Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1898-09-22
Mr.. BACON And THE B. & o.
He Visits Baltimore and Con-
fers With Mr.. CoWen. 2
HIGH PRAISE FOR THE RECEIVERS
Their Policy Has Been Wise
and Intelligent.
II Has Been TO tho Bcnsnt OF Every One
Interested In the Company-Thn Road TO
He Put In the Best Physi.ai Condition.
Anairs Of the Is. g. o. southwestern.

Baltimore, Md. Sept. President
+. II. Bacon OF tho Baltimore .S Ohio
Southwestern railway was 10 Balti-
more yesterday and had conference
with Receiver John X. Cowen Of the
Baltimore & Ohio railroad.
Mr.. Bacon is member Of the com
mittee which has worked out the Balti-
more d Ohio plan of reorganization.
In an interview last night Mr.. Bacon
said that about SO per cent of the
securities, except the first preferred
stock, had accepted the plan OF reor-
ganization and after the legal formali-
ties for the foreclosure of the property
were completed. the final details would
be arranged. C-
In speaking Of the success of the
plan of reorganization Mr. Bacon paid
o tribute to the management of tho
property by Receivers Cowen and MUIR
ray and said: Were it not for the
broad and catholic management of the
receivers there would not have been
such basis for the reorganization of
the company. To their wise and in
telligent policy every one interested in
the Baltimore & Ohio Railroad Co. has
been enabled to secure better arrange
ment than at first seemed likely. In
stead of an expected assessment Of
probably $40 a share the holders of
common stock will pay but $40 share
81 result of the vigorous development
Of the earning possibilities of the COM
pany. The bondholders have been pro-
tected and tho equity of the stock
holders in the property preserved.
Reorganization must be based upon
what can be earned, and il the results
had not been so thoroughly worked
out, plan of reorganization that would
provide for the common stock, and ut
the same time place the property on q
sound financial basis, would have been
an improbability. The new capital
which has gone into the property was
attracted by the good results which
the receivers have secured, and its
representatives will take an active per-
sonal interest in the future manage
ment of the road.
"There will be ample money to put
the property in the very best physical
condition throughout, and it is the
purpose to make it second to none as
far as its physical condition is con
cerned. The work already done will be
followed by additional betterments.
Not only will the main line receive
such treatment, but the subsidiary
lines will also be thoroughly overhauled
and put in shape to handle maximum
amount Of business at the minimum
cost. Among these will be the Central
Ohio, upon which large expenditures
are contemplated. This road has some
stiff grades, which will be cut down
and the alignment of the limo improved.
4 e L. IN. n
tho Baltimore & Ohio Southwestern
will be. taken up in due time and
Worked out. ." AZ part and parcel of the
policy to put the Baltimore, & Ohio
system in condition to do the maxi
will be liberal expenditures on the
Southwestern. When the Baltimore &
Ohio Southwestern Railway Co. was
formed by tho consolidation in 1893 of
the Ohio & Mississippi and the Balti-
more g. Ohio Southwestern railroads,
1t was contemplated in the financial
plan to make such expenditures as
would reduce the grades and secure n
higher rate Of efficiency. This, it was
recognized, would have to be done be-
cause OF the downward tendency of
rates calling for the handling of traffic
ut a reduced cost. Tho work was en-
tered upon, but the embarrassment OF
the Baltimore & Ohio Railroad Co.
arrested the progress Of this plan Of
improvement. The property is not,
however, in bad condition, and does
not require such wholesome expendi
lures as have been reported, but the
work of increasing the traffic handling
ability of the property will be resumed
and this portion of the b. g. O. system
put in the best condition.
: Referring to the business conditions
in the West Mr.. Bacon said that thore
was n uniform feeling in all directions
that the nation was entering upon
what will prove to be one of the mosi
prosperous years in its history. Con,
{ fdence was expressed in all quarters in
the stability of the present situation,
and business men are ready to handle
an enlarged volume of business. Mr..
Bacon added that the West was solitlly
Of the opinion that the United States
should hold the Philippine Islands and
not return them to Spain. Not only is
This country responsible for the main
tenauce of order in these islands, hi
said, but the expanding commerce Of
the country is an all-important roasor
Tow IN, ,,..