers, back again I'M
der president, and still later to receivers
is now being reorganized by j. p. Morgan
& Co.
Each Road to BE Separate.
1t is anticipated that should such .ombi-
nation of interests as is here suggested &C.
cur, each line will have distinct organiza-
ton, not only for the purpose Of complying
with the laws of the several states through
which each passes, but for the reason that 1t
has been found from the experience of the
Nanderbilts to be really more economical TO
have president for each system, even If he
has to be paid big salary, than to have one
president look after the financial interests
of the whole. Thus while the Vanderbil,s
are the owners of the New York Central
Lake Shore and Michigan Southern, Kansas
own president, while each reports to the
chairman of the executive board of the en-
tire Vanderbilt system, whose Office is in
New York.
Baltimore and Ohio getting into the hands
of j. F. Morgan & Co., that Mr. Samuel
Spencer, now president of the Southern
Railway Company, will have his choice of
remaining at the head of the Southern or
becoming president of the Baltimore and
Ohio.
Despite the Indebtedness of the road. and
the present seemingly discouraging state
OF ITS affairs, the Baltimore and Ohio is re-
.garded as one of the most desirable railroad
properties in the country
THE Baltimore and Ohio" said a promi-
nent Baltimore tnancier to Star reporter,
has never had an opportunity to show
what it could do. 1t has been hampered by
an impeeunious, short-sighted policy that
would Kill airy ordinary road. But under
progressive and wide-awake management
and with proper facilities, such as addition
al sidings and terminals and more cars IL
would soon be on a dividend basis for its
stock.
I'm order to provide for these absolutely
Necessary betterments about 81 900, 600 would
have to be provided which, with the Si.oo0.-
600 for claims which must be soon met
would make some S5,OO0,0O0 to be raised in
the near future. 1t is understood that the
holders of the remainder of the floating
debt, amounting to some $500 600, are will
ing to wait while longer for their money.
A Large Business.
1T is a remarkable fact that a much
larger amount of business Is being offered
to the Baltimore and Ohio than it is able to
carry, and 1T is said that IL they had them,
the company could use 5000 more freight
cars than they now have to advantage.
while the passenger traffic is also up to a
most enviable figure.
THE Baltimore and Ohio has various
things in its favor which are not overlooked
by those who have large sums to invest. 1t
is the shortest line from the west to the
seaboard, and is a trunk line the tracks Of
which cannot be paralleled; IL has monop-
oily of local business, which il has never at
tempted to develop, and If the road is put
in the hands of proper management, with
plenty of money to spend upon IL, il will not
be necessary to have a receivership
1T will take four or five years for the
branch lines to work to paying basis but
those who are in a position to know say
that it is only question of a short time
until these branch lines will begin to paw
the Baltimore and Ohio very handsomely,
and when this is done the troubles which
how aH1 he 60.