The times., 1897-07-11
B. AND D. RECEIVERS WIN
Granted Permission to Purchase
10000 Tons Of Steel Rails.
DECISION OF JUDGE GOFF
He Finds That the Rails Are Neees-
sary and TO Refuse to Allow Their
Purchase Would Be TO the In-
jury of the Road and Also the
Stockholders.

Baltimore, July 10-The arguments
against granting the receivers OF the Baiti-
more and Ohio permissiontois Issue $3.50, 600
worth OF receivers certificates for the
purchase of 10000 tons of steel rails, TO
be used on the main line, east OF the Ohio
River, were concluded this afternoon, and
Immediately after Judge Goff, Of the United
States circuit court, who was sitting with
Judge Morris, of the United States district
court, granted the receivers permission.
Judge Morris dissented, but as Judge Golf
is the ranking Judge, the receivers gain The
victory
The petition was opposed by attorneys
of j. p. Morgan & Co., who are trying to
get control OF the road and conduct the
reorganization.
In his decision Judge Goff said that those
who opposed the petition did so without
denying a single allegation In the peu-
ton, but only objected to paying for she
rails with certificates.
They relied principally upon the evil
dence OF an expert, who considered that
there was no absolute necessity at this
time fol- such a quantity Of rails. The eTi-
denca in the case showed very strong
prepondeiance that the rails Were need
ed. The court SAID that from the actions
of the obiectors it was quite evident that
the contrary could not be shown.
Judge Goff touched on the charge that
the Indebtedness OF the road had been
largely increased, and said that such was
not the case. In regard to the fl st
$1,000 900 of certificates, he said that
| $4,000 600 was used in taking up in
debtedness-a substitution OF one manner
Of debt for another-and not increasing
| the total The issue of certificates for
rolling stock was also done with the as
sent of parties TO this controversy, and
| the manner in which it was done would
not deprive the bondholders OF one dollar
| The Maryland construction certificates did
| not increase the debt, as it was merely
| a substitution.
1t was conceded in the beginning that
| IL was best for the Baltimore and Ohio Rail-
| road that these expenditures be made. So
| there are quite number OF millions OF
| dollars that the court has not authorized
| nor the receivers contracted In excess
| Of the liabilities of the Baltimore and Ohio
since it went into the hands of the Ie-
| ceivers
The court took issue with Mr. FELTON,,
| the expert, and said that while FELTON,
| admits that the road can get along with
| ITO miles this year, that the same pro-
| cess will have to be repeated next year.
| Judge Goff said that it seemed to him that
| the proper and economical administration
| of the road demands that the rail shall lie
| laid at the present time.
He could not see why those who had ao-
| quiesced in the ssuing of former GER
| tificates should object now as the original
idea was to prevent the dis ruption OF
| the system. With reference to the large
| purchases Of modern equipment he said
that surely the court would not have tu-
| thorized the purchase of equipment that
| had been retired on all other great lines
that had had Its day and generation and
passed away; it would have been an act
of folly on the part of the court and IN
| purdonabl on the part OF the receivers 20
| have asked the court to purchase engines
that had been condemned years ago
Therefore the purchase Of large engines
was done to bring the road back to the
position it once occupied and all its friends
hoped would occupy again.
1t would thus be folly to refuse tt
improve the tracks at the present time.
1t would be an action on the part Of tht
court that would show great derellctlor
of duty to all those interestedin this grea'
property, If it would take any action tha
would cripple or destroy It's earning power
and it W as because of this belief that these
rails are essential to the earning power
Of the road, by virtue of which oily Il
can recover from the unfortunate position
In which 1t is found today, that he woult
grant the petition and sign the order
The Baltimore and Ohio receivers taxi
the decision as upholding their policy O
building up the property and increasing
its earning power. The rails are to b
| purchased from the Carnegie Company.