Pike County press. (Milford, Pa.) 1895-1925, 1896-04-03

on the nail spot cash, and the r., w
and 3. shares were handed over to him.
When Robert Garrett awoke on what he
firmly believed was to be the morning
OF his triumph, the newspapers were
full of the deal between the Pennsylva-
MIA and the r., W. and B.
Inexpressibly mortified, ohagrined be-
yond measure, Robert Garrett deter
mined in June, 1886, TO build a line OF
his own to Philadelphia. First IL was
necessary to get legislative permission
to enter Philadelphia. That seemed diff
fcult. The Pennsylvania had the mil
Of all its locomotives with the leeisla-
ture of Pennsylvania and with the Phil
adelphia city councils. The Pennsylva-
mia fought Garrett with all its strength.
But Robert Garrett, on his mettle,
got permission for his road to enter
Philadelphia in 40 days. II cost him
$500, 600. He paid his secret agents
we'll: he advertised literally; he ex-
pended large sums in fees to counsel
There were those who insisted that
it should be spelled council
The Pennsylvania road, finding that
Robert Garrett could get into Philadel-
phia, determined to patch up a truce
with him. They agreed to pay him all
the liabilities he had incurred looking
to the construction of the road to Phil
adelphia. They made other agreements
that would have profited the B. and O. 3,
and Robert Garrett decided not to build
the road. He esti1npted that the project
had already cost 81, 600, 900. The Penn
| sylyania was ready to pay that.
1t had really cost $S,000,00O. The
| Pennsylvania withdrew from the agree
ment The game was not worth the
candle to them. Robert Garrett built his
road. 1t proved fearful drain ON the
B. and o. The road fioated $17, 900, 900
of securities on the strength of that road
between Philadelphia and Baltimore.
But large part of that money was di-
verted to other parts of the B. and O..
system and was dissipated by peculiar
financiering.
The b. and O. found itself on the
brink of insolvency in October, 1887.
Drexel, Morgan g. Co-which is to say,
j. Pierport Morgan-advance the mon
ey that delayed the day of reckoning.
But, before lending a cent, Mr.. Morgan
demanded that Robert Garrett resign
the presidency.
Perhaps he had heard that Robert
Garrett, at that time, owned 140 pairs
Of trousers. It is extremely improbable
that old John W. Garrett ever owned
two pairs of trousers at one time.
Whether or not he knew about the
trousers, Mr.. Morgan surely knew Of
Robert CARROTS eccentricities. In 8
word, Robert CARROTS mind was un-
balanced. He was a paretic.
Samuel Spencer, who was vice presi
dent Of the Baltimore and Ohio, became
president in Mr.. Garrett's stead. Mr.
Spencer is of the firm of Drexel, Nor
gan g. Co. and he is fine railroad man.
He began to economize rapidly. He up
set all the traditions of the Garrett
management. He smashed Baltimore
gods All the Garrett family, all Mary
land, rose in protest.
Miss Mary Garrett, who, of course
inherited a great fortune from her fa
ther, old John W., put her hand in hei
pocket She Loyalty paid off large par
Of the roads obligations to Drexel, Nor
gan g. Co. Then Samuel Spencer had t,
60. Then came Charles +. Mayer q
president. His was an extravagant ad
ministration. During it the once pros
porous railroad steadily sunk deeper an,
deeper in the mire of floating debt, ba,
bookkeeping and the payment of un
earned dividends.
And it is said Stephen Little, the ex
pert accountant who went to Baltimor
to examine the Baltimore and Ohio
books, found the books doctored. Their
are hints of journal entries that bear tn
initials Of the officer requiring them t
be made, thus to relieve the accountan
Of the responsibility.
Enhancement Of the market prices G
securities is made on the books to appea
as income, and no change was mad
, when the value Of the securities agai
declined. 1t is understood, too, that Nj
Little found 100 engines laid up, use
less for want Of repairs.
! John K. Cowen, who resigned hi
seat in congress to become the Bait
more and Ohio's president, is now mad
a receiver Of the property for the Unite
! States courts. He will continue to opel
! ate the railroad much as though nothin
, had happened, but the creditors Of th
company will be told when they pres
their claims You can do nothing, Thi
company is in the hands Of the courts.