Evening star., 1898-07-30
MEETS WITH OBSTRUCTION
Plans of B. and 0. Reorganization Committee
Temporarily Stayed.
Judge Morris Grants Order Requiring
Syndicate to Show Cause why In
junction Shall Not Issue.


Baltimore and Ohio Railroad Company has
encountered an unlocked for obstruction.
! which will, 1t is expected, cause a material
modification of the committees plan as an
| nounced, or else result in lengthy and ex-
pensive litigation.
Yesterday, upon application of counsel
| for the first preferred stockholders, Judge
Morris of the United States court at Baltf-
more signed order requiring the syndi-
cate to show cause on or before September
20 why an Injunction should not be issued
restraining the carrying into effect of the
plan of reorganization.
Position of State of Maryland.
The state of Maryland, which for more
than half century was of inestinable
| benefit in securing the prosperity enjoyed
for SO many years by the railroad company.
has, through it's board of public works, de-
termined that the terms offered by the
New York syndicate are not such as ought
to he accepted by the people of Maryland
and has iniorsed the action of the trustees
of the Johns Hopkins University, who, as
holders of 81 100000 of preferred stock of
the Baltimore and Ohio company, expressed
the opinion that none of the holders of the
SO 600 coo of the stock of the Baltimore and
Ohio railroad justly or lawfully be
asked or required to determine whether
they will accept the proposition which has
been published by the gentlemen who are
acting as a reorganization committee in
New York before the case in the Supreme
Court is decided
Action of Johns Hopkins.
The trustees also decided that every effort
should be made to have the hearing of
that case advanced. and to that end the
cooperation of all interests be invited
Also, that they be requested, If they
shall fix time limit for such assent. to
put the same at such date will come af-
ter such decision of the Supreme Court of
the United States, in order that 1t may not
be necessary for the holders of the stock
above mentioned to apply to the courts TO
restrain the carrying forward of such re-
organzatio till the rights of the holders
of the 100000 of stock, issued under the
act of 1885, chapter 395, shall have been
ascertained.
THAT the committee heretofore appoint
ed by the holders of SO, 100000 of stock to
represent their interests communicate the
action of this meeting to the gentlemen
who are acting as reorganization COM
mittee in New York
First Preferred Stock.
After taking the action above noted the
board of public works, acting in conjunction
with the representatives of the holders of
q, 600 of the 10000 shares of first preferred
stock of the company, decided to apply To
the courts for a restraining order to pre-
vent the reorganization of the Baltimore
and Ohio company without admitting the
first preferred stock. The object of this
suit is to compel the reorganization commit
tee to consider the first preferred stock
Still another object will be to prevent the
reorganization until after the decision OF
the United States court in the pending case
to determine the status of this stock unless
the stock in question is admitted. This de-
csion is expected in October.
At meeting of those interested a day or
two ago it was claimed by some of those
present that the committee representing
the first preferred holders had written -
the reorganization committee asking the
committee to be allowed not to participate
in the reorganization until after the de-
cision by the Supreme Court. To this let
ter no reply, it was said, had been received.
If an answer had been received and if IT
mad been favorable no legal proceedings
would be necessary The first preferred
could then abide their time. II the decision
of the court placed the stock in the category
of a lien upon the property, then the stock
would be rated at par. If the decision
should be in favor of the Baltimore and
Ohio receivers, who have rated the first
preferred as ordinary stock and not, there
fore, a lien, then the first preferred holders
could accept the offer of the reorganization
committee. which amounts to about forty
cents on the dollar. in the opinion of one
of the committeeman as given at the meet
ing.
The terms offered by the REORGANIZATION
committee provide for an assessment of 81
per share of first preferred stock, the hold
CTS 10 receive III exchange Tor each snare
DO per cent in new preferred stock and IS
per cent in new common stock.
The assessments on the holdings of the
Johns Hopkins University trustees amount
to $4,000, and 1T would be question with
them as to how they should raise this sum
1t is evident that the trustees could use
none of the $4,000 appropriated to the uni
versity by the state legislature at its last
session, as the money was given for spe-
cific purpose foreign to that of paying an
assessment on stock. The trustees might
be forced either to sell portion of the pre-
ferred or its common stock TO secure a suffi-
clent sum TO meet the assessment.
University's Future.
The Importance and seriousness of the ac-
ton Of the Johns Hopkins University trus-
tees are appreciated when it is explained
that upon the result of the decision of the
court may rest to a great extent the future
of the university. Should the decision be
in favor of the university, then, of course
everything will be bright. Should the de-
cision be unfavorable and should the re-
straining order to be applied for fail to pro-
tect the holders, then all of the preferred
stock which has not been included in the re-
organization agreement will be wiped out of
existence, according to the claims of the
friends of the reorganization committee
since after the foreclosure and sale of the
Baltimore and Ohio stock all stock of the
old company, which will no longer exist,
will be wiped out.
This, however is combated, and 1T is as
sumed that should the suit go against the
preferred stock it can come in on the terms
offered even after reorganization is effected
Many of the trustees of the Johns Hopkins
University fully appreciate the responsible
ity resting upon them.
Agreement Probable.
1t is the opinion of many financiers that
an agreement acceptable to the first pre-
ferred holders will be reached and all litiga-
ton, including that now pending before the
United States Supreme Court, will be aban-
doned.
In the application for a restraining order
it was argued that the first preferred hold
ers are not free agents, since they are not
at liberty to take any action with their
stock pending the suit before the United
States Supreme Court. BY such litigation
as is proposed it is urged that the holders
of the stock in dispute would be in a posi-
ton to go into the reorganized company
after the status of their stock shall have
been determined by the court.
Marine Hand at White House.
The program of the United States Marine
Band concert at the White House grounds
this afternoon, beginning at $40 o'clock.
will be as follows:
l. March, 1.-The Virginian'' (first time).