Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-04-23
PRESIDENT SPENCER
Said to Be the Actual Head of the
Baltimore and Ohio.
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HR. MOEGAN'S THREE DEMANDS
Difficulty in Securing Thorough
Investigation.
MIR. layers D TIE S

Hldlly elected preSlGent the BaltlmOre
and Ohio Railroad Company also, but the
statement was made last evening by a
high official of the Southern, who is in
position to know. that Mr.. Spencer is to-
day practically at the head of both organ
izations, and is as much directing the i'm
portant financial operations of the B. and
o. as he is of the magnificent railway sys-
TEN which he has built up through the
mOneyed support afforded by the house of
j. Pierpont Morgan & Co. upon the wreck
of the Richmond and Danville system.
The articles in reference to the B. and o.
which have appeared in The Star during
the past three days, especially the expose
on Monday, in which it was shown that
there is Il large sum of money which has
yet to be accounted for to the owners of
the b. and o. property, have produced a
stir in the commercial world to which
there is event of recent years that can
be compared since the time, some years
ago, when Gen. Sckes headed force of
men and made charge on the late Jay
Gould, who was intrenched at the Erie
railway offices in the Grand Opera House.
New York, and compelled that eminent
fnanc.er to disgogge 9CU0oUO belonging
to the stock and bOndholders of the Erie
company.
Investigation Difficult.
While it is the avowed purpose of the
Baltimore committee of reorganization of
the b. and o. to insist upon complete
Investigation of the affairs of the com
Pany during the administration of Presi-
dent Mayer, it is becoming evident that
they will have to invoke the aid of the
United States courts to enable them to
do this. II IS doubtful however, If this
course viii produce the result desired by
the Baltimore coIsrnittee before the road is
reorganlZed under the direction of ]. p.
Morgan & Co and those affiliated with
that house, as the issuance of a writ
of mdndamus by the court III Baltimore
would undoubtedly be delayed by the re-
CeiverS, who would appeal il from court
10 court until the was finally dis
posed of in the United States Supreme
Court, as the court of last resort. and in
the ordinary course of events this would
require several years. Receiver Cowen.
who il is worthy CT note, has not resigned
Lis position as general counsel of the B.
and o., er joys a great reputation as an
appeiler,' and that he would follow his
precedents in the proposed mandamus case
may he predicted without fear that the
statement VIII be contradicted.
The Jltimatum.
Meanwhile Mr.. Stephen Little who is
one Of the greltest expert accountants in
the country and has had wide expert
enCe in the examination of railroad ac-
counts. is engaged in trying to unravel the
affairs of the BaltiEnOra and Ohio. as con-
Quoted from the accession of Mr.. Mayer to
the presidency, in lSSS. to the time of his
withdrawal therefrom, in the latter part of
1915.
While Mr.. Little has, when questioned on
the subject refused to talk on Baltimore
and Ohio affairs to any Cne but those by
whom he is employed, the statement can
be made on the highest authoritv that his
first report to Mr.. Morgan resulted in an
uitimdtum from the later to those who
were seeking his financial aid for the Bal
tinore and Ohio that unless certain high
official left The service of the COMPANY the
road was divorced from politics and Sam
uel Spencer made preside 41t," he would
n y-+-T
The first and second of these demands
have already been practically compile,
with, and took place when the Baltimore
ard Chio went into the hands of the re-
ceivets, while the position of Mr. Spencer
IN regard to the company is fully stated
above.
The Philadelphia Division
1t is asserted that the books of the Bal
tlmore and Ohio show that the sum of
$'1ooooG has been taken from the treas
ury of the company and spent for political
purposes, and it is proposed to find out
who got this money.
To do this ii is stated that IL will ba moo
essary to investigate the matter of the
construction of the Philadelphia division of
the road, the cost of which has never heen
ihade Know TO the general stockholders
but which has been variously estimated at
from St2ApVD to S2oGo0ODO and 1t is pre-
!ncted that when the report of the manner
IN which the Baltimore and Ohio obtained
an entrance into Philadelphia is made
known some very prominent politicians of
that city will have reason to wish that
those who are now directing the affairs of
tne Baltimore and Ohio had never reached
that position.
1t is true that the PHILADELPHIA division
was built in the most thorough manner
put that = road less than a hundred miles
In length, having no tunnels except two or
three III the suburbs of Philadelphia and
with very few expensive bridges, should
cost an average of $4,000 a mile is il is
said. regarded as a matter that is worthy
OF thorough investigation. As a matter of
lact' 1t was the building OF this division
III, vas me beginning of the really great
troubles Of the Baltimore and Ohio for il
was not III til within the last year or two
that Its earnings have been anything like
as much as the expenses. and the deficien-
cy mad to be provided for from other
sources.
The construction of the road was how
ever, an absolute necessity in order to
Keep the Baltimore and Ohio from hecom
Ing bottled" up at Baltimore n condition
OF affairs which the Pennsylvania Com
pany mad been trying to accomplish for
years, and nearly succeeded.
Mr. Mayors Duties.
Information received today is to the ef-
feet that the counsel for the Baltimore re-
organization committee have the papers
ready for filing asking the court to order
Receivers Cowen and Murray to allow
them 10 rave an expert examine the books
Oh the company for the seven wears pre-
SediI'S the period of the election of Mr.
ICWen as president few months ago, but
that they are delaying the matter for sew
erai days in order to give the receivers an
opportunity to reply to letter sent bv
them 70 The receiver; few days ago The
statement in yesterdays Star tnat the re-
ceIFCIs. acting nder instructions from The
New York CO mmittee, will refuse the re-
guest Is also confirmed by the latest ad-
vices. ~
IL is now seid that one of the matters
which will he looked into by the authorized
Parties, and concerning which no mention
mas heretofore been made, is the action of
the directors in increasing the annual sal
ery OF President Mayer from $3.50 to SiO-
700, and so far il has not been discovered
JEST when it was done
1t Is claimed that the services of Mr.
mayer were not of such great value to the
baltimore and Ohio as to entitle him 10
tne mun!hcent salary of $4,000 per year.
his railroad experience previous to his
election as president of the Baltimore and
ohlo IS represented to have been limited
10 the presidency of the Cumberland ~