The daily morning Astorian. [volume] (Astoria, Oregon) 1883-1899, 1896-04-30
SCANDALS ABOUT THE n AND o.
Securities Reported TO Have Heen Sold
for Much Less Than Market Value.

Securities Reported to Have Been Sold
for Much Less Than Market Value.
New York Herald
II was stated yesterday IN Wall street
that the disclosures which are soon 10 be
made In connection with the manage
mcnt of the Raltimors and ohio sail-
road will Involve some distinguished
persons no, supposed 20 have any eN-
ccpt indirect relations with the company.
Those who have watched the company
since iSs are not surprised that the
floating debt has app ar sntly increased
from s.. 90 20 siGOo0.Op0 and that sii.-
O0o,000 OF new securities have been turned
out the use OF which has not been ade-
quately explained: but " several OF the
rumois that are floating around are true
the investigation that Is proposed by
the baltimore committee will make Il
warm for certain OF the former officials.
ns well as the distinguished persons re-
ferred 10.
one Of these circumstances relates to
the alleged sal. OF n lot OF securities to
banking firm at an agreed price. but
before they were delivered the market
value Ia reported to have risen 10 per
cent or more. and an effort was made
to cancel Il. The firm was infiexihle.
and the securities. II Is reported. went
at q sacrifice 20 the company. Boards
of directors are vested with wide latitude
in dlsposlnE OF stocks and bonds. Hence
no criminal liability attaches to the case.
hut n other reports that ARE In cir
eulaton arc true. funds were disposed
OF In way that may cause trouble for
some ono II the Investigation Is ever
pushed TO q conclusion. as the members
OF the Baltimore committee say they in
tend to do. Some OF these circumstances.
Il IL said can be plainly proven by the
books. whHle there formerly existed evil
dencc OF others. but the documents are
now missing.
Tho members OF the New York re-
organization committee have SO far de-
clincd to throw any light on :he dis
closures but they say that they want
the entire affairs OF tho company iaie
before the public before they ask Sc
eurity holders to accept any reSrEaniza-
tion plan. They are In possession OF
most OF the facts but the indications
are that they will be held In allegiance.
as In tho case of the Philadelphia and
Reading and that strenuous effnrts viii
he made by the interested persons 70
have certain things suppressed
A Baltimore dispatch says that 1t ID
rumored In that city that the courts
may bo invoked to compel the Baltimore
and Ohio railroad TO give full account
of the business OF the company during
the peroid that Charles y. Mayer was
president Another meeting OF tho Raj
umore committee will be held In few
days and important developments are
expected,
Major Alexander Shaw. a member OF
the reorganization committee. said that
the New York publications were highly
sensational; that no shortage had beer
discovered. when we investigate" he
said, There is no telling what we may
find. bun up to the present there has
been nothing found savorlng OF dlshon-
esty"
a Washington dispatch says that the
New York members of the reorganiza.
ton committee are in complete control
Of that committee This result has been
brought about largely It Is believed, by
! the action of Miss Mary Garrett the
largest individual stockholder In the
company. II is said that she has with
drawn frOm the support uf the Balti.
more members OF the reorganization, and
that former Judge William A. Fischer
her representative, has resigned from
the committee.
The conclusion drawn is that she will
act with the New York members OF the
committee. and that the John Hopkins
! trustees and other large Baltimore hold-
ers OF Baltimore and Ohio securities will
! act with her, believing that II their prop
erty Is put on q paying basis within q
! reasonable time II must be done through
capital obtained either in New York OF
from European connections OF New
York's great moneyed institutions.