The evening times. [volume] (Washington, D.C.) 1895-1902, 1897-09-27

New York, Sept. 81 II Railroad King j
1 Plerponf. who already dictates the policies
| OF many great railroad systeus. Is Just
| now making an attempt to get possession
| OF the Baltimore and Ohio Railway.
| If he succeeds, he viii be the dictator OF
| the rsilioad business Of the East and South.
| OF the trunk lines centering here, the Penn
| sylvan;a willthen be the onl one not In his
grasp.
The fight for control of the Baltimore and
| Ohio viii come immediately after October
1, when Mr. Morgan, according To good
4 authority. viii try to seize the property
1 through foreclosure proceedings.
The receivers OF the road will, In behalf
| of tue baltimore interests and certain New
York interests, endeavor To forestall Mr..
Morgan.
The STAKE is a magnificent one, for the
Baltimore and Ohio road, although greatly
| b1rdened by non-supporting branches, may
| be- again made one OF the greatest railway
properties in this country. Its value easily
| reaches up into the hundreds OF millions
The fight for this railway has been going
ON for some time. Long ago Morgan Co.
advanced money to the company and man.
| aged its affairs through Samuel Spencer, of
| the banking house, who became its presi-
| dent. the Garrett and Johns Hopkins Unit
vcrsity interests united 10 GUST Spencer and
then followed the administration that by
reckless methods bankrupted the road and
threw it into the hands OF receivers.
n (. h..r aSt int
ests, i, is necessary for their protection
that the Baltimore and Ohio be broue Mt an
der the control of Mt. Morgan. Under the
receivers the Baltimore and Ohio has been
skirndshng for business without regard TO
ratescr agreements. Thesefree- lance meth
DDS greatly interfere with Mr.. Morgan's
railway trust, Ids trunk line traffic and
passenger pools.
So there is no question that he viii
make a tremendous effort 70 seize this
property.
The opportunity for Mr.. Morgan to seize
the Baltimore and Ohio Will come on oe-
tober L. that time the interest coupons
on ST,744OoO OF bonds of the Chicago
division uhe main line). held by j. p. Nor
gan x Co. viii 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 default. II is asserted In
Wall street that Mr.. Morgan viii lose no
time after October 1 In beginning suit to
take the road.
But the e. Anoier is going to have fight
or his hands before he secures this
property. II IL said in Wall street that
Speycr * Co, who have advanced money
To- the Baltimore and Ohio Company and
the Baltimore interests represented by the
receivers, will oppose Mr.. Morgan tooth
and nail. Their plan, it is said, will be
To default on certain interest payments
due On October TO other parties, and thus
give an opportunity to contest the Morgan
suit for foreclosure.
This gigantic legal battle viii be be-
tween J. p. Morgan & Co. and va rious
capitalists who are friendly to that great
house on one side, and what may be
termed a syndicate, the mcmbers OF
which in part, are Speyer & Co.. and
other prominent New York bankers on
tie other, and ranged with them the
Baltimore interests In the road. IL can
be stated as a foregone conclusion that
the Baltimore and Ohio will be retained
in it, entirety as a system, but at this
time there is every reason 10 believe
that il VIII he ultimately directed by j. p.
Morgan 6 Co.
A suit of the Union Trust Company of New
YORK, trustee of the Baltimore and Ohio 5
per cent of e25 Pittsburg and connells vile
second consolidated mortgage), for fore
closure OF the mortgage, and which was en-.
tered in the United States court in this city
few ays ago in which it is claimed that
the 81 100000 Baltimore aud Ohio SIS Of
1898 arc a lien pari psssu with the S29.-
coo, 900 consolidated 5 per cents of 1928,
is by far the most important controversy
which has up 10 this time arisen between
the creditors f the Baltimore and Ohio Com
pany. and because of the large amount
involved the result viii have a very i'm.
pvr:anr bearing upon the REORGANIZATION
Of the property.
The suit is the result OF the default Of
interest due August l on the bonds issued
under the mortgage The mortgage deed
provides that, in CASE there hall be default
in the Interest payment for ninety days.
The trustee shall foreclose the Inortgag
upon the written request of the holders of
one-fourth Of the bonds outstanding. A
large number oe the bonds issued by the
Baltimore and Ohio, the bill says are i'm
the hands of Speyer & Co., New York
bankers. Since August /, 1897, the bill
also says, the trustee has been directed by
the holders of more than one-quarter in
amount OF the outstanding bonds 10 take
the necessary steps to foreclose the mort
gage
1t is stated on the authority OF banker
WHO is largely interested in B. C o. bonds
and OTTER securities that soon after Re
ceivcrs Cowan aud Murray took Charge of
the property, j. p. Morgan & Co. We're
solicited To take an active interest in the
affairs of the company and to advance the
necessar funds to put the road on a sound
basis, ard that after d cursory exaniina~
ton of the affairs OF the road Mr. Morgan
declined to invest any more money unless
from the conipany's service.
These were John X. Cowen, Long, the
general counsel of the road, now one OF
the receivers; F.. r. Bacon and William
F. Prick, of the board of directors, and
Thomas NJ. King, second vice presi.
dent or those mentioned Mr. Prick,
father IN law OF the late Robert Garrett,
and Mr.. King, dropped out months ago,
and Mr.. Bacon will, it is no longer de.
MED, go on or about November 1. Mr.
Morgan's demand was declined at the time \
1t was made, and Speyer & Co., and some
other New York bankers, were induced
20 taSe Mr.. Mcrgan's place.
NERVE OF A RAILROAD HAND.