Evening star., 1898-09-21
MONEY TO BUY MORGAN'S INTEREST
Hill the Representative of the New
York Banker.
o T II E r G o S S I P


est in the road, which, as heretofore stated
in The Star, amounts to about s400o0 900.
If this proves to be true there is no doub:
that Mr.. Morgan will retire as soon as The
necessary formalities complied with,
and the road will continue, so far as the
management is concerned, as at present
for probably the next five years.
That the investment of even so large q
sum as $40, 900, 600 by persons able to carry
it and to await their dividends for an in
definite period is a good one there is no
doubt, for by the investment they get ac-
tual control of a property worth almost
S25O, ,00000O. The advent of Mr. Rockefeller
into the syndicate, if he has really become
member of it, will emphasize the reports
that Mr.. Hill will be the real director OF
Baltimore and Ohio affairs.
Mr.. Morgan's influence.
Some friends of the new syndicate are
making statements to the effect that by the
western capitalists coming into the 3aIti-
more and Ohio they will be able to negati-e
entirely the influence of Mr.. Morgan iii The
road but such stories may be set down AS
absurd because Mr.. Morgan, as the owner
of the consolidate mortgage bonds, the de-
fault of interest on which has led to the
request by Mr.. Morgan for the Ipnaint
ment of other receivers instead Of Messrs.
Cowen and Murray, is in a position where
lie can ueifldllC, ana IL Is Sdlu mas UeIlldHu-
ed that either he be paid for his bonds at 10
per cent premium and accrued Interest,
amounting in all to about N0pn,u0o or the
Baltimore and Ohio be reorganizei in ac-
cordance with his plans.
Suits of various kinds instituted either
for the purpose of selling the road by fore
closure or for injunctionS to prevent fore
closure. or for the recovery of interest long
past due, follow each other iii such rapid
succession that it is next TO impossible to
keep the run of proceedings or 10 tell what
the condition of the Baltimore and Ohio
really is The suggestion has been made in
some quarters, in view of the fact
that foreclosure proceedings have been
taken by the trustees of the consolidated
mortgage of the Baltimore and Ohio COM
pany and q decree for its sale asked for,
and the filing of a petition by the first
preferred stockholders asking for an in
junction to prevent foreclosure, that now
seems an opportune time for the managers
of the Baltimore and Ohio reorganization
plan and the first preferred stockholders
committee to get together and effect COM
promise.
Comment on COwen's Interview.
Much stress is laid in some quarters on
an interview which was given out yester-
day by Mr.. John X. Cowen, enc of the re-
ceivers of the Baltimore and Ohio, in which
he admitted that Messrs. Armour, Ream
and Field. and he added others, had Sc
cured a dominating influence in the af-
fairs of the Baltimore and Ohio 1t was
stated last evening by a Baltimore and
Ohio official to Star reporter that the
amount invested by the western CAPITALISTS
was $16.So0,0o0, but that it was expressly
understood that the investors would have
no voice in the management of the road
In other quarters this statement was char
acteriZed as ridiculous, and those who ex-
pressed themselves that way said they
We're convinced that the Speyer syndicate,
which it is now conceded sold this large
nf tiaCf IN
SO because they We're unable to longer re-
tain all the holdings in the Baltimore and
Ohio which they have been keeping for al
most two years, besides which they have
expended several millions to meet increased
interest on stock of the company held by
others, and some men wko have been
connected with the Baltimore and
Ohio company for many years ventured to
assert that MIR. Morgan had got his oppo-
nents, the Speyer people, into a hole from
which they would be unable to extricate
themselves without serious financial loss
They further believed, they said that the
day was not far distant when Mr. Morgan
would step in and become the actual owner
of the Baltimore and Ohio road.
Hill Morsan's Representative.
The fact seems to be lost sight. of by a
large number of well-informed people that
it was but short time since when the
Pullman Palace Car Company divided its
surplus, amounting to ST 500 900, among
its stockholders. Among the heaviest Of
these stockholders were the gentlemen
whose names are now so frequently mem
toned in connection with the Baltimore and
Ohio, while in addition Mr. Ream repre-
sentS the Pullman estate and that II was
under the belief that the Baltimore and
Ohio can be brought up to become good
dividend payer that they put such large
sum or money in its securities. 1t is
worthy of remark that nearly all of the
western capitalists referred to are CON-
nected with railroads that pay big inter-
est on the amount invested in them and
that Mr. Armour is particularly interested
in the Chicago, Milwaukee and St Paul
to which the Great Northern, of which
Mr j. J. Hill is president, is a great feeder
Inc universal discussion of baltimore
ana Ohto affairs has brought out the fact
that while Mr.. Hill has admittedly accom-.
plished wonders In building up the Great
Northern read, he is the personal renrs
sentative in the road of Mr.. j. p Morgan.
and 1t Is believed to be the fact that the
interest apparently about to be takon hv
Mr.. Hill III Baltimore ard Ohio affairs is
because it is Mr.. Morgans wish thai he
should do SO.
While. as stated above, a Baltimore and
Ohio official declared to 4 Star Reporter
that the western men would have no voice
or vote In the management of the coin
pany, the following statement was given
cut by member of the Speyer syndicate
who said:
A Speycr Syndicate Statement
''It is we'll known that the Baltimore and
Ohio is not yielding the, return which IL
should. and 1t was this fact together with
the conviction entertained by Mr.. Hill that
the net returns would be materially in
creased. which led to his investment Dur
chase Whatever action follows will he
taken in cooperation with the other large
interests. such as those of Morgan in New
York, Frick in Pittsburg, Speyer & Co.
Kuhn, Loeb & Co.. and the REORGANIZATION
trustees. 1t may be put down as a
fact that the control of the Baltimore
and Ohio has not passed into new hands
1t is Low where 1t was. and where it will
be for the next five years at least"
The statement was made by another
prominent party that while the absolute
control cf the Baltimore ana Ohio would
require holding of nearer $4,000 600
than $16.S00.OG0 the amount said TO have
been invested by the Chicago syndicate.
the latter figure will LnIuestionably give a