Evening star., 1897-03-05
Half a Million to Be Lost by the Bal
timore and Ohio Company.
DISASTER TO INNOCENT PERSONS
No Benefit to Any One to Garry
Coal at a Loss.
EX Pc RT ACCOUNTANT S

The Baltimore and Ohio Railroad Conn
pany will be the loser to the extent of at
least $500.000, according to the statement
of a usually well-informed banker, as the
result of the coal rate war. which has been
in progress for some time past, between
the Erie. Beech Creek, Pennsylvania, Bal
timore and Ohio Norfolk and Western and
Chesapeake and Ohio railroad companies.
A banker, who is largely interested in
Baltimore and Ohio securities said yester-
day to a Star reporter: THE tide water
coal tonnage is divided among the Balti-
more and Ohio. Erie. Pennsylvania. Beech
Greek. Chesapeake and Ohio. and Norfolk
and Western companies. These roads all
compete for this tonnage. The rates
mutually agreed upon for 1897 Were Sis
to tide water, but young as the year IS,
rates have been cut to 81 per ton. Several
meetings have been held to adjust rates.
but so far no agreement has been arrived
at. In the meantime prices for coal have
been slaughtered, and a fierce war is in
progress. with every indication that The
situation will grow worse. The d emorali-
zation began with the placing of he New
York, New Haven and Hartford railroad
contract. This road consumes about 1.gJO.-
900 tons of coal per annum. and is the
largest single buyer in the New England
states. The prices at which this contract
was taken were exceedingly low, and cam
not be beneficial to either the coal operators
or the railroads.
Ruin and Disaster Threatened.
'The coal business was i'm a very de-
plorable state previous to the conditions
that have been brought about by the fail
ure of the coal-carrying roads to agree
upon rates. and an equitable distribution
of tonnage to tide water. but it is now in
much more serious position. threatening
ruin and disaster to thousands of the peo-
pie OF this country. It is no benefit what
ever to the coal operators to have the rail-
roads haul their product at unremun-
erative price, and 81 per ton TO tide water
is certainly too low to admit OF any profit
to the railroads.
ITO a novice IL appears remarkable that
six men who are at the heal of The coal
carrying roads mentioned so far forget
the trust reposed in them that the interests
Of their stockholders and the public are
ruthlessly sacrificed! What good can come
OF gratifying personal feelings by such
enormous sacrifices? Additional equipment,
improvement to the property, and. last,
but not least. dividends, cannot be earned
when the tonnage handled is at a loss.
The result is that no interest whatever is
subserved, and ruin and receiverships Pile
up
1T is time that the railroads indulging
In these pleasantries should come 10 a halt.
The officials of these roads are Well aware
that the methods. such as they are push
|
agement of a private business firm. Good
common sense would forbid any such de-
structive measures. In this Instance II is
most exasperating to know that the roads
the only sufferers, but likewise are thous-
ands of innocent people, who have no direct
interest in their sQuabbles.
The Expert Accountants.
Messrs. Patterson and Corwin. the ex-
pert accountants of New York, who have
been selected by the Baltimore and Ohio
Railroad Company reorganization commit
tee of Baltimore to undertake the exami-
nation of the accounts and affairs of the
Baltimore and Ohio Company upon the
lines as laid down by the committee in
it's address to the holders of b. and ..
bends and shares. are making as rapid
progress with the work as could be ex-
pected, and will, II Is thought. be able
to make a complete report to the commit
tee In about six weeks.
These accountants have for some time
been at work making an examination of
the annual reports Of the Baltimore and
Ohio Company from 1883 to 1885, inclu-
stye. and preparing a compilation and re
view OF the reports OF Expert Accountant
Buckley, made in 1888, and Mr.. Little re-
Gently completed.
A member Of the Baltimore and Ohio
reorganization committee told Star re-
porter that the committee is closely watch
ing the course OF events and Is prepared
to take active steps looking to the pro-
lection OF the holders of Baltimore and
Ohio securities and to the reorganization
of the B. and o. Company whenever such
action shall appear desirable.
The same banker said In reference to
some other matters in which the B. and
o. Company h closely Identified, Some
rather interesting Developments may ma
terialize during the hearing Of the suit cf
the Baltimore and Ohio first preferred
stockholders against the receivers of the
Baltimore and Ohio Company, which is
set for tomorrow. before the supreme
court OF Baltimore city. The history OF the
deal between the state Of Maryland, the
Johns Hopkins University and the syndi-
cate which engineered the purchase Of the
Baltimore and Ohio common stock and
sale Of first preferred Is said to be rather
Interesting"
The central OAao,s Suit.
Speaking OF the pending suit Of the
stockholders Of the Central Ohio Company
against the B. and o. for the recovery of
back rental alleged to be due, he said: II
cannot realize how the Central Ohio stock