Evening star., 1898-02-03
B. AND O. AFFAIRS
Plan Of Reorganization Prepared by
the Committee.
SCALING OF INTEREST ON THE BONDS
Moderate Assessment on Common
Stock Part of Plan.
MARY AND'S INTEREST

A runner h Is reached this city that the
New York reorganization committee of
the Baltimore and Ohio Railroad Com
pany had agreed upon a plan Of reOr-
gariZation. and that the details would soon
be submitted to those interested for con-
s;deration. Those who are in a position TO
know the views of the strong minority of
bondho1ders represented by ]. p. Morgan
& Co. say that unless the plan fully recog-
rizes the rights Of the latter its purposes
calnot hope to get the assent of enough
security holders for the plan to become an
accomplished fact.
According to the rumor, the plan evolved
by the New York committee provides for
scaling the interest on the bonds and for
a moderate assessment on the common
stock, for which preferred stock will be
gwen While 1t does not follow that th,
pian, ii II really has been formulated will
be accepted persons whose sympathies are
with Morgan and the Baltimore reorgan
i-auon committee say that the arrange
,neht tt "nicn ohers the best inducements In
lne way OF keeping the assessment down
VIII be the one uEder which the reorpan
1zatlon Will take place.
IL Is further reported that in the New
fork plan provision has been made fo.
retiring the receivers certificates as tbesn
according to the decisions of MARYLAND
courts, are prior len on the propertv and
nus mus, pe satIshed before the road can be
en 1aken out of the hands of the receivers
MS Indebtedness amounts to $4,000. 900.
Sale of States Stock.
The proposition to secure the nass,oa 90
an act by the present legislature tn .u-
thorize the state controller of MARYLAND tn
sell the states holding of stock in tho
washington branch of the Baltimore and
oiiio hallroad Company, amounting to 15f
Shares, the par value of which is $40 oeo
mas received fresh impetus during tbe
@ pist rev days. and it is stated that the
.,iost vigorous efforts will be made to ,,ass
'he Dill, and that a Powerful lobby wifi he
or hand at ANNAPOLIS for that purpose
shortly The total Capitalization of tbo
, loah oH, Is sl.G'o.@o. Of which the Baltimore
anu ONO Company held 81 OBS 600. and sun
ury individuals $1,000. The Baltimore and
ONO holding has been pledged. along with
otnef securities, ard is Included in the con-
.oiiuated .. 10 @ NOR gage Dividends amounting
10 ~ per cent per annum were paid for
over thirty years on the total capitaliza-
uoh, winch, as it Is rated, is small prob
ably about one-third of the value of the
pranch. according to conservative esti
mates of financiers The dividend navment
que May IL. 1897. was passed and since
that time the holders of stock. Including
ihe state, have received none of its earn
ings. 49, N "
The state, therefore, loses s55 OOO nor an
mum by the loss of this dividend. which
mad been paid as regularly as the rising of
lhe sun for many years. and was consifl-
ered one or the best obtainable AT one
time the stock was in the neigbborhood of
2N 1t was subscribed for by the state In
1853, when the state granted the charter
for the construction of the branch from
Relay to Washington.
The state took the investment to helm the
baltimore and Ohio Company in its work
of constructing lines. by which trade was
diverted to Baltimore. In this movement
Maryland was actuated by the same mo-
tives in building up the trade of the city of
baltimore as actuated it in advancing mil
lions of dollars for the construction of the
Chesapeake and Ohio canal.
Investments in Main line.
The state likewise invested millions of
dollars in the main line of the Baltimore
and Ohio This investment, together with
the holdings of the city of Baltimore. was
disposed of about ten years ago, the Johns
Hopkins University trustees being among
the purchasers. Up to May l. 1897. the
state of Maryland had received in dividends
on the stock about 81 800 600.
Every financier and railroad man recop
nizes the fact, it is said, that the Wash
1ngton branch of the Baltimore and Ohio
extending from Washington to the Relay
a distance of thirty miles. is beyond com
pare the most valuable portion of the en-
tire system; in fact. that it is doubtful if
there Is another thirty miles of road in
American that is more valuable. and that
1t would be a bonanza to any syndicate
that can purchase it.
Financiers who have examined the con-
ditions under which the stock was issued
and the conditions and equipment of the
road itself found that the entire lien upon
the road was but 81 $50 900 There are no
bonds, nor can any be issued without the
consent of the state to such Il procedure
as the state is exactly a one-third owner of
the stock.
1t is believed to be the design of those
who are aiming to purchase the stock
either to sell at enormous profits or to
place the lines new owners in position to
mortgage the road to it's full value " Wlch
with the terminals in this city Is conserya-
lively placed al 5000 900. 1t is understood
that the syndicate which desires to secure
the road proposes to offer S550OO0 which is
the par value, but in view of it's earning ca
pacity ii is be.,eved the state would NOT ac-
cept less than 500 per share for its inter-
est.
Provision of Law.
AS a matter of fact, law is already in
existence, it is said, authorizing the board
of public works of the state to sell the
above and other stocks at its discretion
1t is claimed by some very well Informed
persons. that. despite the denials of he
ceivers Cowen and Murray, the Baltimore
and Ohio would be very glad to get hold of
the Washington branch stock as 1t would
give them ownership of the whole property,
the other twO-thirds of which they already
control.
1t is asserted that they have ayailed
themselves of the control to stop dividends
thus depressing the market value of the
stock h11ff ba mi of