The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1896-03-01
GONE TO THE WALL
BALTIMORE AND OHIO RAILROADS
JUSTIPIBS FEARS.
After Long Strug gle Against the Inevit-
able the System Finally Succumbs and
Goes in the Receivership List-To be
Managed by President Cowen and Third
Vice President Murray for the Benefit
of Creditors and OBSERVATION-DISCLOSURES
ton of the Great System-Detailed In
debtedness of the Road.

ton of the Great System-Detailed In
debtedness OF the Road.
Baltimore, Nd, Feb. 29.-The Balti-
more and Ohio company, one OF he oid-
est and most extensive transportation
systems in the United States, and until
recently one of the most profitable, has
confessed its insolvency and gone in;o
the hands of receivers.
John K. Cowen, It's president, and
Osacr G.. Murray, its third vice presI-
dent, will hereafter operate il for the
benefit OF the creditors and bondholders
under the direction Of the United States
court
This action was taken tonight after a
prolonged struggle against the inevlta-
bic. and was the immediate result Of the
failure of the directors 10 negotiate
lonas 10 provide for interest and other
payments due, and about 10 become due,
For several years. however, the road
has been losing money and, while the
collapse, coming al this time, was sur
prise to many, but few believed that
it could be averted much longer. Since
| the last regular meeting of the direc-
tors, two weeks ago, Major Alexander
Shaw, chairman of the finance commit
tee, and President Cowen have spent a
| great deal of time in New York, endeav-
| oring 10 borrow enough money to pro-
| vide for a large floating debt and pay
| ments of interest amounting to 100000,
| falling due on Monday next.
TOO BIG AN UNDERTAKING.
It was thought at one time that they
would be successful but President Cow
en- gave up the fight and returned to
this city yesterday. Immediately on
his arrival he called meeting Of the
directors for this afternoon. This was
fully attended. After a session lasting
an hour and a half the directors and
legal officials of the road repaired to the
| United States court room in the federal
building and General Counsel Hugh
Bond filed an application on behalf of
| the directors, asking for the appoint
| ment of receivers upon the showing
| made in the petition that. the company
was insolvent. United States Circuit
Judge Golf, of West Virginia, who had
| been called here for that purpose, in
| conjunction with United States District
Judge Morris, heard che application and
there being no objections, granted it.
All reporters were excluded from the
| court room and the hearing was strict
| ly private.
THE RECEIVERS.
Mr.. Murray, the other receiver, who
| had been third vice president of the Big
Four system, was invited to accept a
| similar position in the Baltimore and
| Ohio service. He consented and has
since been acting in that capacity.
Mr.. Cowen is also a member of con-
gress from the Fourth Maryland dis
| trfct, and is the leader Of the Democrat
| ic to United States Sena tor German. He
| is 81 years old and a native Of Ohio.
The Baltimore and Ohio system in
| cludes 2,O65 miles of railway. extending
into all parts of the country east of the
Mississippi river. 1t was one of the
first railways built in the United States
and for many years was considered the
most reliable and profitable. Under the
management of the late John w. Gar
rett, of this city, it attained an enyia-
BILE position among the interstate-earn-
ing and dividend-paying lines in the
country, and it's securities were looked
upon as gilt-edged. It's stocks and
bonds are largely held for investment
purposes in this city, where the receiv-
ership is looked upon as almost a pub
lie calamity.
Johns Hopkins university is one Of the
largest holders Of its preferred stock,
and the loss of revenue from that source
will be heavily felt by the institution
THE COMPANY'S STOCK.
The stock of the company is $S0,000.
600, divided as follows: First preferred
SO, 0O0, 900; second preferred S2,000O00;
common and scrip s25,0O0O00. It's bond
ed indebtedness, according 10 Poor's
manual for 1895, is 100000 and its
floating debt is thought to be between
$40. 600, 900 and $l2.O00.0O0. 1t OWES and
lease twenty-nine different roads in
Maryland, Virginia, West Virginia,
Pennsylvania, Ohio and Illinois. includ-
ing some of great Importance. The Bal
timore and Ohio company is the guar
anbor of rents amounting to Sl.157,350
on leased lines, and for interest on
| bonds in double that amount. Its char
ter was granted in 1927. and some Of the
greatest historical events of the country
center around ii.
Charles F. Mayor, who succeeded
John w. Garrett as president. held the
place for five years, until the election OF
John K. Cowen to the presidency few
weeks a2n