The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-11-16
& o. LOPS OFF $2O,OOO,OOO.
STOrIrToUs ASSETS WIPED OUT BIZ
TEE RETALIATION COMMITTEE.


s.our,ty Holders Nsw Gan Get = Clear Tdea OF
the Actual Conditien OF the Property-A
Heavy Assessment Psssible-The Annual
stateunent-The OLE directors Rs-eiected.
BALTIMORE, Nd, Nov. ia surprise was
IN store for the stockholders Of the Baltimore
and Ohio Railroad Company to-day when, atsthe
annual meeting, the report Of tho President and
directors conveyed the information that 1t had
been decided to wipe out what 10 known as the
book surplus. A special OF the
board had been appointed for tho purpose OF
examining the assets OF the company and re-
valuing the rolling stock, stocks. bonds, and
certain other assets. II decidsd to reduce tho
value of these and Of the advances for con-
utruction TO the various subordinate lines and
certain other assets Of the company. Tho total
omount TO the credit Of profit and loss thus
wiped Quits about $50, 100000. The securities
Of other companies owned by the Baltimore
and Ohio were cut down about $4,000, 900, and
the other items about S14,000.OO0.
Men familiar with the true financial condition
Of the Baltimore and Ohio have always insisted
that q fictitious valuation has been placed
upon tho rolling stock ana certain of the seouri.
ties carried as assets. It was the policy Of the
old management to place o vdiue upon all roll.
ing stock, no matter how worthless Il was.
Cars and engines that have boon condemned
continued to be carried as profit and loss at
their original value, and by this means a sur
plus was a yured out, where an actual deficit
existed. Stocks and bonds were carried at
their feoo value, regardless Of their market value.
The old management would never admit this as
O fact, and perBistently. ignored tho criticism
heapcd upon It by fnanciers and the real own
ors Of tho property. There are many who
escribe the company's present embarrassed con.
0ition to this fact.
fh> r>c,,ritv holdorn nnvv for kh~ Arck ktc,>
sinco the death of tho late President, John W.
Garrett, have o clear idea Of the actual condi.
ton Of the property. except, Of course, as to
the payment Of dividends. Tho policy of tho
DID management in this respect may mover be
explained satisfactorily. 1t is generally be-
heved that few of the dividends paid for q few
gears prior to 1895 were earned.
After tho issue Of tho statement to-day there
was considerable talk in regard to tho amount
Of the assessment to be levied upon stock
holders when the time comes for rehabilitating
the property. II is the desire of both commit
tees to make the assessment as light as posi-
blo. though there are many who predict that
% will DO heavy, possibly as much as $50 a
share. 1t 10 believed that the bondholders will
also DO called upon to make concessions in the
:Sslss. of tho '0n''n'inE to have their bonds
The gross earnings for the year ending June
$Io.7i compSred with the previous year so and
92.7e4.e4o.6 more Than in 1895. The freight
s g min sT were ea $fhs !: sSl;sn ih.s an ~ 1 ere OF
improvements and large increase In equip
mont. and to q general and intelligent effort to
revenue was $50 5s, ooI.S 90. a decrease Of $a5s,.
e41.47. but $9,9o4.65 more than was earned
In 1895. The miscellaneous earnings increased
Z e,749.15, Of which the elevators contributed
1857. ss' against nst sis7. $50 sSs59%Hs s;;in S 1855. IN
$685. an increase of $2,42s,673.46. This Is
accounted for by the large sunni required in
maintenance Of way and equipment. The aggre:
crease of 81 ,ss6, s6S. 8 {. This amount was
% which tho expenditures appert,ined. The
trust fund derived from the sale of terminal
n m : bonds odr;. the ;mer Of which is restricted
Gienwood terminal and the shops, roundhouse,
we're Rebuilt. AS reeeiVed t htm iSi0% REPAIRS,
Sios o onn 5ans Sc ssP %srs ST. The psss sessl ea ans IL SEQ sss;
was 6S.5o4.46s. Tho total number of passen.
88eTs carried was s'344.o7s. a decrease of
The meeting today was called to order by
who has presided at every meeting Of the stock.
holders OF the Baltimore and Ohio in the last
{sw years. was elected Chairman. and G. W;
s TsSlt voted S sas iSS. 7sd GS oSt n Of a 1ota q o. fa soc.c6 q
shares; The old Board Of Directors was re-
Z. Mctane. George C. Jenkins Alex Shaw.
liam H. EBlackford, Louis Fitzgerald. Eugene
and Rowland Davis.
Edward R. Bacon and William A, Reid were
the Bsidmoreans who attended the nesting
we're Manrice Gregg. George Jenkins, Thorn
Charles sSn iisStiN8iiti us s0e George w; a x. %an | IinEen. H .nd \.
Irvine Keyser.