The San Francisco call., 1896-03-01

tnat the plan pTopoSeu "ouiu o0 "Aof
in time to meet the company's require
ments.
"After full consultation, however, it was
found to be inexpedient to carry out all
the details of the plan without the aid OF
the court. and for that reason 1t became
necessary for the railroad company and
the Mercantile Trust Company of New
York. representing the syndicate which
has been aiding the company, to begin q
friendly suit for the appointment of re-
ceivers, who should hold the property and
operate it pending the conSummation OF
plan for its reorganization.
with that in view, the Mercantile
Trust Company applied to the United
States Circuit Court for the District of
Maryland, and upon its application two
receivers have been appointed, viz: John
K. Cowen and Oscar G. Murray.
"Prior to the commencement of the suit,
however, the whole matter was laid before
the board of directors of the company,
and they unanimously passed resolution
authorizing the company's officers to con-
fess iud lment in favor of the Mercantile
Trust Company for the amount of the
debt due to that company held by 1t on
behalf of the syndicate and consenting to
the appointment of receivers for the prop
erty. The board at the same time passed
a resolution requesting the New 1ork
member OF the board, who have been
preparing plan for the rehabilitation OF
the company without the foreclosure OF
any of the company mortgages, to organ
ize themselves as committee, with power
to add to their number, or to associate
with them a committee in London for the
protection of the interests of all the secur
ity and share holders, with view to the
immediate reorganization of the company
and its affairs.
"These gentlemen will continue in this
effort and they expect to have appointed
in London another committee of security
or shareholders to operate with them in
the presentation of a plan which will have
for its object the extinguishment OF the
entire floating debt of the company and
the furnishing of new capital and the
placing of the cOmpany's finances upon a
firm and stable basis.
1.-THE board of directors and the officers
of the company greatly regret the neces
sity of asking the Intervention of the court.
but the demands upon the company were
so pressing 1t was impossible to deal with
the subject of adjustment without grant
ing the delay which arises from receiver
ship and the administration of the prop
erty under the orders of judicial tri-
bunaL
"The persistent rumors spread through
the public press to the effect that the re-
port of the noted expert, Stephen Little,
did not confirm the report OF the COM
pany's accounting officers made to the
syndicate under date of February /, 1886,
are entirely without foundation. On the
contrary, Mr.. Little's examination fully
confirms the report of the company's ac-
counting officers made February L. 1886,
OF the eompanys floating Indebtedness,
income. etc. There is no basis whatever
for such rumors heretofore passing
through the public prints"
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, un-
der the courts order, is continued pre-
cisely as it was under the company.
The history of the Baltimore and Ohio
is the history of railroad enterprise in this
country. 1t is the Oldest chartered rail-
road in America and the oldest passenger
railroad in the world. Ground was broken
for the enterprise on July 4, 1923, by the
only then surviving signer of the
Declaration of Independence, Charles
Carroll of Carroflton. No one supposed
that it would be anything but horse rail-
hala bo ol
intention to extend it's operations to the
Ohio River, and the name by which it is
known today is the name by which it was
christened.
On the 22d of May, $780, the road was
opened for business from Baltimore to
Ellicotts Mills, thirteen miles. The first
American passenger-car then used was
about twelve feet Ieng. One horse was at
tached, and he was good for eight miles an
hour, carrying twenty-five passengers.
The first American locomotive ever con-
structed was tried upon this road, being
the handiwork of Peter Cooper. 1t then
drew the first passenger-car ever pro-
PEELED by steam upon any railroad in the
world august 2s, 1S3O), Mr.. Cooper acting
as engineer. 1t is also recorded that on
his thumb, which may be set down as the
first railroad casualty in history.
The road was opened to Washington
August 25, 1885; to Cum berland, Novem-
Der 5, 1912; to the Ohio River at Wheeling,
w. Va, January 1. 1858; to Cincinnati and
st. Louis, June 4, 1857, and to Chicago,
November %, 1873.
The announcement that receivers had
been appointed for this time-honored in
stitution spread with lightning-like ra-
pidity, and was the chief topic of dis
cussion on the streets, at the hotels and
clubs tonight.
( At midnight the Baltimore and Ohio
building, usually shrouded in darkness
with the sinking of the sun, was bril-
llantly lighted. and Receivers Cowen and
Murray were the center of large group of
interested persons engaged in discussing
the outlook for the property. In the
group were several old friends of the Gar
rett family, who were only half successful
in concealing their misery over the COL
lapse OF the road, in which the CARROTS
had been and are very largely interested,
and which but few years ago boasted of
an undivided surplus of millions in its
treasury.