El Paso daily herald. (El Paso, Tex.) 1881-1901, 1898-09-28
The Big Railroad Deal Discussed

Buffalo Express.
A Baltimore dispatch, Sept. 10. says
suit was brought today in the United
States circuit court for the foreclosure
OF the consolidated mortgage on the
Baltimore d Ohio railroad, held by the
Mercantile Trust and Deposit compa-
ny. The mortgage WAS executed on
December 10, 1Ss1, and covered the
en- ire line of railroad of the Baltimore
4 OHIO. all lands aud tenements on the
line OF the railroad, except those occu-
ped In this city as general offices, all
the rolling stock, tools, and imple-
ments, the first mortgage bonds OF the
Wheeling, Pittsburg & Baltimore rail-
road company and rentals, tolls, and
profits to be derived.
The purpose of the foreclosure pro-
deedipgs Is to put the reorganization
managers in position to go ahead with
their plans whether all the stockhold-
ers consent or not.
The relief prayed in the bill is as
follows:
That the mortgage of December 10,
1887, be foreclosed: that the amount
due for principal and interest on the
consolidated mortgage bonds outstand
ing end secured by the mortgage be
ascertsined and determined: that in
default OF the payment of the sum so
found due, within 4 time to be limited
by the decree of the court, the defen-
dants and all persons claiming under
them any interest in the mortgaged
property are absolutely and forever
barred and foreclosed of all right of
redemption in the mortgaged premises;
that q sale of the whole of the Balti-
more & Ohio property be ordered and
that the proceeds be applied to litiga-
ton expenses and to the payment of the
amount due on the bonds: that il the
proceeds OF the sale are insufficient to
pay the amount due, the Baltimore IL
Ohio be adjudged liable for the pay
ment; that receivers be appointed to
take possession of the mortgaged prop
erty to carry on its business until the
sale is consummated; that by injunc-
ton the disposal of property be re-
strained.
The new Baltimore & Ohio deal is
not expected by railroad men to work
any great difference in the transporta-
ton situation, either of the east or of
the west. 1t has been discussed every
where since Saturday by the ablest of
and traffic men of the coun- /!
try, and the consensus of opinion seems !
to that no great effect upon the gen.
eral situation will be apparent because |
Of the change of ownership.
st Cannot be expected that thereswill |
be a decided change in the routing of |
frs light, because Messrs. Armour and |
Field, two of the greatest receivers /
and shippers of freight in this cOun-
try, are behind the eastern line," the /
traffic manager of one of the biggest
systems in' the United States
IS quoted as saying. These gentle
men, for business reasons, will make
10 attempt to divert the bulk of their
business to the Baltimore & Ohio for
- kat 4
make enemies of the competitors of
hat road. Their business requires
hem to rse practically all of the lines
VI the United States, and il is to their
interest to stand we'll with all. This
lone would prompt them to do nothing
o arouse antagOnism. Any attempt
N their part to divert freight to any
ne road would arouse much luminosity.
farshall Field is auirectOr in the Rock
STAND railroad, but he does not at
empt to divert freight to that"
Even though the Chicagonians have :
ccepted o majority of the Baltimore ,
Ohio stock, the understanding in :
baltimore is that they cannot secure {
ontrol of the property in less than I
We years. The plan of reorganization
Ihich has been accepted by a large
isjority of the stock no ders and bond
olders, and which has been declared
perdtiVe Dy Tue reorganization COM
littee provides for voting trust, to
oDtinue for FIVE years, in which shall 1
e vested the preferred and common E
.ock of the new company. The men I
elected as trustees are Messrs. Will '
am Solomon, Abram Wolff, j. Ken I
edy Tod, Louis Fitzgerald and Charles
oster. d
The Baltimore & Ohio railroad may
lter Toledo. I
N. 8. Ream, one of the recent pur /
lsser5 of the road, owns the entire I
reet-car system of Toledo, and his @
gents in that city have been figuring {
II some time with the Glover Leaf l.
,ad, which is in the markes. What p
3 wanted with the Glover Leaf is now S
oparent, as the purchase of the Bal 6
more Ohio means a connection with
oledo and Michigan points if the i