Evening star., 1898-09-28
Reorganization Committee Of B. and
0. Company Issue a Call.
THE FINAL INSFALLMENT ON STOCK
State Treasurer Shryock to Stand
by Johns Hopkins.
S UITS TO ORECLOS Sc

and Oh1o railroad, have issued call for
the payment of the final installment,
amounting to 80 cents per share of first
preferred stock deposited and S5 per share
of second preferred stock and common stock
deposited with the management. They fur
ther announce that failure to pay such in
stallment on or before October 10 next will
subject the stock already deposited and any
cash paid thereon to forfeiture to the syn
dicate, as provided in the reorganization
agreement.
If this arrangement is carried out it will,
it is believed, work a confiscation of the in
terest of the state of Maryland in the B.
and O.'s first preferred stock which
amounts to $11S,10 and also of the Johns
Hopkins University holdings which amount
to about one million, neither having paid
any assessment demanded.
There is. however, reason to believe that
the reorganization managers will shortly
meet with decided setback in their plans
An order has been issued from the United
States circuit court, Baltimore, directing
them to show cause Wednesday next why
the reorganization of the road should not
be delayed until after the decision of the
United States Supreme Court IN a suit filed
some months ago regarding the status of
the Johns Hopkins University holdings of
first preferred stock.
State Treasurer SiryocI.'s Views.
An interesting development has come to
the surface through an interview had with
Gen. Thomas ]. Shryock treasurer of the
state of Maryland, who said:
Representatives of the Johns Hopkins
University some weeks ago requested me
to pool the states B. and o. first preferred
stock with them l told them that 7 had
no authority to do so. but that my judg-
ment was that the state officials should
stand by the Johns Hopkins University in
whatever position they took in the case 1
then telegraphed to Governor Lowndes
giving MIN my opinion as expressed to the
Hopkins trustees The governor in reply
to my telegram said that he agreed with
my views about the matter. I then had a
conference with the Johns Hopkins Uni
veTslty representatives, at which l gave
them my word (athOugh | was not author
lied to pool the state stock or to let it go
out of my hands, that l. as a member of
the board of public works would stand
with them in whatever action they took to
protect the interest of the university in the
+. and o. matter, and | intend to stick
right there
There has been no formal meeting of
the board Of public works at which the
matter has been discussed. However am
Saf1Sted that the other members Gf the
board agree with me. 1t is a fact that I
nave been asked several times recently If
l would consider an offer for the state
holdings of Baltimore and Ohio stock To
all such queries my uniform answer has
been that ! would not
II feel that inasmuch as the state of
MaryIand sold large portion of its hold
HSS of Baltimore and Ohio first preferred
to the Johns Hopkins University and at
the last session Of the Legislature appro-
prldted large sum OF money for the in
sttuuon thereby showing the interest of
the people in the university. the only proper
thing for the states officers to do is to
stand by the institution now. As one mem
Der Of the board of public works, 1 have
gwen its officials my word to do so. and 1
DO not think there is any power on earth
to make me- violate this promise Should a
bona fide bid of - be offered me TODAY for
the stock. 7 would OF accept 1t in the face
OF this verbal agreement with the Hopkins
representatives If the Hopkins people
should decide to sell their holdings at Is
the board OF public works would then con-
slider the proposition.''
Removal of Executive Offices.
There is much discussion in Baltimore
concerning the rumor that the execu-
tive offices of the Baltimore and Ohio road
are to be removed to Chicago. as the re-
suit of the recent deal by which Messrs.
Armour and others secured a large interest
in the company. On this point q very
prominent Baltimore banker said to a Star
reporter:
Explanations by Receiver Cowen would
seem to indicate that while the western
holdings might dominate the policy Of the
reorganization of the Baltimore and Ohio
company. New York would still hold a
large. If not a controlling, interest. It can
not be hoped that the Baltimore and Ohio
company. no matter who controls it. will
make Baltimore its chief terminus
when. under the management of the
late John w Garrett. 1t was decided to
build the Philadelphia extension, Baltimore
ceased to be the chief objective point of
the company. 1t is to be expected that any
management of the company will seek to
carry its traffic over the entire system
and. besides. the Baltimore and Ohio has
very large interest in terminals at New
York. which 1t is to the advantage of the
company to protect and support.
"At present the Baltimore and Ohio COM
rGry has a traffic contract with the Read
ing and Jersey Central. and there is a
mutuaity of interest between these roads
which should make the continuance of
present arrangements advantageous to all
interests. The Baltimore and Ohio can
reach New York only by this route, and
the Jersey Central and Reading can reach
Washington only over the Baltimore and
Ohio.
THE future of the Baltimore and Ohio
company seems to be very promising. The
road, under the management of Mr.. Cowen
and his associates, has been immensely
improved. The business methods inaugu-
rated and adopted have wrought a great
change in the earning capacity of the prop
erty, and the reorganization of the com
pany AZ reduction in fixed charges will
place the Baltimore and Ohio once more
in a solvent and commanding position"
Foreclosure of Mortgages.
Suits TO foreclOse the Baltimore and Ohio
railroad mortgages of 1872 and 1874 We're
instituted a day or two since in the United
States circuit court in Baltimore. These
mortgages are prior lien on the railroad
to that of the consolidated mortgage of
1887 to foreclose which suit was insti-
tuted last week. All three suits are in
furtherance of the plan of reorganization,
and are based on the default in interest
payments. Each Of the mortgages on
which suits were last brought is to secure
the issue OF about $4,000, 900 in bonds at 6
per cent interest. The semi-aEnual inter
est of $500. .40D in each case, due March 1,
1898, and May l. 1898. respectively, was
not paid. The suits were brought by the
trustees of the mortgage of 1872, and the
surviving trustees under the mortgage of
1874. after obtaining leave of the court.
They allege the default in the interest,
and that the Baltimore and Ohio is insol-
vent ard ask that the property be sold to
satisfy the mortgagers.
Receives Slight Injuries.
Mrs. NJ. Dudrow, living at No. $50 North