Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1897-09-27
FOR A WHOLE RAILROAD
LOS ANGELES TO SALT LAKE BY RAIL.



An Associated Press dispatch from
New York today, Sept. 81. says that
the World OF that city announces that
j. Pierpont Morgan Is about to engage
in Il struggle for the control Of the
Baltimore and Ohio railway The fight
win come after October l. when Mr..
Morgan, according to good authority,
VIII try to seize the property through
foreclosure proceedings
The receivers Of the road will, in
both Of the Baltimore interests and
certain New Yorl. interests. endeavor
10 forestall Mr.. Morgan. on October
J. tho interest coupons on S774i,OOO Of
bonds Of the Chicago division Cthe
main line), held by ]. p. Morgan and
company. will have been three months
in default. Under the agreement made
when Morgan and company took the
bonds. foreclosure proceedings could
not begin until ninety days after such
! default 1t Is asserted In Wall street
1 that Mr. Morgan will lose no time in
beginning suit to take the road.
| Ihat Mr.. Morgan has been waiting
] Tor TINS Is shown by the fact that al
! though Charles II. Coster, of the
! banking house, has secured permission
| ships for those branches of the road in
OHIO Indiana and Illinois. no receivers
! nave yet been named. Mr. Morgan
| does not want to take control of n lot
OF non-paying branches unless he can
/ get the main line. 1t is said in Wall
street that Speyer and company, who
! have advanced money to the Bnlti-
| more and ohio company and the Balti-
more interests represented by the re-
! cCivers Will oppose Mr. Morgan tooth
| and nail. Their ulur 10 euf
be to default on certain interest pay
ments due october L. to other parties
ana thus give an opportunity to con-
test the Morgan suit for foreclosure
Up to the present the receivers of
the Baltimore and ohio have default
ed TO the extent OF about S3,O00,001 OF
the annual fixed charges. In addition
dividends amounting to SiGj. 900 per
annum have been passed, ard to re-
main unpaid on the Washington
| branch and Baltimore and Ohio pre-
ferred stocks.
This gigantic legal battle will be
between j. Il. Morgan and company
and various capitalists who are friend
~ to that great house ON the one side
what may be termed syndicate, the
members of which, in part, are Speyer
and company and other prominent
New York bankers on the other.
ranged with them the Baltimore inter-
ests In the road 1t can be stated in
conclusion that the Baltimore and
Ohio Will he retained in its entirety as
a system, but at this time there Is
every reason to believe that It will be
ultimately directed by j. Z. Morgan
and company
suit of the Union Tiust company
OF New York, trustee of the Baltimore
ana Ohio per cent of 1926 (Pittsburg
ana Connellsville second consolidated
mortgage) for foreclosure of the mort
gagees which was entered In the Uni
ted states court in this city a few days
ago, in which II is claimed that the
slOOOO,OOO Baltimore and Ohio fives of
1913 are lien pari parru with the
S25,6OO,OOO consolidated per cents OF
l32S Is 10y far the most important con-
troversy which has up TO this time
arisen between the creditors of the
Baltimore and Ohio company. and be-
cause OF the large amount involved,
the result VIII have a very important
bearing upon the reorganization Of the
property.
The suit is the result Of the default
OF Interest due Aug. LIST ON the bonds
issued under the mortgage. The mort
gage deed provides that in case there
shall be default in the interest pay
ment for ninety days the trustees shall
foreclosc the mortgage upon the writ
ten request Of the holders of one-fourth
OF the bonds outstanding. a large num-
Der of the bonds issued by the
baltimore and Ohio, the bill says,
are In the hands Of Speyer and com
isAASH .NfN i'm DdtlktTB. since Aug.
i,lSg6. the bin also says, the trusted
has been directed by the holders of
more than one-quarter in amount OF
the outstanding bonds to take the
necessary steps to foreelose the mort
gage.
In this portion of the controversy ].
+. Morgan and company, the mercan-
tile trust company of New York and
receivers Cowen and Murray, appear to
be on the one side and Messrs. Speyer
~
anticipated that when It comes to a
final settlement It viii be j. p. Morgan
and company against the field.
j. +. Morgan not only represents tho
consolidated mortgage bondholders but ,
the Sterling and other mortgages
which nre prior liens to the consolidate
ed mortgage. and unless some compro-
mise is reached will, 1t is understood.
antagonize any plan OF reorganization
which may be offered by the receivers.
II Is stated on the authority OF a
banker who is largely Interested In
Baltimore and Ohio bonds and other
securities that soon after receivers
Cowen and Murray took charge Of tho
property. J. p. Morgan and company
We're solicited to take an active inter
est In the affairs OF the company and
to advance the necessary funds to nut
the road on n sound basis, and that
utter n cursory examination OF the
affairs Of the road Mr.. Morgan declined
to Invest any more money unless four
mon whom he named were retired
from the comuany's service. These
were John y. Cowen. long the general
counsel Of the road now one Of the re-
ceivers; F. r. bacon and william +.
Frcll. nf the board of directors and
Thos NJ. King. second vice president.
OF those mentioned Mr. Frick, father
in-luw Of the late Robert Garrett, and
Mr.. King dropped ont months ago, and
Mr.. bacon viii. II IS no longer denied.
20 about November 1. MT Morgau's
demand was declined at the time IL
was made and Speyer and company
mud some other New York bankers
We're induced to take Mr.. Morgnn's
place.
Los ANGELES AND SALT LAKE.
Promise of the California & Eastern Maxi