Evening star., 1898-11-14
Relief Prayed For.

The only relief prayed for by the original
petition. filed July 29, was that the reor-
gan!Iati0n committee. managers, creditors
and stockholders, who have accepted the
reorganization plan, should be restrained
from carrying it out until the petitioners
had an opportunity of procuring from the
nitCd States Supreme Court A decision
determining what was their interest in the
company Tie amendments relate to 9th
er matters not relevant, it is claimed, to
the main issue.
The defendant says that. on information
and belief, the net earnings of the system
nave increased. because the receivers have
obtained. by the issuance of certificates
large amount of money. which has been
used in imTi ewing the property, and, as ap-
pears from the answer of the receivers,
about S1p,GmCtM will be re e1uired for the
same purpose during the next year with
out this additional capital the defendant
says. 1t does not believe that the net earn
ings would have increased.
II Is claimed by the defendant company
that In" additional money necessary for
the uses of the road and the desired reduc-
tion of interest and rentals can only be
brought about by some plan of renrganiza-
tiOu acceptable to the holders of the secl!ri-
ties. and that the plan of reorganization
Sled by the petitioners in this proceeding
has been aSSt rted 70 by Tearly q II the hold
ers Of the bends and stock of the road A
foreclosure. says the petition. ca II be avert
ed only by the consent of all the creditors
and stockholders 10 some acceptable plan.
BANKERS Statement.
Referring to Baltimore and Ohio matters,
q leading Baltimore banker said today:
1T was announced not very long ago
that interests controlling the second mort
gage bonds of the Pittsburg and Western
Railroad Company had sold their bonds to
interests connected with Buffalo, Rochester
Ak ri nd WeS fer N
at a price materially higher than that of
fered by The people managing the reorgan-
iZation of the Baltimore and Ohio. Not a
great deal has transpired regarding this
purchase. but il is reported with a GER
tain amount of plausibiity that the pur-
chase is in the interest of the new trunk
line which is supposed to be in course of
formation by the Lake Erie and Western
in conjunction with the Rochester and
Pittsburg. 1t is further assumed that the
Baltimore and Ohio thus loses control of
the Pittsburg and Western system. which
forms its connection with the Akron and
Chicago Junction and the old Valley rail-
way Of Ohio, controlling the entrance to
cleveland
If this were SO. it would seem to be a
rather serious thing for the Baltimore and
Ohio. of course, it would not be too late
to regain control of the Pittsburg and
Western If it Were necessary, because pay
meut Of par and interest for the second
mortgage bonds would leave the property
in the hands of the Baltimore and Ohio
through its control of Pittsburg and West
srn stock. Nevertheless. it is hardly con-
ccivable that the reorganization managers
would have allowed d competing interest
to purchase these bonds at 10 per cent if
they had not thoroughly considered the
situation. Still. it is not easy to see why
the road was allowed to get away.
The Pittsbu"g and Western does not
actually enter Pittsburg, but it controls
very valuable terminal properties in Allie
gheny City which are connected with the
baltimore and Ohio and the Pittsburg juno
ton roads. these terminals comprise al
most the entire wafer front of Allegheny
City. They entirely control Baltimore and
Ohio's outlet north and west from Pitts
burg. and. in fact control its nearest outlet
to the lakes. II th@ Pittsburg and West
ern were in the hands of parties antago-
nistic to the taltiInCre and Ohio the lat
Ter company would be unable 10 do any
Cleveland lax business through Pitts
burg. except by very roundabout route.
Its Akron and Chicago Junction road
would he practically worthless, for 1t
would have no eastern outlet.
Purchase of Bonds
Now. while it is true that the Lake
Erie ana Western people, acting through
Buffalo, Rochester and Pittsburg people,
have purchased the Pittsburg and West
ern second mortgage bonds some peoplo
that the Baltimore and Ohio is to be
severed from the Pittsburg and Western 1
understand that at least two concerns
closely identified with the Baltimore and
Ohio reorganization are Interested II the
syndicate which has made the purchase of
PittSburg and Western bonds. One of these
concerns is u trust company whose presi-
dent is extremely prominent in the Balti-
more and Ohio reorganization committee.
ard the other is a banking house, the most
active member of which is also on the COM
mittee. Many think it hardly likely that
these people would permit their left hand
to act in q, manner antagOnistlc 20 their
right hand.
1T is entirely conceivable. although not
probable, that an understanding exists be-
tween the final purchasers of the Pittsburg
and Western seconds and the Baltimore
and Ohio people by which the interest of
the Baltimore and Ohio will be given all
the facilities that ii needs for doing busi-
ness north and west through Pittsburg On
the other hand. one must not lose sight
of the possibility that the 'Brice inter
ests' may have stolen march on the Bal
tirnure and Ohio, and by the purchase of
the Pittsburg and Western seconds have
completed the most troublesome link in the
new tl1ink-line scheme. Certainly for a
line situated as the proposed new trunk
line is situated. to secure entrance into
PittsbUrg on any such terms would be a
great stroke.
If this is the case. there IL nothing for
the Baltimore and Ohio people to do but to
relinquiSh the road or pay par and inter-
est for the second mortgage bonds Time
will show the true status of the whole bust
ness l can hardly believe that the Bal
timore and Ohio people have been over
reached in the matter, or that they intend
10 let the property go. To outsiders. the Bal
timore and Ohio. without the Pittsburg
and Western, would seem to he badly crip-