Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-08-28
Impending Contest for Control Of the
B. and O. Railroad.
MORGAN SYNDICAfES GREAT SCHEME
importance Of Coming Legal
Battle in BALTIMORE.
THE INTERESTS AT STAKE

1t is no longer a secret among those who
have kept abreast of the movements which
have recently taken place in the financial
world that formidable legal battle for
the control of the Baltimore and Ohio rail-
road Is impending, and will in all proba-
bility be made manifest in the near future.
1t Is understood that the question at is
sue is not whether Receivers Cowen and
Murray shall be continued in the active
| management of the great property which
was placed in their hands about eighteen
months ago, by order of the United States
court at Baltimore; it is whether those
who have invested their money in the
bonds and securities of the road are to
save anything out of the wreck which has
overtaken the Baltimore and Ohio COM
pany, or if the holdings of the original
owners are to pass into he hands of New
York and foreign parties who have only
become interested in the B. and o. during
the last few years, and this mainly as a
matter for speculation.
So far as Receivers Cowen and Murray
are concerned, no who knows what
the road and its equipments were when
| they took complete charge. early in 1895,
can find other than words of praise. Mr..
Murray, who has had the immediate con-
troll of the physical operations of the road
and the extension of its business, it is con-
coded on all sides, has accomplished Won
| ueiS. LESS lIdH fifteen months ago ne had
on his hands thousands of broken-down
cars and hundreds of engines, with which
those previously in control had insisted
the carrying traffic must be conducted and
with which 1t was impossible to handle
even the limited amount of business then
seeking an outlet through it's channels.
At that time 1t was also commonly accept
ed among railroad men that the only good
piece of road owned by the Baltimore and
Ohio was that portion of its system be-
tween Washington and Philadelphia.
The Changes in View.
| But this has all been changed, and before
the expiration of another month almost
| the entire line between this city and the
Ohio river will have been -elaid with
| heavy steel rails of the latest and most
| improved patterns.
| Other great improvements have also been
made: new and powerful engines and the
hest models of passenger cars have been
put into service: new stations have been
built and extensions made in every direc-
| ton: so that for all practical purposes the
Baltimore and Ohio railroad is a transcon-
tiEental line, extending from New York,
through the Reading and Jersey Central, to
the Pacific coast. and from Lakes Michigan
and Erie on the north to the principal ports
| of Mexico, reaching those cities via the
Southern railway and lines over which the
Southern Railway Company, it is generally
understood, Yields a most powerful infu
ence.
While Mr.. Murray has been able to ac-
comDlish so much of benefit to the B. and
o., it should not be forgotten that Mr..
Cowen has not been idle. To him has fall
en- the almost herculean task of looking
after the finances of the road and its nu-
merous legal complications, and if he has
not been able in every instance to keep the
company from defaulting its interest
obligations he has. it is well known, done
| all in his power to bring about a different
\ result.
Il-pOrtnnce of the Road.
The Baltimore and Ohio railroad is the
che great property needed by the house of
| ]. P. Morgan & Co. to give that powerful
concern the practical control of the rail-
way transportation of the United States.
| 1t is not likely that there will ever be an
actual consolidation, at least so far as the
public will be permitted to know. of the
| Southern, B. and O., Reading, Jersey
| Central Lehigh Valley and numerous other
| companies, all now, with the exception of
the B. and O.. in the hands of Mr.. Morgan;
but when it is considered that the Morgan
| syndicate is also largely interested, either
| as bondholder the representative of
| other interests, in the New York Central
| Lake Shore and Michigan Southern, West
| Shore. Northern Pacific, Wisconsin Central
and almost every other important line in
| the country, with the possible exception of
| the Pennsylvania. it can be readily seen
| that his wishes in regard to rates to be
| charged for transportation between all
POINTS other than those on the opposition
| line would be taken as law, while they
| would meet with much respect from even
| those who are competitors in the same line
of business.
! The impending battle as above indicated,
| is one between giants in the banking world.
| On the one side is the firm of ]. P. Morgan
| & Co., backed by unlimited capital, all of
| If necessary, and allied with them are the
| Mercantile Trust and Deposit Company,
Safe Deposit and Trust Company of Balti-
| more, also the Johns Hopkins University
| and many private holders of B. and o.
! stock. which in the aggregate amounts
! to many millions of dollars. 1t is also I'M
| derstood that Major Alexander Shaw CT
| Baltimore, who at the time the roaS went
under the receivership, and for several
| years before. was chairman Of the finance
| committee. has met with much success
| since he went to London few months ago
| on that errand of convincing numcr ous for
| eign bondholders that their interests will
be better cared for II placed in the hands
| of Mr.. Morgan than IL different course
Should be adopted by them.
The Other Side.
Opposed to Mr.. Morgan and those allied
with him are the members of what is
known as the New York reorganization
! committee of the Baltimore and Ohio Rail-
road Company, whose most prominent rep
resentatives are Gen. Louis Fitzgerald,
pany of New York; Speyer & Co. and sew
eral other large banking houses in the big
metropolis, and it is the New York COM
mittee which has directed the financial
operations of the B. and o. since the ap-
pointment of the receivers.
For some time after the New Workers
last mentioned secured control Of the r,ad
they paid promptly all interest rs it came
due, but during the past six months there
has been a manifestation of ''weariness"
in this particular and default has been
made on a number of the bonds Of the road
which for years had been regarded as gilt
edged securities. The reason given for the
default was that the lines upon which the
bonds had been issued had not earned their
fixed charges.
The result of the two suits. one of which
will be heard at Baltimore next month. Is
expected to determine the fate of the Bal
timore and Ohio financially, and on this
point high authority Baltimore and
Ohio affairs today said to Star reporter:
1.-THE suit tn be heard before Judges Golf
and Norris, at Baltimore, is of immense
importance, but is in the interest of the
$10, 0O0, 600 B. and o. SIS of 1925.
THESE bonds are secured by s10.000.Oo0
second consolidated mortgage per cent
bonds of the Pittsburg and Connellsv:Ile