The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-09-30
WILL TRY TO F0RECLOSE
MIR. PHILIP AVERITT EMPLOYED
AS COUNSEL.
TO FIGHT THE GREAT RAILROAD KING
The Matter viii Come up on October |, and
The Greatest Legal Battle in Recent
Years viii be Precipitated
0vcr II

Mr.. Philip w. Averitt, who has ap
peaed IN the North Carolina lease case
az attorney for the North Carolina
Railroad, and has SO ably assisted II
the conduct Of the recent investigation
has been retained by certain private
parties In Maryland, who will resist the
foreclosure of the mortgage for ", 444,'
600 on the Chicago division or the
main line of the Baltimore and Ohio
Railroad. held by J. p. Morgan & Co.
This suit will be a fight between
Morgan & Co. and citizens OF Mary
land, backed by Speyer 4 Co. and 9TH
ers, and will come up on October LIST.
At that time the interest coupons on
1874. 600 of bonds of the Chicago d.
vision 1.-THE main line). held by j. r.
Morgan & Co., will have been three
months in default. Under the agreement
made when Morgan & Co. took the
bonds. foreclosure proceedings could not
begin until ninety days after such de-
fault. 1t asserted in New York that
Mr.. Morgan will lose no time after Oc-
tober LIST in beginning suit to take the
road.
But the fnancier is going to have a
fight ON his hands before he secures this
property. 1t is said, however, that
Speyer & Co., who have advanced mon
ey to the Baltimore and Ohio Company
and the Baltimore interests represented
by the receivers, will oppose Mr.. Nor
gan tooth and nail. Their plan, 1t is
said, will be to default on certain inter-
est payments due on October LIST to
other parties and thus give an opportu-
nifty to contest the Morgan suit for fore
closure.
-
Up to the present the receivers OF the
Baltimore and Ohio have defaulted to
the extent of about S3,000,O00 of the
annual fixed charges. In addition, d.vi-
dends amounting to $465,0O0 per an
mum have been passed and remain I'M
paid ON the Washington branch and
Baltimore and onio preferred stocks.
Pierpont Morgan, now practically con-
trolls every great railroad running east
to New York, save two-the Baltimore
and Clio and the Pennsylvania
Railroad and Is already the
master of the anthracite coal bus!-
ness of tie country. Ii he gets the
B. and o., the great banker viii be the
absolute dictator Of the railroad business
Of the East and South. Or the great
trunk lines the Pennsylvania will then
be the only one not in his grasp.
the Baltimore and Ohio road, although
greatly bur.ened by non-supporting
branches, may be again made one of the
greatest of the railway properties in this
country. It's value easily reaches up into
the hundreds of millions.
The fight for this railway has been
going on for some time. Long ago Nor
gan & Co. advanced money to the COM
pany and managed its affairs through
Samuel Spencer, Of the banking house,
who became its president. The Garrett
and Johns Hopkins University interests
united to GUST Spencer, and then fol.
lowed the administration that by reck-
less methods bankrupted the road and
threw it into the nands of receivers.
Owing to his other vast railway inter
ests, it is necessary for their protection
that the Baltimore and Ohio be brought
under the coutrol of Mr.. Morgan. I'm
der the receivers the Baltimore and
Ohio has been skirmishing for business
without regard to rates or agreements.
These free lance methods greatly in
terfere with Mr.. Morgan's railway trust,
his trunk line traffic and passenger
pools So there is no question that he will
make tremendous effort to seize this
property.