The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1896-03-14
Letter from washington.
From our Regular cOrrespondent.l


WASHINGTON, D. c., March 10, 1896.
The fact of the recent collapse Of the Balti-
more and Ohio Railroad Company and its
voluntary confession of insolvency as means
of procuring legal sanction for the continu-
ance of the same mismangement that has
brought this once strong and honest corpora
ton to such sorry plight, has been generally
accepted by the Maryland press as a matter
not unexpected, without any apparent effort
to fix the responsibility for so grave result
Such has not been the attitude, however, OF
the press of other States, notably that of New
York city, the great financial center. The
press of that city has been strong in its de-
nunciation of the completely of the manage
ment of the company and its duplieity and
peculations as inevitably leading up to that
direful result. The New York Sun charged
upon the late president and now receiver of
the corporation the Withholding of the reve-
latiens of false book keeping that have OBJ
tanned since the retirement of President
Spencer, in 1888, as disclosed by the recent
examination of Mr.. Little, an expert account
ant, and said:
For the first time the real condition of the COM
pany was shown, but the style of reports thus in
augurated by Mr.. Spencer was not adopted by his
successor, and stephen Ltte's investigation shows
that the reports of recent years have efectually
concealed mismanagement. both OF finances and of
operation. The annual reports have not shown for
several years back list OF stocks and bonds in the
companys treasury. 1t is known that the S5,000, :
900 par value is still owned but il is pledged in this
city as collateral for loans.
Again, in a recent financial article the Sun
has the following severe arraignment of the
mismanagement that has shrewdly succeeded
in temporarily extending its tenure through
the friendly intervention of the Baltimore
Federal court:
1t is to be regretted that the final collapse of this
sadly mismanaged corporation should be attended
by an event which is in keeping with the record of
the management because of its irredeemably dis
graceful character. The Federal courts, TO which
application was made on Saturday and again today
for the ostensbe protection of all of the creditors
of the company, had an opportunity to rescue the
Baltimore and Ohio railroad from the management
that is chiefly responsible for the disaster that has
overtaken the company They have failed TO i'm
prove that oppOrtilnity on the contrary they
have defied public sentiment by perpetuatng
their servants or agents Il m:nGScmeut notoriouslT
INSCRIPTIONS and culpable. This is the more SUI
prsing in view of recent decisions by various Fed
eral courts adverse to the appointment of socalled
friendly receivers. The interests OF creditors are
not protected by the action of the court sitting in
Baltimore last saturday evening; indeed. that ac-
ton is justice travestied. The court, unwittngy it
may be, has lent itself 10 what appears 10 be con-
spiFcy to maintain the wreckers in churge of the
property they have despoiled. The reorganization
of the company is promptly and seriously handi-
capped by this most deplorable circumstance, and
it is safe to venture the assertion that any reOrgani
zation undertaken under the auspices OF or in con-
nection with the management of the Baltimore and
9
security-holders and hence cannot succeed
1t is a little singular that the Baltimore
Sun, our great Maryland luminary, has failed
utterly. either by reflection or direct rays, TO
throw any of lis slight for ALL upon this very
remarkable transaction. The prominent role
which this mismanaged corporation has been
recently playing in Maryland politics and the
combination il made last fall with certain
capitalistic and other. undemocratic classes in
Baltimore city represented by the Sun paper,
whereby the chief banker of the corporation
was made governor of the State, may throw
some light on this more than discreet reticence
The Delaware election case has occupied
the attention of the Senate for several days
and promises to raise protracted fight. The
chief contention in behalf Of Mr.. Dupont
claim to the seat is based on what is alleged
to be the vital constitutional principle that
the executive and legislative functions of
government ought not TO be consolidated in
the same person. For that reason it is gravely
commended that Mr.. Watson. the speaker of
the senate. should not, while temporarily ex-
ercising the functions of governor, have repre-
scented his constituency in the senate by vot-
ing for a United States Senator. The Demo
Gratis maintain that the temporary exercise by
the speaker of the senate of the functions of
the accidentally vacant governorShip is merely
an incident which the Constitution of Della
ware peremtorily attaches to the speallership.
1t is shown that on five previous occasions in
The history of Delaware underits present con-
slitution the speaker of the senate, after hav-
ing temporarily exercised the functions of
governor in a similar emergency, has, after
the emergency passed away, resumed his du-
ties as senator This well-established inter
probation of their own constitution by the peo-
pie of Delaware proves that there was no va
cancy in Mr.. Watson ) seat in the senate which
his constituents had right to fill, and there
fore if Mr.. Watson should be denied the right
to represent his constituency in voting for
United States Senator upon any sentimental
notion of consolidating executive and legisla-
tive functions, thereby depriving one-ninth of
the people of the State of representation in this
matter, it would be in manifest contravention
of that great and vital principle interdictng
taxation without representation. 1t is said
that the Republicans of the Senate are solid in
favor of seating Mr.. Dupont, but when the in
trinity of his case from legal standpoint is
considered, there is disposition to doubt
whether this will prove to be the case.
tFRITAS