New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-09-18
WV CONTROL OF B. AND O.
.NsAcTIoN CONFIRMED BY PHILIP
D. ARMOUR.
-cr1oN OF PRESIDENT HILL OF THE GREAT
,oprHERN RAILWAY WITH IT-BELIEVED
TO MEAN A NEW TRANsCoNTI-
MENTAL SYSTEM.
fsY TELEGRAPH TO THE TRIBUNE.l

rpy TELEGRAPH TO TRIBUNE.l
..,,ogo Sept 1.-THE report that Philip D.
.~~,orr Marshall Field, Norman B. Ream and
,es J. Hill, president Of the Great Northern
..uuav had purchased the Baltimore and Ohio
'os confirmed to-day by Mr. Armour. When
Ion this afternoon he said:
,r confirm the transaction referred to- The
,,. &c not TO be transcontinental line. but
univ the Baltimore and Ohio Railroad"
The fact that President James j. Hill has
.oor the dominating factor in the reorganiza-
,,on Of the system. however. leaves no doubt In
49, minds Of railroad men that the purpose Of
.no deal Is to secure a trunk line from ocean
80 ocean. under the control Of Chicago capital.
rhs Baltimore and Ohio is hereafter 10 be
chicago enterprise. fed and sustained in trans
S..,,ro,tal affairs by the Immense mileage of
the Great Northern Railway If any road forms
49, connecting link between the terminus Of the
Go, Northern at St. Paul and the terminus
=, tho Baltimore and Ohio In Chicago, IT VIII
Va the Chicago Great Western Railway. but
,,,s Is matter not yet decided upon.
Norman b. Ream who Is the executor OF the
.s,ete OF George NJ. Pullman, will become a
member Of the Executive Committee Of the re-
orsanized road. and either Mr.. Field or Mr..
Armour may become director. although In all
nroba bility the trio will be represented by Mr..
paam President HILL It is said. Will be the
1.-Two factor in the operating department OF
tho new Baltimore and Ohio road. and Western
methods Of railroading Will prevail
While the price paid by the Chicago men Is
not known the details of the transfer of the
nronerties Of the road We're discussed at con-
ference held yesterday in the Auditorium An
mex. At this conference President Hill. MT
Ream. John X. Cowen. president of the Balt-
and
William NJ. Greene. general manager of the
road. were present. They were in conference
until $50 last night. when MIR. Hill started for
c, Paul and the Baltimore and Ohio officials
for the East.
Before starting for the East one or the Baltl-
more and Ohio officials confirmed the report
current in Chicago railway circles. that. in ad-
d,tion 20 the holdings of the road which the
Rockefeller interests are reported to have Sc
cured last week for Western hackers of the
road Messrs Field, Armour Ream and Hill
had secured sufficient reorganization stock 10
make Chicago and the West the dominant ele-
ment In the future management of the road
The alliance of these two great railway prop
critics would mean that Great Northern limited
trains from Seattle could run through to New
York City, while Seattle freight eastward
bound would never touch an unfrlendly ran
from the Pacific to the Atlantic. The mileage
Of the Great Northern Railway is including
connections owned and controlled by President
Hill q little over y. 100 miles. ! ne acquisition
of the Baltimore and Ohio will make President
Hill the active manager of 6-S2O miles of rail-
road Of which Chicago is the centre This is
1900 miles greater than the wabash system,
5000 miles greater than the Michigan Central
system, 1890 miles greater than the Big Four,
1000 miles less than the Pennsylvania system
$500 miles greater than the Northern Pacihc.
$500 miles greater than the Northwestern and
zoo miles less than the Burlington system.
The plan OF reorganization Of the Baltimore
and Ohio road announced last spring was 20
provide for the payment Of the floating debt
OF the system. New securities were Issued OF
$4,000 900 at 81 per cent as prior lien on the
main line Then S630OOOO OF per cent first
mortgage bonds turned out to be a second
mortgage on the railway covered by the prior
lien mortgage. In addition. there was Issued
$4,000 900 Of preferred stock. At this time II
announced that the net earnings for the
year ending June 80 expected to be ST.
10000.
The reason assigned for assuming that the
Chicago Great Western will be the connecting
link that will complete the Atantic-Pacific trunk
line Is the fact that the trains Of the Stickpey
system and those Of President HIS road meet
in the same station In ST. Paul, and the Balu-
more and Ohio trains and those Of the Stickney
system meet I'm the same station in Chicago
This theory is also supported by declaration
OF one of the baltimore and Ohio officials TO the
effect that the connecting link would not be the
Northern Pacific nor the Wisconsin Central.