Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-05-23
Baltimore Bankers Believe It a
Strong Probability.
ATTITUDE OF SECURITY HOLDERS
Beginning to Expect They Will
Get Little or Nothing.
IN TIE RE ESTING SSIP

Before the sS 400 600 certificates of in
debtedness authorized by the United States
court at Baltimore to be issued by the
receivers of the Baltimore and Ohio Rail-
road Company have been printed a report
comes from authority entitled to the high
est consideration that 1t will be but
short time before it will be necessary for
the receivers to ask for authority to issue
more certificates of the same kind, and the
holders Of the securities Of the company
which bear date prior to that Of the GER
ti1lcates are 1t is said, beginning to think
that there is but little probability that
they will be able to save anything out Of
the wreck except at great personal sacri-
flee.
In some quarters-notably among those
who heretofore have been best Informed
as to B. and o. affairs-it is thought the
foreclosure and sale of the road is among
the strong probabilities of the near future
This extreme measure will not be resorted
to for several months at least, but in the
opinion of some Baltimore bankers it is
sure to come.
Prediction as to the Purchasers.
1t is easy to predict, should this occur
who will become the owners of the mag
n'fcent Baltimore and Ohio system.
In speaking of the outlook for the Balt-
organization committee said last night to
a Star reporter: 1T is not probable that the
issuing Of receivers certificates will stop
with the present ss,4O0,0oO, as large
amounts have to be spent upon the prop
erty and provision made for liquidating
other obligations. There is, however. much
comfort to be derived from the fact that
during the receivership the property will
be brought Up to a state Of perfection
and that with the road, bridges, culverts,
etc, and rolling stock put in thorough or
der the earning capacity of the road will
be largely increased.
The creation of the sS.40O,OO0 indebted
ness is no doubt unavoidable, and will result
in benefit to the property, but 1t imposes
an additional fixed charge on the company
of $J0O,000 per year, and the principal of
these loans must be provided for when the
day of settlement comes. The Baltimore
and Ohio having defaulted on its bonds
except the 81 100000 as, this defaulted in
terest is drawing interest at per cent.
Value of the Various Stocks.
IF means can be found to cut loose from
the Improbable complications and alliances
put upon the Baltimore and Ohio Company
during recent years, without foreclosure.
the holders of the original Baltimore and
Ohio securities may escape from the wreck
without serious loss. On the contrary,
should foreclosure become necessary, there
is no telling what sacrifices may be required
There is no important change In the price
of Baltimore and Ohio securities. Any
change which has taken place has been gen
orally for the better. Baltimore and Ohio
stock is steady at about IS. First preferred
Is quoted at g. and second at 40. Central
Ohio sold during the past few days at 45,
considerable increase, and due doubtless to
the fact that the receivers of the B. and O.
have arranged to pay their debt of between
100000 and $sO0,o0o to the former in the
a c In, roo
as the receivers certificates are negotiated
which has already been provided for. The
new Baltimore and Ohio 8 per cent equip
ment certificates, which were paid out at
100, and interest, are already in demand at
1Ol is, and interest, and, as the new per
cent receivers certificates are a first lien
upon the entire property, they will doubt
less soon command a good premium
Receiver Murray's Enterprise.
Receiver Murray, who has special charge
Of the traffic matters of the company, con-
tinues to maintain his reputation for ag-
gressiveress in pushing the operations of
the road into new territory, and has Or
dered the putting on of fast freight train
for the transportation of perishable freight,
such as strawberries and other fruits, be-
tween Washington and Baltimore and the
Niagara frontier, Buffalo, Syracuse, Ell
mira, Corning and Rochester and other
points.
The company has also put on another
fast freight train to the west, which reach
es Chicago, St. Louis, Louisville, Cincinnati
ard Columbus and on which freight is car
ried for all points west of st. Louis south
of Cincinnati and west and northwest of
Chicago.
The Mt. Vernon Electric Railroad.
The opinion is general in the best in
formed railroad circles that the opening of
the Washington, Alexandria and Mount
Vernon electric railway will attract much
more general notice than usually attaches
to a road of no greater extent than is this
one, and it is believed that if the line in
operation fultills the expectations of its
builders, but a short time will eapse be-
fore the Pennsylvania Railway Company,
which is a large stockholder in the Wash
ington, Alexandria and Mount Vernon
Company, will convert most of its small
steam roads into electric lines
AS a matter of fact, one Of the most
prominent officials of the Pennsylvania
road said a few days ago in conversation
that his company would during the present
year experiment very largely with cleo
tricity as a motive power for the propuI-
sion of trains, and the organization by the
company of electrical department. to-
gether with the employment of some of
the best electrical experts obtainable is q
confirmation Of what was said by the Off
cial referred to.