The evening times., 1898-09-22
TRIBUTARY RAILROADS.
b. & o. Reorganizers VIII Overhaul
Subsidiary Lines.

Baltimore, Sept. 22.-The statement
made in an interview by. Mr.. E. r. Ba-
con, one of the members OF the reorgan-
iZation committee of the Baltimore and
Ohio Railroad, that the subsidiary lines
of the system are to be thoroughly over
hauled and put in shape for more eco
nomical operation, has attracted consid-
cradle attention.
1t is the purpose In dealing with the
holders of the securities of these leased
lines to consider each case separately.
An element of weakness in the history of
the Baltimore and Ohio was the load it
had to carry In protecting some Of its
Endorsements of subsidiary lines and IN
fulfilling obligations of contracts with
leased lines. 1t will be the general policy
in pursuing the reorganization process in
this direction to put each property upon
such financial basis that it will, under
reasonable arrangements with the parent
company, the Baltimore and Ohio Rail-
road Company, be able to sustain itself
One of the important effects OF the
foreclosure of the Baltimore and Ohio
will be to get rid of Improbable and
costly alliances, which were burden
and helped to bring on disaster. Alli-
anceS OF the future WILL therefore, be
made prudently. and the taking hold OF
properties on terms that would make
them sources of weakness Is TO be avoid
ed. 1t is the purpose of the reorganiza-
ton managers after hearing from
large proportion of each class of securi-
ties of the leased lines to take up the
matter of adjusting the future relations
- tn,ft hn Pult limo
and Ohio. This special duty has been
delegated TO the advisory committee of
the reorganization, and the members of
this committee are Edward r. Bacon,
president of the Baltimore and Ohio
Southwestern Railway; Louis Fitzgerald,
president of the Mercantile Trust Com
pany of New York; Henry Bulge. of Au-
gust Belmont & Co, and William A.
Read. of Vermilye & Co.. all of New
York city. William c. Gulliver is counsel
to this committee, and Alvin W. Krech
secretary.
Baltimore capitalists are more or less
| interested in these different leased lines.
| The largest holdings are in the Central
| Ohio Railroad. In unpaid rentals the
| Baltimore and Ohio Railroad Company
! owes the Central large sum of money.
| and there is dispute in court over the
| subject This is one of the important sub
| sidiary lines, and on IT, as stated by Mr.
| Bacon. a large sum of money is to be
| spent to reduce grades and increase the
+ efficiency of the property. Considerable
| progress has been made in framing a plan
| for the adjustment of the affairs of the
Central Ohio. Mr.. d. G. List, chairman
| of the committee appointed by the di-
| rectors of this company for the purpose
| Of comforting with the advisory COM
mittee was in Baltimore yesterday. He
| said that no conclusion had been reached
/ as yet but 1t was hoped to have plan
ready I'm about ten days The Central
| Ohio runs from Bellaire, Ohio, TO Column
bus, Ohio, and has about 143 miles of
| track 1t is leased by the Baltimore and
Ohio, and the rental agreed upon was 30
| per cent of the gross earnings of the
| road.
Other leased lines OF the Baltimore and
Ohio Railroad Company, the affairs OF
which are to be readjusted, are:
/ Columbus and Cincinnati Midland, run
! ming from Columbus TO Midland City,
! Ohio. seventy miles This road was leas-
| ed by the Central Ohio, and the lease
! assigned by 1t 10 the altimore and
! Ohio. The rental agreed upon was in
| terest on the bonds and 3 per cent divi-
dend on the preferred stock. Payment OF
| this dividend has been suspended. Its Sc
| ,urities are not largely held in Baltimore.
N.
Newark to Shawnee, Ohio, forty-six miles
| of track, operated by the Baltimore and
| Ohio under a lease to the Sandusky,
! Mansfield and Newark Railroad on a
.ental of 30 per cent of the gross receipts
with a minimum payment OF not less
than siOO0 a year. Its securities are only
! sparingly held in Baltimore
The Sandusky, Mansfield and Newark
| forms the Lake Erie division of the b &
! n from, San6uSEV Newark,
/ Ohio lie miles Leased to the Central
I Ohio at a rental of sol, $50 guaranteed by
the Baltimore and Ohio. Its securities are
sparingly held in Baltimore.
Schuvlkil River. East Side, a short con-
Meeting line on the Philadelphia dlvi5-
ion. operated under a contract between
tbe baltimore and Ohio Baltimore and
/ philadelphia and the Philadelphia and
/ Reading Some of its securities are heid
| in baltimore. but the bulk of them be-
! long TO Philadelphia investors.
winchester and Potomac Railroad and
| the Winchester and Strasburg Raliroad'
both part of the Shenandoah Valley dl-
vision of the Baltimore and Ohio Inc
/ Winchester and Potomac runs from Har-
| pers Ferry, w. Va, TO winchester, va
| tbirtv-two miles. 1t is leased 10 the Bal
| tir,ora and Ohio for an annual rental OF
| So 900 a wear The Winchester and Stras-
burg runs from Winchester 10 Strasburg,
| Va twenty miles, and Is leased 10 the
| baltimore and Ohio under an agreement
to nav per cent annual dividend on the
canital stock Securities of both roads
are largely held in Virginia
dispatch from New York last night
stated: THE reorganization managers
of the Baltimore and Ohio Railroad per
sist in refusing to make any statement as
70 the transfer of large interest In the
nroperty TO Philip D. Armour and other
Western men, William Solomon, of Spey-
or G. Co. one of the voting trustees nam
ed in the reorganization plan, said that
no statement would be made concerning
the deal by the reorganization managers
1--WE had sold this stock some time be
fore the matter became known. he de
clared. and we would never have men
toned the sale If the purchasers choose
to mention the transaction, that Is some
thing that does not concern US
.Mr. Salomon's statement shows tina
the announcement of the purchase wa:
made by Mr.. Armour and his friend:
after mature deliberation, as the sale haC
actually been consummated some tim'
previously. and the secret had been vel
kept by the Baltimore and Ohio Officials
and reorganization managers"
: WATCHED HIS WIFE DIE.