The evening times., 1898-09-21
TWISTED RAILROAD NEWS
Misleading Stories of the Re-
cent Big Deal Corrected.
PLAIN FACTS SET FORTH
DestiRfes Of the Road Not TO De TN
der Absolute Control of Amy Chi
cage Syndieate-status of the Hal
timore and Ohio Southwestern in
1Ie New Arrangement.

much misinformatiOn was placed in so
small space about the management of
railroads and their combinations has
been-eempassed in two two-column sto-
ries OF two issues of a local Washington
paper of yesterday and the day before.
The first article said that ]. Pierpont
Morgan was in actual control of the Bal
timore and Ohio road and would be the
directing genius Of that corporation not
understanding the alleged purchase of
majority of the stock by Chicago syn
dicate. Mr.. Morgan, as is We'll known,
has for some years been considerable of
a factor in the financial management of
the Baltimore and Ohio Road. Mr.. Cow
en-, one of the receivers of the road has
stated that a Chicago syndicate has pur-
chased a very large share of the stock
He emphasized this by stating that the
amount of stock purchased by the Chi
cago people was exceedingly large. Ii
seems to be a well-understood fact al
the present time that the Chicago syndi-
cate now own a controlling interest in
the Baltimore and Ohio stock, and when
the time arrives, that the syndicate viii
be master of the situation. OF course
Mr. Morgan has an interest in the prop
take proper precaution to protect it
president Hill, of the Great Northern.
has already stated that he will have a
voice in the management of the Balu-
more and Ohio property. This should put
at rest all speculation on the point that
the Western syndicate is not TO control
the desuinies OF the road
zone of the most glaring errors in the
articles referred to was the statement
,h rRas. llalf fF,a,Y md (lhfn road
ed the city Of Cincinnati over the tracks
of the Chesapeake and Ohio. This is
about as far removed from the truth
could well be The Chesapeake and Ohio
enters the city of Cincinnati from
bridge across the Ohio River from the
Kentucky shore. The Baltimore and
Ohio Southwestern, as ii is known west
of Parkersburg. has for years been the
sole owner of its tracks into Cincinnati
The road between Parkersburg and
Cincinnati was formerly known as the
Marietta and Cincinnati In 1882 it was
reorganized and given the name OF the
Cincinnati, Washington and Baltimore
The western branch Of the Baltimore and
Ohio Southwestern extending from Gin
cinnati 10 ST Louis was formerly the
Ohio and Mississippi. This line like the
old Marietta and Cincinnati has always
owned its own tracks into the Ohio me
trspolis"
In the opinion Of a great many people
IL Is a question as TO what is to become
of The Baltimore and Ohio Southwestern
in the new deal but there is no doubt but
that provisions have been made for the
ownership Of this property as well as III =
main stem OF the road which extends
from Philadelphia TO Chicago.
1t has been said that Mr.. ingalls,, presi-
ient Of the Chesapeake and Ohio and the
Big Four systems has had his eye on the
Baltimore and Ohio Southwestern. eN-
tending from Cincinnati 10 ST Louis. He
would Iik+-+e get control of il and weave
a. into his general system. Ii he could
do This he could practically destroy all
coYnpetitipn between Cincinnati and the
Mound City. His Big Four system al
ready extends between these two cities,
ana De alse -llas line running into Louis
VILE as does the Baltimore and Ohio
Southwestern.
The latter line has never been regarded
as valuable railroad property except that
it ,has contributed very largely To the
revenue of the main line from Parkers-
burg 10 Philadelphia. II has been a sp.en-
did feeder for the mother road, but its
stock has not paid dividend in many
years When it was known as the Ohio
and Mississippi it had not paid a divi-
dend more than once or twice since it
was Dltll. anu IL WIS eilNDl4S NA4N AIS
roads constructed in that section of the
country. II was built in the early SOS
1t has been dominated by the Baltimore
and Ohio since before the death of the
elder Garrett. The CARROTS got posses
sion of most of the stock along about
1875 Previous TO that time it had been
operated mostly a western extension
to the Erie system. but passed out Of the
influence Of that line when Jay Gould and
Jim Fisk ir., lost control of the Erie.
1t was originally constructed as a broad
gauge road and was reduced TO standard
gauge in 1873 or 1874.
Gen. George b. Mcclellan was at one
time president of il. This was before the
breaking out of the civil war. In the lat
ter GUS and early EOS the Eanderbilts
had a large interest in the property and
a son-iu-law of Commodore Vanderbilt,
William Torrens, an Engllshman, was
fits president
In 1S1 law Gould attempted to get pos
sessfoY-,,f it There was a lively contest
between Robert Garrett and George }.
Gould at a meeting held in Cincinnati
This was George Gould's first appearance
above the surface as an associate OF his
father. Young Gould and young Garrett
commanded their respective forces at the
Cincinnati meeting.
II was a fight as to who should take
possession Of the property, and who
should be its receiver following the resis-
tion of John King, Jr., who had hlieu the
positiOn for two or three years, ana hau
resigned.
Jay Gould's candidate for the receiver
shin was John r. Mclean, editor and
proprietor of the Cincinnati Enquirer
now a resident of this city. The Garrett
faction had no particular choice for re-
ceiyer, but anything to beat Mclean.
The Garrett faction won, and John Nj
Douglass, who for years was president OF
the Illinois Central, was made receiver oi
the system. Previous to that meeting
Mr.. Mclean and Robert Garrett had beer
very intimate friends. The action taken
by the CARROTS at that time seems tC
have resulted in an estrangement be-
tween the two men. The property was
for wears used for kind Of a football
and every year there was game OF
catch-as-catch-can as to who should con
trol it. When the Baltimore and Ohio got
absolute possession of the property and
changed its name to the Baltimore and
Ohio Southwestern, all contention over
its ownership then disappeared The Bal
tinore and Ohio has been the controlling
the spirit for almost five years as abso-
lutte owners, and the indications are thai
under the new organization it will con.
tinue as a part of the Baltimore and Ohio
system.