The sun. [volume] (New York [N.Y.]) 1833-1916, 1898-03-03
BAND o. REORGANIZATION
BIZ TO GIVE POWERS TO CERTAIN
MEN TO BRING IT ABOUT

70 re Anueuuced that II IL siupiy . Ere
caatsapprS Measure In Case snch n step
ghsuidhnHeces-ary Before the Legislature
Rreets acknowledgements to ne Gained.
ANNAPOLIS. Nd. March 2.-Delegate John 8.
Writ introduced into the House Of Delegates to-
day a bill to provide for the complete reorgani-
xation OF the Baltimore and Ohio Railroad Com
pany. The incorporators named in the bill arc
Messrs. Louis Fitzgerald. Henry Bulge, Eugene
Deleno. and K. X. Bacon OF Now York; George
II. Earl. Jr.. Of Philadelphia; Alexander Brown,
John Gill. Edwin warfeld. James Bond, ]. Nc
Kenny white, and Thomas J. Hayward Of Bal
timore, Tho bill does not set forth In detail q
scheme Of reorganization. but simply gives
power to the parties named to reorganize the
road, should such q thing become necessary be-
fore the Legislature meets again in 1900. 1t 10
intended to anticipate the efforts OF others. 1t
is asserted that the incorporators represent all
interests and arc not under the control Of any
clique. -.
With the measure was given out the following
statement on the part of the proposed ~incorpor-
ators:
THE bill providing for the reorganization Of
the Baltimore and Ohio Railroad has not been
introduced because It 10 at all certain that the
property must DO sold under foreclosure and re-
organized, but because the friends Of tho road
have considered 1t wise to properly anticipate
any contingency. When the road went into tho
hands of receivers its friends believed that 1t
could be rehabilitated without q foreclosure and
sale. and the f1no business done by the road
lately tends 10 show that this hope will be full
filled. When the present session Of the Legisla-
ture adjourns, however, 1t will not meet again
for two years, and tho bill introduced by Mr..
the friends Of the Baltimore and Ohio Railroad
Company In the position of being able to protect
city Of Baltimore. as well as the railroad com.
pany itself, IL a foreclosure is necessary before
the Legislature meets In 1900.
THE bill should be passed for tho following
reason: Under the general railroad law Of Mary
land a corporation can only be organized to pur.
under ono mortgage at one sale. It would
therefore DO Impossible to organize q corpora.
reorEanize the whole Baltimore and Ohio Rail.
road system, because that system Is composed
by many different mortgages. II is universally
conceded that 1t would greatly ip1ure the value
Of the State OF Maryland and the city Of Balti-
moro demand that the great trunk line which
one of the greatest grain exporting ports of the
country should DO maintained as q whole and
rival and competing cities.
The bill must also be passed II Baltimore is
20 fem ma hs sse nGme q tbs sh roa Sai1 Eda bo, nnd ~ p1 no.
bill is not passed and q reorganization of tho
railroad becomes necessary before the next ses-
sion of the Legislature. the friends of the road,
in order to prevent its Acknowledgement, must
apply to some other State for the necessary
charter to enable the purchasers to take tho
railroad as a whole. This would probably neces-
state the establishment Of the homo office Of
the new company outside of Baltimore in some
other State.
1.-THE gentlemen named In the bill represent
all interests and have not been. selected for tho
purpose Of furthering the interests Of any spe.
clal party or clique. The bill merely puts these
gentlemen or their successors In the position of
being able to properly reorganize tho Baltimore
and Ohio Railroad Company il such a step 10
found to he necessary. 1t merely vests them
with powers which the general railroad cor.
poration law does not at present contain. Neces-
sarily. the new railroad would be subject to all
the burdens OF taxation now borne by the other
railroad companies in this State. The introduc-
tion OF the bill does not mean that the Balti-
more and Ohio must be sold under foreclosure.
but merely a wise desire on the part of its
friends to be prepared for any emergency."
1t is minated that the bill was written or
prepared under the direction of Receiver John
X. Cowen of the baltimore and Ohio. and is In
the interest of the New York reorganization
committee. Mr.. Cowen is out Of the city, and
the incorporators refuse absolutely to discuss
the bill. Mr.. Cowen will not return until Fri
day or Saturday. Hugh L. Bond, In the presence
of ex.Judge X. J. D. Cross. both counsel for the
receivers of the Baltimore and Ohio. explained
the purport OF the bill. Mr.. Bond said that tho
bill Is not intended to carry out any scheme of
reorganization already formulated.