New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-09-18

II Is currently reported that the trip or MI
Bacon to London is for the purpose OF confer
ring with the English interests in the proposed
reorganization Of this trunk line. The fact that
none OF the officials would deny the story about
the recent conference in Chicago with HILL
Ream. Armour Field and others has given Gre
dence in railway circles here to the r. port that
something important was done at the chicago
conference but there IS every II clcatloh mere
tina; the conferences to-day and tonight were
only with a view 20 completing the estimates
for the proposed improvements OF the Baltimore
and Ohio Southwestern system.
The receivers Of the main lire and Mr.. Bacon
and Mr. Peabody. Of the Southwestern system,
had experts with than going over figures for
changing grades and increasing the capacity
and facilities Of that system from ParkersDurS
the Ohio River, to Cincinnati, Louisville St
Louis end other points. ii seems certain that
the Southwestern system is to receive great inn
provomcnts under the plans Of the reorganza-
ton and that the old owners and officials are
prominently Identified with the new organiza-
ton that has secured the property.
M Bacon was reluctant 10 discuss the mat
ter to-day. but afte, being advised that 1t
had been published In Chicago New-York
and this city, he sad number of rep
resentative men identified with large rail-
way. manufacturing and commercial in
terests in the Northwest. Chicago, New-fork
and other cities on the cOmpany's line had been
for some time negotiating for the purchase Of
a substantial interest In the Baltimore and Ohio
road and that such negotiations had been
brought to a successful conclusion: that UNI
der the reorganization ample means has been
provided for cutting down grades increas-
ing the capacity and facilities Of the road. and
putting IL IL a condition promptly end eco
nomically to handle largely increased business:
that the reorganization managers had also de-
cided that the subsidiary lines. Including the
Baltimore and Ohio Southwestern. should be
treated likewise, and arrangements were now
being concluded TO readjust the affairs Of such
lines and secure capital to put them in the same
condition the main line.
Mr. Bacon was reticent but II is evident that
the control has been purchased. and from what
has been learned here and through other sources
IL is certain that much larger sum than SlO.-
100000 has been paid for II, and that the re-
organization managers and himself are the par
ties who have made the negotiations.
ACTUAL CONTROL NOT EASY TO SECURE
REORGANIZATION PLAN PROVIDES FOR VOTING
TRUST FOR FIVE YEARS.
Baltimore. Sept. II (speciaD.-Th- report from
Chicago that Western capitalists had secured
controlling interest in the Baltimore and Ohio
Railroad caused a stir in financial circles here,
and started hundreds Of inquiries from holders
OF the common and preferred stock Of the cor
poration Major Alexander Shaw. chairman OF
the Baltimore reorganization committee OF the
road declared that he did not believe Messrs.
Armour. Hill and the others mentioned in the
deal had secured control OF the system. They
may have acquired some blocks OF the stock.
but he thought that when the matter was fully
the system did not go with that stock. Every
other member of the Baltimore committee. In
Guiding several persons largely interested in
the road expressed the same opinion
other Baltimore fnanciers said that even ~
Mr.. Hill and his associates acquired majority
Of the stock. they could not secure control ot
the property in less than five years. The plan u
reorganization. which has been accepted by a
o-f,, 81 efg nj b1n "a
which has been declared operative by the Reor-
ganization Committee. provides for voting
trust 10 continue for five years. In which sha
he vested the preferred and common stock 81 the
new company The men selected as trustees are
william Solomon. Abraham Won. J. Kennedy
Tod Louis Fitzgerald and Charles Costcr.
The plan provides In the event ~ the death or
failure or refusa! 10 serve of ar' person desIg-
mated "a a voting trustee, prior 10 IN" 'l''.,l'
~ tho voting trust. the vacancy shall Do hllcd
by the REORGANIZATION managers. tn" STOCK
shall be held hy the voting trustees ana th'Ir
SUCCESSORS. Jointly mnder trus, agreement
prescribing their powers and duties. ana the
method ~ filing vacancies FOR hNe years, AZ
though the voting trustees may IN their us
erection. as provided ia the trust agreement, "e-
liver the stock AT an earlier date
In the United States Court here to-day the
State Of Maryland. the Johns Hopkins univer,
siiy and Hospital the Eutaw Savings Bank ana
Individual shareholders ~ the states suOscllp-
ton OF S3.OOOu0O 10 the Baltimore and ono
Railroad filed a supplementary p"Nnon Tor
mandatory Injunction against the receivers ana
trustees Of the compauy's mortgages II ~
claimed that FOR the year ended June 30 the
cxcc,s Of earnings over operating expenses has
been sufficient 10 pay the Interest due on debts
secured by mortgages ~ Baltimore and ONO
property but that the receivers have FOR the
first time since their appointment failed 10
make the payments.
II Is also contended that this subjects the Bal
tinore and Ohio 10 the risk Of foreclosure and
sale at the suit n the mortgage creditors who
have liens on the property. The Injunction
against the receivers Is to have the interest
raid: that against the trustees ~ the mort
cages IS 10 prevent any proceedings for n fore
closure and sale under the mortgages by rca-
son Of the default In interest until the case
comes 10 trial II is also asked that II the
amount on hand Is not sufficient 10 pay the in
terest tho receivers be directed TO borrow enough
IN anticipation Of future earnings TO help pay
the interest
J. u. ROCKEFELLER AND CHiITAIQUi.