Evening star., 1898-09-19
TRANSFER NOT MADE
Armour, Field and Ream Do Not
Control the B. and O.
STATEMENT OF BALTIMORE BANKER
j. P. Morgan & Co. Still in Con-
troll of Situation.
THE PROBABLE OUTCOME

The Star is in a position to state that the
Baltimore and Ohio Railroad Company has
not passed to the control of Miessrs. Philip
D. Armour, Marshall Field and Norman
Ream of Chicago, notwithstanding the en-
phatc statements to that effect sent out
from Chicago and Cincinnati Saturday, yes
terday and today and published in the pa
pers of the country.
There are many more reasons for believ-
ing that when the Baltimore and Ohio road
gets out of the hands of receivers it VIII
be controlled by J. P Morgan & Co, and
practically, if not nominally, incorporated
i'll a great system of which the Southern
will forl.. part. than that it IS to become
the property of the western men referred
to. These statements are made on the au-
thority of a banker, who, with two or three
other leading men of Baltimore, represents
holdings amounting to about $3n,oo0,ojo par
value IN tie Baltimore ana Olio Company.
In conversation today with 4 Stdr report
er, the banker mentioned said: That
Messrs. Armour, Field and Ream have Sc
cured some sort of an interest in the Bal
timore and Ohio road l nave no doubt, but
that the holdings acquired by them give
them control L 90 not for enc moment be-
lieVc.
There have been rumorS fo- several days
Inat NE SOi- OF Il OSdI " As IN COnlcmpll-
tIon but il has been impossible to get hold
of any OF the facts relative thereto in any
OF the eastern cities, because the whole bus
freSS has been managed in Chicago, and
only those banking hoGSes Immediately IN
terested in that city and New York have
been permitteG to know any thing :.bout the
pending transa ctions. So lar as Baltimore
was concerned. although that city contains
the chief Office OF the Conl0Lly and the
president reslces tEere. Des;ues Which the
citizens are Interested to the extent OF mil
lions of dollars, the most extreme pans were
taken b.T those having ChtTse OF the deal
to prevent any one here from Knowing any
tnlnS about II.
Fact Lost Sight Of.
1T seems singular to me that in the long
accounts telegraphed abro1d from Chicago
| the fact has been lost sight of that J. p.
Morgan & Co. absolutely control certain
| vital portions OF the Baltimore and Ohio
system, and that nothing can be done ~
the transfer of the properly without their
consent. 1t will be recalled that thers was
for a long time a bitter contest between
Mr.. Morgan and the Speyer syndicate rs TO
which should reorganize the Baltimore and
Ohio Company. and to the public it looked
as though Speyer had woI., because his plan
was adopted. 1t has now been developed,
however that Mr. Morgan effectually held
up the adoption of the Speyer plan of re-
| organization until the syndicate agreed to
take from him the consolidated mortgage
bonds, amounting to S29,GD,OVO, at par,
which were taken when issued by the firm
of j. Z. Morgan a Co, and for which the
syndicate agreed to pay Mr. Morgan 110
and accrued interest. Just when this op
ton given the syndicate expires Is not
known but to take W. the mortgage viii
require that the syndicate shall raise S40,
100000. In order to further protect his in
terest in the Baltimore and Ohio, Mr.. Nor
gan insisted, and his demand complied
with, to have representative in what IS
L h.a S,f 4
which corresponds in roads not in the
hands of receivers to a membership il the
board OF directors.
1T is absurd to think that men such as
Armour, Field and Ream would care any
thing about owning what some people are
pleased to term transcontinental line
with a terminus at Baltimore for MIR.
Morgan could, if those gentlemen were an
tagonistic to him, throw serious obstacles
in the way of their trains carrying traffic
beyond that point. 1t is it true that the
B. and o. has line to Philadelphia, but
this IS controlled by Mr.. Morgan as the
owner of its securities, and the only way
by which the B. and o. can get into New
York is by way of the Jersey Central and
Reading roads, both of which are not only
controlled, but owned by ]. P. Morgan.
Used as a Foot Ball.
For some time past the Baltimore and
Ohio has been used by many leading
brokers in Wall street and other cities as a
foot ball, and those who are kicking the
stock about now are doing so with the
| hopes of making money out of it. No one
is verdant enough to believe that either the
Speyer syndicate or Mr.. Morgan is actu-
| ated by philanthropic motives in what they
are doing in reference to Baltimore and
Ohio affairs, and if the reports are to be
believed colossal fortunes will come to
some leading concerns when the Baltimore
| and Ohio is successfully reorganized.
While do not know positively, am in
| clined to believe that Messrs. Armour
| Field and Ream have put considera BILE
| money into the B. and O., first, because
they may have been invited to do so by the
Speyer syndicate, and, second, because
| they believe it will eventually be good in
| vestment. AS for Mr.. James j. Hin the
president of the Great Northern railroad,
| becoming the dominating factor in the So
| called transcontinental system, it is be-
lieVed that he may represent MessrS Ar
mour, Field and Ream to the extent of
| looking after their interests in the B. and
| O., but farther than that, 1T is thought he
| is not likely to go for some time to come.
The receivers of the 3. and o. being
hampered with suits to which the Speyer
syndicate is made a party by various per-
| sons who have large holdings in the Balu-
| more and Ohio company. Principal among
these, as has been stated in The Star
previous occasions, are the state of Mary
| land, the Johns Hopkins University and
others. 1t was bold piece of work when
the representatives of the state and those
| Of the university refused to pay the as
| sessment placed upon their respective hold
| ings by the syndicate, but there is no rea-
| son to doubt that in the near future these
| suits will be settled by the payment to the
Johns Hopkins people the million dollars
worth of stock held by it, and the state
| of Maryland and the others who have sued
| as stated, will be paid for their holdings
also.
Mr.. Covven General Counsel.
sit is perhaps too soon to talk about who
will be president of the B. and o. company
| after it Is reorganized but my impression
| is that 1t will be neither Mr.. J. x. Cowen
| nor Mr.. Arthur P. German. OF course,
very much depends as to whether the road
| is reorganized by the syndicate now in con-
| troll or whether other great financiers shall
perform the work.