New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-09-21
R. AND O. REORGANIZATION.
ANSWER To THE PETITION SEEKING TO
PREVENT IT
JUSTICE AND ExpEpiENCY or TIE PLAN ~
SISTED ON-t TALK WITH JOHN 4 ''NEN'
ONE or THE RECEIVERS

lBY TELEGRAPH TO THE TnIRVNEJ
BALTIMORE Sept 2O-John X Cowen. receV-
or OF the Baltimore and Ohio Railroad '"S
morning stated that the Eastern as well rs the
Western capitalists III the big deal Tor IN"
REORGANIZATION Of the company. and that the pro
ceodnes for foreclosure would be pushed as rap.dly
as possible.
FoIon,ne this announcement. the Mercantile
Trust Company Of New-York and j. Pierpoat Nor
gan and other New-YoTk bankers to-cas h!ed an
answer in the United States Circuit court 10 the
petition Of the safe of Maryland johns Hopkins
University and diners for an injunction 10 prevent
reorganization john G. Johnson, Of Philadelphia
for other parties interested IA the reorganization
comedies ia IN answer
The trusi company and the RcOTganlza non Con-
mittee outline and defend The plan OF rcorgarlzauYh
as the most expedient method Of clearing up the
mudded condition of Baltimore and ono AFFAIRS.
The extent and character OF the courts jurisdiction
in the matter OF reorsaniza are question: o. now
ever and il alleged that tho Court mas no control
whatever over Questions affecting the personal
rights Of bondhclders. particularly in connection
with the consumma ton Of the pan Of reorgAnza-
ton II is allowed. however. that the touft mas
the authority 10 decree sale Of TIE Baltimore and
Ohio Railroad. ana il is admitted that under me
plan and agreement Of reorganization il may be
come necessary to sell the property and franchises
Of the railroad under foreclosures Of the mortgages
II is denied that the plan undertakes "a provide
for the settlement Of the prioriries of the various
interests i'm the property to set any arbitrary
valuation on such interests The assent Of holders
~ 50 per cent Of the bonds secured by mortgages
and also of the holders Of o. per cent Of the pre-
ferrod and common stocks Of the railroad. is SAID
20 have been obtained for the plan Of orSanizato'
which Is declared 10 he Just and equitable II Is
asserted that objection has been made TO the
provisions Of the plan by any holders Of securities
Of the railroad and that the plan was prepared
e he
ton ot the Johns Hopkins University and In ac-
cordance with the ideas Of the Court that the
University and other preferred stockholders were
entitled 10 first charge or lien on the gross
profits property or franchises Of the railroad. ana
that the plan could not have been properly based
upon any other estimate valuation considera-
sion OF the preferred stock. II is further declared
ganization. and gives as additional reason that
the reorga ation managers ara committee are
not parties to he suit and therefore not under
the Jurisdiction 81 the Court
II Is denied that the plan is unduly favorable TO
assertion is made that under the plan $4,000
Is to be obtained 70 pay off receivers certhcateS;
Ssr trust obligations and floating Indebtedness Of
}he railroad. that the annual saving accomplished
s. this liquidation will exceed 500 daily and that
any obstruction of this plan will result in serious
loss 70 the railroad.
Mr. Cowen arrived in Baltimore from Chicago
early this morning. In an interview he said;
''It is true that large interest. very large
interest in the Baltimore and Ohio has been p'..-
as we'll as other Influential interests As 10 those
concerned and the amount Of their purchase. the I
reorganization managers only can answer.
at Is difficult 10 define control. The class of
men who have become interested in tn" property u /
Of a character that would exercise dominating I
influence. With them the stock Of the Baltimore /
and Ohio is in stronger hands than ever before I
in it's history. They strong factors i'm the /
business world and their interest in the road will /
he decided advantage to the property
Anything that will improve the Baltimore and /
Ohio Railroad will by the very nature Of the case /
benefit Baltimore. this city j. its chief terminal. /
The talk of moving the general offices and Mount /
Clare shops from Baltimore l. al moonshine.
The progress Of the reorganization OF the prop
srty will not be affected In the slightest Fore /
closure proceedings and the legal formaties VIII /
he pushed. and these are settled the or /
ga MIA ton of the new company Will he completed.
The new interests went into the property on the J.
has's of the plan Of reorganization They looked .
carefully the field and believing the interest f.
in the road be first cl2sS inVestn purchased
IT, The question as to the personnel Of the new /
directorate will he settled hereafter, and the new
Interests will he largely represented
Their purchase of the stock does moi mean any
railroad combina ton. 1t does not mean trans
continental system fl connection with the Great
Northern What II does mean Is the fullest de-
velonment Ct the Baltimore and Ohio Railroad. The .
road will not he tied any road in the Northwest.
hut will continue deal with all roads and take
business wherever it Is found The nolry Of
hetterment will be carried out and the maximum
traffic aimed after by providing The best facilities
for handling the business