Evening star. [volume] (Washington, D.C.) 1854-1972, 1898-07-01
Plan of Reorganization and Its Effect
Upon Stockholders.
SALE OF MISS GARRETT'S INTEREST
Action of the Holders Of First Pre-
feued Stock.
JOHNS HOPKINS HOLDINGS

Enough time has elapsed since tne pio-
mitigation in New York of the plan OF re-
organization of the Baltimore and Ohio
railroad by the Speyer syndicate TO learn
some OF the effects and to foreshadow
with reasonable correctness others which
are likely to follow in the near future.
1t is announced that Miss Mary Garrett.
who has so long been identified with the
fortunes of the B. and o. company. has
deemed IL advisable for her to sell her hold
ings of 90 900 shares. It is said Miss Car
rett received 100000 for her stock. and
that it was purchased by New York par
tiss.
With the closing out of her interests in
the Z. and o. she separates from an insti-
tuition in which she was long a most infiu-
entail factor. and whose policy, in the most
successful period OF its recent history, she
was. 1t is believed. largely instrumental in
Shaping. She was for years the confidential
secretary OF her father. the late John w.
CARAT, president of the Baltimore and
Ohio Railroad Company, and accompanied
him in all his journeyings. not only TO va
rious parts of the United States. but to Eu-
rope to the moneyed centers, where Presi-
dent Garrett often went to negotiats loans
for his company. She has been since her
fathers death one of the most trusted ad-
visers of the executive officers of the b.
and o. company.
Johns Hopkins Holdings.
What disposition will be made of the
Johns Hopkins University holdings in the
b. and o. no one seems to be able to fore
tell Amounting as they do to nearly one
million of dollars, par value, the payment
of the assessment is very serious matter
for the trustees OF the big institution, while
If the assessment is not paid, the possibility
is that their interests will either be wiped
out altogether when the reorganization of
the company becomes a reality. or else
they will be counted for but little in the
future management of the corporation.
There has been a disposition in some
quarters to encourage the belief that the
adoption of the plan of reorganization of
the y. and o. by the syndicate is victory
for the banking concerns represented
chiefly by Speyer & Co. of New York as
against those OF which the house OF J. Pier
pont Morgan is the head. but analysis
of the status of affairs will show that Mr..
Morgan will be fully represented in the
new management
With a recognition to the extent accorded
by the syndicate of Mr.. Morgan's interests
in the bonds of the b. and o. company, 1t
is likely that the danger from the threaten
ed dismemberment OF the Il. and o. will
pass away, and the suits for receivers of
the Chicago division and Pittsburg division
will not be pressed in both of which Mr..
Morgan. it is understood, controls the ma
tority of the most important issues of
bonds. all of which were for large amounts.
Statement of IL Banker.
In reference to this matter a banker, who
IS in part representative of Baltimore and
Ohio interests amounting TO many millions,
said TO Star reporter:
LAS the Baltimore and Ohio Railroad
Company's guarantees and Endorsements
viii be released through the foreclosure of
the Baltimore and Ohio road, all of the
bonds so guaranteed must hereafter de-
pend upon the intrinsic value OF the prop
erty represented, and the settlement Will
probably he made upon basis of the earn
ing capacity of the several properties,
which is the only fair method to be adopt
cd This. of course. does not mean that
the holders of bonds not recognized in the
settlement are obliged to accept any terms
offered. Quite the contrary. If the proper
ties are self-supporting, or even If they
are Indispensable to the Baltimore AMI
Ohio Company. although not entirely self
supporting. the owner can insist upon
equitable terms
pels the taking of sacrifices all around.
hut il Is believed by those best informed
in The matter that the concessions granted
and the provisions made for the future will
place the property on its feet. a leading
banker said he had no doubt that the
proposed plan will be successfully carried
out and that the Baltimore and Ohio COM
pdny as reorganized will regain it's former
credit asd taxi its place among the leading
roads OF the country
Appeal to Courts Probable.
The holders of the first preferred stock of
the company held a meeting In Baltimore
Tuesday and decided that they would
neither accept nor reject The Speyer plan
for the reorganization of the company 1t
was the consensus of opinion that. should
TIE reorganization committee determine to
Gerry out its plans. despite the protest of
the preferred holders, an appeal will be
made to the courts for restraining order.
a committee, composed of Messrs. John
A. Whitridge, James l.. McLane and John
GIL. jr-. was appointed TO carry out reso-
buttons to the effect that:
1t is the sense of this meeting of the
holders of the 100000 of stock in the Bal
timore and Ohio railroad. issued under the
act of 1885. chapter 200 that before the
decision by the Supreme Court of the
United States of the questions which have
been certified to II by the United States
circuit court of appeals for the fourth cir
cult in the pending suit of the Johns Hop
kins University, on its own behalf and on
behalf of the other holders of the said
stock of the Baltimore and Ohio railroad
none of the holders of that security can
Justly or lawfully be asked or required to
determine whether or not they will accept
the proposition which has been published
by the gentlemen who are acting as q re-
organization committee in New York:
Want Hearing Advanced.
That every effort should be made to
have the hearing of that case advanced.
and to that end the cooperation of the
gentlemen referred to be respectfully in
vited;
And that they be requested, If they shall
fix time limit for such assent, to put the
same at such date as will come after such
decision of the Supreme Court of the United
States. In order that it may not be neces-
sary for the holders of the stock above
mentioned TO apply to the courts to re-
strain the carrying forward of such reor-
ganization till the rights OF the holders of
the 100000 of stock issued under the act
of 1>}I. chapter 395. shall have been ascer-
tanned;
And that the committee heretofore ap-
pointed by the holders OF such 5000. 600 of
stock, issued under the act of 1895 chapter
SJo, to represent their interests communi-
cate the action of this meeting to the gem
tlemen who are acting as a REORGANIZATION
committee in New York"
Interest Payments
The receivers OF the Baltimore and Ohio
Company began today TO pay tntsr-
est as follows: Car trust certificates. s10o
ooo, and float certificates 500; on purchase
OF city of Baltimore's interest in the Pitts
burg and Connellsville railroad $1,000.
Pittsburg and Connellsyille railroad certih
Gates, sl6.250: certain Pittshurg and Con-