New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-09-20
B. AND O. IN COURT.
FORECLOSURE SUIT BROUGHT IN
FEDERAL COURT.
REORGANIZATION MANAGERS PREPARING 7" GO
AHEAD WITH THEIR PLANS DESPITE
TIE WESTERN DEAL.
fry TELEGRAPH TO THE TRIRrNr.l

fry TELEGRAPH TO THE TRIRiNr
Baltimore Sept l9-The reorganization managers
! Of the Baltimore and Ohio Railroad mace ah I'M
nortant move to-day. I'm view Of the announcements
/ that Armour. Hill and other Western capi'ai's'S
have secured control OF the property Suit was
brought I'm the United States Court Tor 'ne lore-
closure OF the $2s 100000 consolidated mortgage on
the road held by the Mercantile Trust ana Deposit
Company OF this city. The mortgage WAS exc
cuted on December 10. 1857, and covers the emu.
system OF the Baltimore and ONO. al JANUS ''"'
tenernents on the line OF the railroad except those
occupied in this city general Offices, All the
rolling-stock tools and implements, the first mort
gage bonds Of the Wheeling. Plttsburg ana ba'ti-
more Railroad Company. and rentals, tolls ana
profits to be derived. The proceedings have beeh
FASTENED because Of the Western deal. and the ac-
ton taken IS an indication that the reorganization
managers are preparing to go ahead with their
plans whether all the stockholders consent or not
Members OF the Baltimore committee say that IT Is
not the intention TO forecose. except as last re-
sort. as IT would compel the surrender OF the ola
charter, with it's State tax exemption. ms. cap-
talized at per cent is worth 100000, and natural
~ every effort will be made reorganize without
foreclosure. r. the mean while foreclosure VIII be
proceeded with so that the Reorganization Com
mittees will be prepared TO take either horn OF the
dilemma. The mortgage was made TO secure equai-
ly the payment II the principal and interest on the
Consolida ted mortgage bonds, amounting III the
aggregate
ings are brought because Of failure 10 pay interest
on the bonds which dates only TO the beginning
Of last month. There due $1,000. Suit for
payment of this amount entered Saturday by
some OF the shareholders, the Johns Hopkins Uni
vcrsity being among them. Their suit also asked
for a mandatory injunction 10 restrain foreclosure
proceedings being brought. 1t is asserted, however,
by the bill for foreclosure fled to-day. that the
holders OF 20 per cent Of the consolidated mortgage
bonds authorize the foreclosure proceedings
No action was taken by the Court to-day. II Is
asserted In the bill filed that the default on the
mortgages amounts to }5sOSo, and that the de-
fault constitutes a breach of covenant The Mer-
camille Trust and Union Trust companies. of New
York are named as defendants because they claim
a lien the property.
The statement made to-day by persons close
to the Baltimore and Ohios present management
that IT is still the programme TO eject Receiver
Cowen president and Receiver Murray vice -pres-
the railroad In condition for carrying heavy vo-
ume OF business at minimum cost Much mas
been done, but there is stlll vast deal Of work
for which Jney is provided under the rcOrgauiza-
ton. The employees Of the Baltmor" ana ONO IN
Baltimore. including the heads ~ departments ana
their subordinates, much concerned over the
Western deal. they fear that by transfer or
the control Of the road from Baltimore 20 Chicago
they Will lose their places While it Is accepted
that there will be extensive changes in the opcrai
Ing traffic and accounting departments. u IL not
bc. !eve1 that there VIII be n wholesale slaughter
OF employees hut that many OF them Will retain
their places though they might have 10 remove 10
Chicago