The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1898-03-08
B. & %. AFFAIRS.

Gently granted " Judges Goit ana
Norris, OF the United States circuit
court OF Baltimore the Baltimore 6
Ohio Railroad Company has secured a
large amount OF new equipment, and It
Is expected by the receivers that the
receipts OF the company win soon show
a marked increase. M y
II Is said by those IN a. position to
know that owing to a shortage In
freight cars the road has lost large
share In the traffic which the steady re-
yIyal In business Is developing The pre-
fent arrangement Is TO add 5000 add
tlonal cars. but II is estimated that the
company needs at least 10000 new
freight cars alone. Under present con-
dltIOns II Is believed the company Is
losing business because OF tho lack OF
cars 10 handle that which IL being Of
.ercd. It is said that during the last
six months there has been loss from
this cnuse OF at least 100000 a month,
and the amount, II Ia shown, Is getting
Larger each month. In this estimate no
account Is taken OF business which could
be secured for the road from having
constantly at hand a full complement OF
cars
1t Is fact well recognized among
railroad men that the road with a sur
plus OF cars attracts traffic which may
naturally belong to competitor. 1t Is
said that most OF the trunk lines get
big help in this direction from the lines
forming the western outlets, but the
roads which make up the Baltimore &
ohlo's western line are without equip
mcnt. and must depend upon the roll
Ing stock OF the main stem.
In spite OF the fact that the receivers
recently asked for the additional equip
ment referred to, there are some per-
sons who do not believe that its acqul-
slion will be the means OF adding much
net revenue 10 the company. a member
OF the reorganization committee Is au-
thor!ty for the statement that the conf
pany Is gradually but surely drifting In
TO state of hopeless insolvency. and
that reorganization OF the company
cannot be had without the process of
foreclosure. ElE
This official said to Star reporter:
Take for instance, the report OF the
company for the year ending June 80,
1897, md what does It show? A DELI
cheney OF Sl,l7712l, to which must be
added at least 100000 for deferred car
trusts, equipments and wheelage pay
ments, and cash sinking fund require
ments; an Increase of 100000 In bills
payable and loans. not counting the
item Of sl,200,000 Baltimore Belt rail-
road notes, which for the first time
found Its way Into the Baltimore &
Ohio balance sheet. and an Increase of
$500, 1000 in fixed charges. In addition to
this there was charged 10 construction,
Sl.S95.i so. and It Is questionable
whether at least $l,0O0.000 should not
have gone in to operative expenses.
$50 much for last year Now what do
We find this year? Nearly every road in
the country showing very largely in
creased earnings except the Baltimore
& Ohio. which. from the extraordinar-
fly meager reports made, Is showing
very little gain In gross, and from the
failure to- mention net earnings prob
ably showing no increase over last
gear. Again, the coal trade. which Is
the class OF business upon which the
Baltimore G. Ohio is largely dependent.
IS feartully demoralized. and rates are
decidedly lower than last year. which
were considered suicidal. Further. the
receivers are going on creating new OBJ
legations. and, although they have pur-
chased thousands of cars, are stlll try
ilG for more, and are attributinS the
bad business OF the road to n lack of
equipment In addition to the mlser-
able poor rates for coal, the Baltimore
(: Ohio has lost this year, as ] am cred
IDLY informed, 4 large portion OF Its
coal trade. Again, the obligations of
the company are increasing all the
time. Beginning with July next, the
company must pay as fixed charge
for three years 100000 per annum TO
retire the s5SI.0O0 Baltimore & Ohio
main line receivers certificates, issued
for the purchase OF steel rails, and the
car contract obliga lions authorized by
the court impose annual fixed charges
running for years.
There are several conflicting. and
antagonistic interests which must be
-ccorciled somehow, either through
compromise or by fight to the finish
and a survival OF the fittest. ]. p. Nor
gan &: Company are backing the hold
ers Of the consolidated mortgage, the
Chicago division, ParkersburG branch
and Pittsburgh and ConnellsVille first
consolidated bonds; Speyer & Company
are supporting and backing the interest
OF the Pittsburgh & Connellsville sec
oRd consolidated mortgage. and Brown
Bros. and others are looking after the
eight million four and one-half per cent
bonds. TIE SIX million Cleveland Terml-
nal and Valleys IS, the floating debt
secured by collatc-als. and other claims.
Taen we have the Central Ohio people
to dea! with: also the Sandusliy, Mans
Held and Newark, Columbus and Gin
cinnai Midland. and other bonds and
stockholders including the state OF
Maryland and the holders OF Baltimore
d OHIO first and second preferred stock,
are t" be considered when the time OF
settlement arrives.
Now what will be required to close
up this multiplied conglomeration?
Foreclosure and reorganization. And
what will reorganization require? First.
me raising OF fresh capital. say. from
s1V'uWD'oOO to S35,0OO,0O0 TO pay of the
receivers certificates and car and equip
ment obligations. which must be re-
urea, 10 redeem certain securities hyp-
"thtedsed, TO secure borrowed money.
INC consolidation coal stock. the stock
W tac Philadelphia branch Central
ohio, and other stocks and bonds now
held 10 secure borrowed money. must
ne recovered. as the Baltimore &c Ohio
cannot AFFORD 10 lose control of the
properties represented, and must COM
pcte Inc rehabilitation of the property
and pay the expenses OF reorganization.
:, second, must come reimbursement OF
tAr present securities OF the company