The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-07-11
NEW RAILS FOR THE B. 60.
JUDGE corr GRANTS THE REOEIV-
PETITION.
Ne says the Couditien OF the Read should Ne
Kept Up-ChnnEe in the Form OF the New
suit That IL uHtsnded to BrinE About Fore-
cto-ur, proccaatnr~-0na nm "a ma nne,t.

ne says the Condit,en OF the Read should Ne
Kept Up-Chnnge in the Form, OF the New
suit That II Intended to Bring About Fore-
closure ProcoodinEH-eosO o 70 Ne spent.
BALTIMORE. Jolly 1o.-The arguments against
granting tho receivers of the Baltimore and
Ohio Railroad permission to Issue $3.50 900
worth OF receivers certificates for the purchase
of 40, 600 tons of stool rails, to DO used on tho
main line cast OF tho Ohio River, wero concluded
lato this afternoon. and Immediately afterward
Judge Goff OF the United States Circuit Court.
who was sitting with Judge Morris Of the United
States District Court, granted the permission.
Judge Morris dissented, but as Judge Con Is tho
ranking Judge the receivers gained the victory.
Next week the court will pass upon the petition
presented yesterday. in which the receivers
nsked permission to issue 100000 adj
ditional certificates. Immediately aftorward
the Judges. upon application OF tho roads
attorneys. modified their order issued yes
tcrday authorizing counsel for tho trustees OF
FL 600, 900 mortgage bondholdors OF the Balti-
moro and Ohio and Chicago Railway to bring
suit in tho United States courts Of In
diana, Ohio, and Illinois to forecloso the mort
cages. When Messrs. Marbarbury & Stoton
asked leave yesterday to sue. Mr.. Bond. for the
company, readily agreed to an ordor giving such
authority. On looking over the order ho found
that separate receivers for tho Baltimore and
Ohio and Chicago Railway and tho Akron
and Chicago Junction Railway were to DO
asked for, and Mr.. Bond changed his mind.
He said that for tho protection Of tho
court under whose jurisdiction the receivers
of tho property are acting 1t would be necessary
to modify the order. Its scope was too broad. II
q suit under the order is brought in tho courts
of Cincinnati, tho courts there might appoint q
receiver. The receiver might take immediate
"a alt- .--A - .lA ---I Tl.A 49,
would no longer DO under the jurisdiction of the
court at Baltimore, and there might be great
difficulty in procuring q proper accounting be-
tween the baltimore and Ohio and Chicago
Railroad and The main property In the posses
sion OF Mossrs. cowen and murray. o,.rors D.,
give up possession Internationally OF this part
of the road. An expensive outlay had been
property should be reimbursed.
1t was then decided by the Court to suspend
ing that IL the receivers were to be attacked it
must be done in this court. Meantime tho pa,
s ,mUre t 4 %netition ior antbnrity TO suel The
case will be heard In about three weeks. and now
seems likely to be fought from beginning to end;
The part for foreclosure will nfterwnrd be filed
in Cincinnati. Tho foreclosure Of the mortgage
will probably mako necessary q reorganization
seems now to be fully recognized by the re-
ceivers. There Is q strong belief that the bank
who are known to be opposed to the policy O! tho
receivers of the Baltimore and Ohio. are behind
the various moves that have boon made against
the receivers ofthe Baltimore and Ohio. and that
their interest is due to their desire to secure con-
troll of the Baltimore and Ohio whom 1t Is reor-
Ranized.
In his decision as to the new rails Judge Con
said that those who opposed the petition did SO
without denying a single allegation in the petit
with certificates. They relied chieny upon the
was no absolute necessity at this time for such
a quantity Of rails. The evidence in the case
showed a very strong preponderance that the
the actions Of the directors it was quite evident
that tho contrary could not be shown,
Judge Golf touched on the charge that the In
debtedness of tho road has been largely in
creased, and said that such was not the case. In
regard to the first 5000. 600 of certificates, he
said that the situation was unusual. The issue
Of certificates for rolling stock was also done
with the assent of parties to this controversy,
and the manner in which 1t was done would not
deprive the bondholders OF one dollar. The Mary.
land constructions certificates did not increase tho
debt, as it was merely a substitution. 1t WAS
conceded in the beginning. that 1t was best for
the Baltimore and Ohio Railroad that these OK
penditures DO made.
Judge Gon said that 1t seemed to him that the
proper and economical administrator Of tho
road demands that the rails shall be laid at tho
present time. He could not see why those who
had acquiesced in the Issuing Of former certif-
Gates should object now, as the original idea
was to prevent the disruption OF the system.