San Antonio daily light. [volume] (San Antonio, Tex.) 1886-1907, 1897-09-27
BALTIMORE IND OHIO
Big Suit For Its Fore
clOSureBy Morgan & Co.
WHO WILL INSTITUTE FORE
CLOSURE. PROCEEDINGS IN
OCTOBER.
The Road Is Blocked By Mortgages
And Defaultei Interest And
The Fight Is By Two Big
SyniicateS For The
Property.

New YORK, sept. zi-lHe WoIlu ~
day says:
]. Pierpont Morgan is about to en-
gage in a struggle for the control of
the Baltimore & Ohio railroad. The
fight will come after October l when
Mr.. Morgan, according to good author
ity, will try to seize the property
through foreclosure proceedings.
The receivers of the road will, in be-
half of the Baltimore interests, en-
deavor to forstail Mr.. Morgan. On
October the interest coupons on
s7,744.OOO of bonds of the Chicago d.
vision (the main line) held by ]. p.
Morgan & company, viii have been
three months in default. Under the
agreement made when Morgan & COM
pany took the bonds, foreclosure pro-
ceedings could not begin until ninety
days after such default. 1t is asserted
in Wall street that Mr.. Morgan will
lose no time in beginning suit to take
the road.
Mr.. Morgan has been waiting for
this as is shown by the fact that al
though Charles c. Coster, of the bank
ing house, has secured permission from
I'lhe Federal court for receiverships for
| those branches of the road in Ohio, In
diana and Illinois, no receiver has yet
been named. Mr.. Morgan does not
want to take control of lot of nom
paying branches unless he can get the
main line. 1t is said in Wall street
that Speyer & company, who have adj
vanced money to the Baltimore G. Ohio
company, and the Baltimore interests
represented by the receivers, will OPP
pose Mr.. Morgan tooth and nail. Their
plan, it is said, win be to default or
certain interest payments due on Octo-
Der l to other parties and thus give
an opportunity to contest the NOR
gan suit for foreclosure.
Up to the present the receivers of
the Baltimore & Ohio have defaulted
to the extent of about $4,000, 900 of the
annual fixed charges. In addition,
dividends amounting to s465, 900 per an
mum have been passed and the re-
mainder unpaid on the Washington
branch and Baltimore & Ohio prefer
red stocks.
This gigantic legal battle will be bet
ween ]. P. Morgan & company and
various capitalists who are friendly
to that great house on the one side,
and what may be termed a syndicate,
the members of which in part, are
Speyer & company and other promi-
nent New York bankers on the other,
and ranged with them the Baltimore
interests in the road. 1t can be stated
as a foregone conclusion that the
Baltimore & Ohio will be retained in
its entirety as a system, but at this
time there is every reason to believe
that 1t will be ultimately directed by
j. p. Morgan & company.
suit of the Union Trust company
of New York, trustee of the Baltimore
& Ohio five per cent of 1925 (Pittsburg
and Connellsville second consolidated
mortgage) for foreclosure Of the mort
gage and which WITS entered in the
United States court in this city a few
days ago in which it is claimed that
$40, 600, 100000 Baltimore & Ohio fiyes
of 1925 are a lien pari passu with the
$29, SOC, 900 consolidated five per cent of
1928. is by far the most important con-
troversy up to this time that has arisen
between the creditors of the Baltimore
& Ohio company, and because of the
large amount involved the result will
have a very important bearing upon
the reorganization of the property.
The suit is the result of default of
interest due August on the bonds is
sued under the mortgage. The mort
gage deed provides that in case there
shall be default in hte interest pay
ment for 80 days, the trustee shall
foreclose the mortgage upon the writ
ten request of the holders of one
fourth Of the bonds outstanding.
large number of the bonds issued by
the Baltimore & Ohio, the bill says,
are in the hands Of Speyer & COM
pany, New York bankers. Since Aug
ust /, 1897. the bin also says. the
trustee has been directed by the hold