Evening star., 1898-10-18
PLEA FOR PARTICIPATION
Petition by Holders of Akron and Chicago
Junction Railway Stock.
Proceedings in the Suit of Maryland
Against ID. and o. Compnny-
Hearing Friday.

A hearing is to be given Friday, in Balti-
more. before Judges Morris and Goff of the
United States district court to determine
whether Cornelius ]. Ryan, l. c. Clee-
mann, John Pitcairn and Alexander Tor
rance of New York shall be allowed to be
come parties in the petition filed July -, by
the state of Maryland, the Johns Hopkins
University and others against the Balti
more and Ohio Railroad Company.
Those named above claim that acting as
a committee in behalf of others similarly
situated, they have rights and interests in
the controversy. 1t is alleged in the petit
ton that the Akron and Chicago junction
Railway Company, which is owned by the
Baltimore and Ohio railroad company
prior to October l. 1880, had a capital stock
of 81 5000 the entire amount of which
except sufficient shares to qualify direc-
tors, have been for several years and now
is, owned by the Baltimore and Ohio. The
company has Also issued and negotiated
S60o,0oU of preferred stock, which by its
terms bears > per cent dividends. guaran
teed and accumulated. The petitioners rep
resent nearly all of this stock.
The petition further states that under
lease for 500 years the Baltimore and
Ohio cOvenanted to operate the road and
agreed 20 pay as a yearly rental the sum
of 81 for every loaded freight car trans
ported over the road to the number of
5o.mU any year, and 81 in excess of this
number.
1T was also agreed that no mortgage
should ever be placed on the road which
should have precedence over the existing
issue of S600,C00 of preferred stock. When
the Baltimore and Ohio went into the
hands of receivers February 70, 1895, the
receivers continued to operate the branch
and have since then paid all the accruing
interest on the bonds except coupons for
s3I 300, which matured May /. 1858.
uFefRrrgd stock Of
the Akron company held by them the petit
tioners are absolutely entitled to guaran-
teed accumulated dividends of : per cent.
and practically the entire amount of past
due rental owing by the Baltimore and
Ohio is owed to the Akron company, and.
If collected, would be received in special
trust for payment of their claims accruing
from 1891 to this date. In resisting the re-
organization scheme and in the payment of
the interest due upon the main stem bonds
OF the Baltimore and Ohio and preventing
the maturity of any of the main stem bonds
or the foreclosure Of the mortgages the
petitioners claim to have an interest and
therefore the desire to become parties"
Inquiry by Staten Island COMPANY.
1t is believed in some quarters that some
of the minority stockholders of the Staten
lslaad Rapid Transit Company Will at an
early day ask the courts to ascertain why
the interest due October on its bonds was
not paid. The Staten Island railway is a
leased line of the Staten Island Rapid Tran
sit Company, which latter is a part of the
Baltimore and Ohio. In other words il
forms the New York terminus Of the Balti-
more and OHIO, the latter guaranteeing the
interest on its bonds and owning majori-
ty OF its capital stock. The Staten Island
railway Is only thirteen miles long and is
Donded tor Sl5Op,OUO, par value OF shares
so The transit company pays for the
tease SS2o9o per annum, which in turn pays
VI per share in stock interest on bonds
and organization expenses. The last quo
tation on these bonds is 1U3 bid, none orfer-
ing. 1t was the Staten Island Rapid Tran
SIT Company, not the Staten Island railway
that defaulted october L on its bonds; in
other words, the Baltimore and Ohio COM
pahy defaulted. 1t is stated that the Staten
Island Rapid Transit Company is earning
abont three times its interest, and in bank
ing circles the refusal of the Baltimore and
ONO TO pay the october interest is regarded
as an unJustitiable proceeding