Evening star. [volume] (Washington, D.C.) 1854-1972, 1898-11-25
3. AND O. REORGANIZATION
A Slight Hitch in the Syndicate's Nego-
tiations
Belief That the State of Maryland
Cannot Sell Its Stock
Privately.

Something of a hitch has occurred in the
negotiations between the syndicate which
Is recognizing the Baltimore and Ohio
Railroad Company and the board of public
works of Maryland regarding the transfer
of the states interest in the first preferred
stock of the Baltimore and Ohio to the sym
dictate, the board had agreed to do. The
deal was made privately, and it is now
claimed that the board had no right to
dispose of any state property in that man
ner Governor Lowndes has arranged to
take up the matter early next week, and
will go to Baltimore for that purpose.
The state agreed to sell this interest,
which amounts to s11S,0h0, to the reorgani-
cation managers of the Baltimore and Ohio
at s75 per share The trustees of the Johns
Hopkins University and other holders also
accepted these terms through a commit
tee. composed of Gen. John Gill, John A.
Whitridge and James McLane. 1t has since
been discovered that the act of 1896 which
empowered the state to sell certain securi-
ties is very specific in it's mandate that
the sale shall be made to the highest
bidder.
A Temporary Obstacle.
This provision has thrown some doubt on
the legality of a private sale, and, indeed,
1t is asserted that the opinion of the Attor-
ney General will probably hold that the
sale must be made after due advertisement
in the newspapers. The opinion will prob
ably be given in few days. If this be so,
it will throw temporary obstacle in the
way of the completion of the reorgan!Za-
ton of the Baltimore and Ohio. and If any
one were so disposed attempt could be
made to bid over the reorganization man
ayers, secure the stock and fight the suit
of the preferred stockholders in the STU
preme Court of the United States, where 1t
is set for argument OIL January o. 1899. As
it is. this case will probably be dismissed.
1t is denied by d gentleman who has been
in communication with the reorganization
managers that they have paid over $Io per
share for first preferred stock as has been
reported He states that the impression
that 81: was paid for certain holdings was
due to the fact that assessment of 81
had been paid on these shares. and, accord
ingly, when the reorganization managers
bought the stock for SO they repaid the 81,
thus making the ST..
Railroad Company in particular and the
public in general are much interested in the
position of general manager of the road,
which has been vacated by the promotion
of Mr.. William VI Greene. Who will his
successor be? That is the question they
want answered.
Many persons think that the new factors
in the northwest-that is. Messrs. j. j. Hill.
Marshall Field. n. B. Ream and Philip D.
Armour-will name a western man. Mr..
Hills son has been named in this cOnnec-
H. /
general superintendent east of the Ohio
river. and Mr.. ]. Van Smith of the Staten
Island division have also been mentioned.
New Men to BE Active.
That the new men affiliated with the Bal
timore and Ohio. who have linked their for
tunes with it, intend to take a prominent
part in the management of its affairs is
shown by report from New York that
Mr.. William Solomon. a member of the
banking house of Speyer & Co.. who were
Instrumental in recognizing the Baltimore
and Ohio would, after the reorganization
takes effect, become the chairman of the
board of directors of the company. In this
capacity he would direct the financial man
aeement of the Baltimore and Ohio. 1t Is
s.; led that he would continue to reside in
New York. where his presence or the pres
cnce of some official prominent in the finan-
cial management of the Baltimore and Ohio
is almost INDISPENSABLE, on account of the
inpor' ance of New York as financial CEN
ter. Mr.. Solomon is one of the five trustees
named in the plan of reorganization to vote
the stock of the new company at stock
holders meetings. Mr. Cowen will. how
ever, be reelected president and will CO.
operate with Mr.. Solomon in managing the
financial affairs.
The Baltimore and Ohio, which was rep
resented at the Joint Traffic Assoeia TONS
last meeting by Mr.. John X. Cowen. will
maintain 1tS COnnecUOn' with local assoc Ia
tons of a similar type operating in the east
and central west. The conditions which
caused the dissolution of the Joint Traffic
Association. while they will affect associa.
tons of a minor character. will not, as a
matter of fact, force their characterization
On the contrary, the presidents Of the east.
ern lines have agreed that the Central
Freight and Central PASSENGER associations
should be maintained, subject to the pro.
viso that every article in the present agree
raents of the two associations clashing with
the Supreme Courts decision in the john
Traffic Association case shall be omitted
from the new agreements. Both associa-
tinns will retain their present offices and
adapt themselves to their new condition az
speedily as possible. The purposes of the
Central Passenger Association, reorgan.
iZed, are set forth as follows in the new
agreement:
authentic information in relation to the
tariffs and rate sheets of the respective
parties and charges therein and the due
filing and publication thereof; TO aid in Sc
curing compliance with the federal and
state laws regulating Interstate CONNER c.
and to enable the parties here to mutually
confer, advise and act in relation to the
subjects above stated and the proper
methods to secure the purpose aforesaid.
The most important section of the agree
ment dealing with the question of rate
making provides that each line shall file
with the commissioner of the associa ton
notice in writing of such change at least
three days before the new rate becomes
effective. Each road is to fix and deter
mine its own rates, and to file with the
commissioner all rate sheets for the gen.
eral information of the members of the as
soclation. The commissioner will act for
ca n line under its instructions in seeing
that rates. rules and regulations are prop
efly published, and will cooperate with the
compllers of individual rate sheets, and
law. "'' '-'e
COMMODORE MAYO SEEKS DIVORCE.