Evening star., 1899-01-02
B. AND 0. GENERAL MANAGER
Frederick D. Underwood of st. Paul Sue
ceeds W. M. Greene.
Sale of Maryland's Interest in Metro
pOlitan Branch Ordered-PrObabil-
tiles Under New Manasement.


Mimi, as was foreshadowed in The Star
several weeks ago, has been appointed gen.
eral manager of the Baltimore and Ohio
Railroad Company. to succeed Mr.. w. NJ.
Greene. who recently became vice presi-
dent of the Baltimore and Ohio South
western.
The appointment of Mr. underwood
shows, it is claimed, that the Chicago par
ties who recently acquired large interests
in the Baltimore and Ohio company will
dominate its policy in the future, and that
the long-pending contest between Receiver
Oscar G. Murray and Mr.. James ]. Hill,
the representative of the western people,
as to the choice of a general manager has
resulted in a victory for Mr.. HILL 1t is un-
derstood the salary of Mr. Underwood will
be $25, 900 year and that he will live in
Baltimore.
The board of public works of Maryland
has ordered the sale of the states interest
in the Washington branch of the Baltimore
and Ohio. and when the deal is completed,
which will undoubtedly be in the course of
a few weeks, there will be nothing of i'm
portance left for the reorganization COM
mittee to do toward securing the complete
control of the Baltimore and Ohio main
line and all its most desirable branches.
Valuable Asset.
branch of the Baltimore and Ohio Rail-
road Company has been a valuable asset of
the treasury for more than sixty years
Until 1886 it regularly paid dividends, and
ever since the repeal of the capitation tax
those dividends have been 10 per cent.
The Washington branch is thirty-one
miles in length, extending from the Relay
House to Washington. Over it passes not
only the great traffic between Baltimore
nd Voc h fnrr lot
country, but all western passenger traffic
originating in New York, Philadelphia and
Baltimore. 1t is one of the few unmort-
gagged railroad properties in the United
States, and its earning capacity is such
that it not only paid 10 per cent dividend
on its stock, but in addition had earned
over $Soo,0oc, which amount, it is said,
due to the branch line by the Balti-
more and Ohio when the latter passed into
the hands of the receiver. u
The entire capitalization of the road is
s1,f5C, ,00o, divided into $500 shares. OF
these shares the Baltimore and Ohio owns
10,2S0, the state of Maryland $500 and the
remaining 40 shares are held by individ-
uaiS
Last June suit for the appointment of re-
ceivers for the Washington branch was in
stituted in the United States court by
Reverdy Johnson and John ]. Donaldson,
executors of the estate Of Martha E. Gray.
The court asked to appoint receivers
to operate the branch for its stockholders
and to require the Baltimore and Ohio
Railroad Company to account for the roll
ing stock and revenues of the branch al
legged to have been taken possession of by
the Baltimore and Ohio.
Move for Intervention.
At the session of the Maryland legislature
of 1898 Senator Crothers of Cecil county
introduced a joint resolution requiring the
attorney general to intervene in the receiv
ershp suit of the Baltimore and Ohio Com
pany in behalf of the state and ask for the
appointment of separate receivers for the
Washington branch, take other appropr-
ate action fol. the protection of the states
interests. This resolution passed the SEN
ate, but was lost in the house.
The state constitution of 1867 reserved
this stock from sale but the constitution
was amended in this respect. In 1899 a
law was passed prescribing the method of
selling the states securities. but still re-
serving the Washington branch stock from
sale. In iSG this law was repealed and re-
enacted to include it in the power of
sale. The sale is required to be made after
proper advertisement for sealed proposals
for the purchase.
If the PatinlOre and Ohio Company is re-
organized under the old charter without any
sale under foreclosure proceedings, the
status of the Washington branch stock it
would appear. would remain unchanged;
but if the road is sold under a mortgages
sale and goes into the possession Of a new
company, the result might be different, al
though, as no existing mortgage touches
the Washington branch it is hard to see
how sale under 81 mortgage on another
property could affect it.
The states One-third interest in this mag
nicent unincumhered property, which has
an entrance into Washington which could
not now be purchased for millions, is with
out doubt worth large sum of money.