Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-07-01
Mr.. Titles REPORT
The Expert Accountants Work on
B. and 0. Records.
SOME INTERESTING DEVELOPMENTS
More important Purchases by J.
P. Morgan & Co.
E M P 10y ES' p A SIS E s
SOME INTERESTING DEVELOPMENTS
E M P 10y ES' 2 A s s E s

1t IL understood that the long-expected
report of Mr.. Stephen Little. the expert
accountant, who. for several months past.
has been examining the books of the Bal
timore and Ohio Railroad Company, will be
made to the New York reorganization COM
mittee in the course Of day or two. GER
tainy, unless something unforeseen should
occur. before the close Of the present week.
1t Is considered as probable that the Baiti-
more reorganization committee will be fur
nished with a copy Of the interesting docu-
ment, but it is believed that the general
business public will not be SO favored.
The readers Of The Star will remember
that soon after the appointment Of Presi-
dent John K. Cowen and Vice President
Oscar G. Murray to be receivers Of the Bal
timore and Ohio, the Now York holders Of
the securities Of the company. headed by ].
p. Morgan Co., appointed a committee on
reorganization charged with the duty Of
devising plan which would result I'm TAX
ing the road out Of the hands of the re-
ceivers and putting 1t again under the con-
tIoi OF It's owners To the minds of the
holders of Baltimore and Ohio securities in
Baltimore the plan presented the very ser
ious objection that they were not looked
after very closely, and that it appeared as
though, under the New York plan 1t was
not improbable that they would be lost
sight OF altogether. A meeting of the dis
satisfied holders was then held, and a COM
mittee, known as the Baltimore reorganiUa-
ton committee, whose constituents were
said to have between $30,UO0,OOO and So
100000 invested in the road, was ap-
pointed.
For some time the members of the Balti-
more committee proclaimed their intention
to probe Baltimore and Ohio affairs to the
bottom, but suddenly they became extreme
~ quiet, and 1t is said that the promise of
a NnTxy of NJ fxH11
induced them to allow matters to remain in
statu quo until the appearance of that
document, when, IL the showing of the
companys affairs is not what they have
reason TO expect, they will proceed to have
an investigation made by an expert Of their
own selection.
An Exhaustive Inquiry.
1t Is said that Mr.. Little has made a far
more exhaustive report than his employers,
the New York committee, intended when he
was first engaged by them, and it is under
stood that he has gone down far deeper in
to the details Of the past management than
was at first thought necessary, while it is
also learned from good authority that the
report will be not only upon the present
and past condition Of the property, but also
upon the causes that brought about these
conditions and upon whom rests the re-
sponsbility for the mistakes of Judgment
mat nave been found. 1t is further under
stood that, according TO Mr. Little's opinion
there has been no dishonest diversion of the
company's funds, while many of the ex-
penditures may have been unwise. 1t will
also be shown by the report, 1t is said that
the company was able to earn its fixed
charges every year, and it is believed that
although the net floating debt is, as here
tofore reported, about S16.000,0O0, yet so
long as the road can earn its fixed charges
II Is believed that some plan can be devised
without using undue severity on any of the
securities.
ia
VIII show the exact relationship from a
financial standpoint of the various subsidi-
airy companies to the main system the
revenue, expenditures and loans, and that
various other important facts bearing on
the property will be set forth.
Mr.. Morsan's New Deal.
The intimate business relations existing
between the Southern and the Baltimore
and Ohio Railway Companies, with both
of which Mr.. ]. P. Morgan is Intimately
identified, render the fact that the syndi-
cate Of which Mr.. Morgan is the controlling
spirit today takes possession of the St
Louis and San Francisco railroad and will
hereafter operate 1t an event Of local in
terest. The road was sold Saturday last
under the hammer, as the result of the
foreclosure of an old mortgage, of which
the Mercs ntile Trust Company of New
York was trustee. There was but one bid
and the road was sold for 81 30 600 the
upset price, payable in cash, to a commit
tee OF bondholders representing the reor-
ganization committee. new company
has already been Incorporated under the
name of the St. Louis and San Francisco
Railroad Company, with q capital of $780,
100000, divided into 10000 shares of 500
each. Mr.. D. B. Robinson formerly of the
Santa Fe road, and said to be one of the
finest operating men in the country has
been appointed president and the board of
directors will consist of ]. Kennedy Tod of
]. P. Morgan Co., I. n. Sehgman, j. A.
Blair, Horace Porter, Edward C. Hender-
son and Fred Stratus Of New York, Benja-
min P Cheney and William T. Hart Of
Boston, Samuel C. Eastman of Concord
N. H; Charles s. Gleed of Topeka Kan;
Daniel B. Robinson. Richard c. Kerens and
George A. Madill of st. Louis. The head
quarters of the new company will be in
St Louis, and an assistant secretary and
the treasurer will he located in New York
The st. Louis and San Francisco railway
has mileage of little more than ], 43O
miles, and extends to a large number of
points in Missouri, Arkansas, Texas Kan
sas. Colorado, Utah, New and Old Mexico
Arizona and by connections in California.
For considerable period prior to the sale
1t was in the hands of receivers, and the
plan of reorganization was, it is said, de-
vised under the inspiration Of Messrs. j. p.
Morgan & Company.
b. and o. Employer Passes.
For some time past there has been con-
siderable fear among many of the employees
of the g. and o. Railroad Company, who
have been in the habit of travelling between
their homes and their places Of business on
passes, as to whether they would not be
taken away from them after July l. and
nominal rate of fare substituted, as has
been the course adopted by the Pennsyl-
von!a Railroad Company. 1t is learned that
the receivers of the B. and o. at one time
seriously contemplated following the lead
of the Pennsylvania in this matter, but at
the last moment decided not to do so at
present, and yesterday the passes were
be taken in the matter for the present
but 1t is believed by those best informed
that the change is but a question of a
short time.
The approximate earnings of the Bal
timore and Ohio for May, the exact figures
not being as yet obtainable, were nearly
81, 600 600 an increase of about S175.OOO, as