The times., 1899-07-01
THE RHCEIVBRSHIP ENDS
The B. & 0. Railway Turned Over
to the Stockholders.

A New Fiscal Year Begun on New
Basis-John h. Cowen, President,
and Oscar G. Murray. Vice Prcsi-
dent-Brief History of the Success
full Reorganization of the Road.
Baltimore. July 1.-12:30 a. m.-The re-
ceivership of the Baltimore and Ohio Rail-
road terminated at IL O'Clock last night
and the property was turned over to the
stockholders without celebration or for
| NAL ceremony. The new officers are:
President, John X. Cowen; First Vice
President, Oscar G. Murray; Second Vice
President and General Manager. Fred d.
Underwood; Treasurer. W. H. Ijams; Sec
| retary, C. w. Woolford; General Attorney,
| Hugh L. Bond, jr.; Board of Directors,
William Solomon. Chairman, New York:
Jacob H. Schiff. New York; James ]. Hill,
| st. Paul: Edward r. Bacon, New York;
Norman B. Ream. Chicago: James Still
| man, New York; Edward H. Hartman.
| New York; ]. Kennedy Tod. New York;
| Charles Steele, New York; Alexander
Brown, Baltimore; H. Clay Pierce. st.
Louis; H. Crawford Black, and John v.
! L. Findlay. Baltimore. The executive COM
mittee is composed OF William Salomon,
| Chairman; Jacob II. Schiff. James j. Hill,
Edward R. Bacon, Norman B. Ream, Ed
ward H. Hartman. and Charles Steele.
John X. Cowen and Oscar G. Murray
were appointed receivers of the company
on February 90, 1896, by the United States
Court for the district of Maryland. Being
familiar with the needs of the property,
the receivers decided that the only wise
course to pursue was to practically re-
build and re-equip the railroad. Its physi-
cal condition was bad, its equipment an
tiquated and inadequate to handle busi-
ness, and its insufficiency was such as to
seriously injure the revenues. The re-
ceivers' plans were discussed by the Sc
curity holders, and as a large majority
| agreed to the provision of enough funds
to place the road in a condition to handle
its traffic, they obtained permission of the
court to issue certificates for the pur-
chase by means of equipment trusts and
receivers certificates of new cars and To-
comotives, and to improve the physical
| condition of the property.
| The court took a broad and liberal view
of the situation, and, although there was
opposition on the part of some of the
minority security-holders, granted the pc
tition, and the result is well known. The
Baltimore and Ohio Railroad is now in
good physical shape and has equipment of
modern construction sufficient to handle a
large traffic satisfactorily. The gross earn
ings have greatly increased. and the net
earnings are expected to be larger when
the improvements now under way become
| available. =t4f
The reorganization plan, as prepared by
its managers. Speyer Bros & Co.. of Lon
don; Speyer. & Co.. and Kuhn, Loeb &
Co., OF New. York, and the advisory COM
mittee-Gen Louis Fitzgerald, E. R. Ba-
con, Henry Bulge. and w. A. Reed-gves
the company the following new securities;
Prior lien. 3 1-2 per cent gold bonds.
$40, 900, 900; first mortgage, per cent gold
bonds, S63, 600 00e; 4 per cent non-cumu-
lative preferred stock, s4O,000,000; common
stock, $35. 600. On June % the pre-
ferred stock was increased to $50, 600. 900,
and the common stock to S45, ,0OO 900, for
the purpose OF carrying out the plan of
reorganization OF the Baltimore and Ohio
Southwestern Railway. The plan also pro-
vided for the payment in full of all le-
ceiyers, indsbt edness.. the entire floating
debt 9of the comPary. represented by
promissory notes and negotiable obliga-
tions, and of all car trust obligations, en-
abling the company to begin the fiscal
year of 1S99-1900 with all its obligations
paid For the reason that the organization
was possible without a foreclosure, the
original charter of the company remains
in force, and the next annual meeting oil
the stockholders will be the seventy-third
The new stock of the company is held by
interests which cannot fail to be OF great
help to the property, and much new cap
ital has been invested in the securities,
and there is sufficiency of money for still
further improvements, which are in prog
ress, with view to still further reducing
the cost of transportation. The proposed
expenditures on the property aggregate ap-
proximately $4,000, 600. During their ad-
ministration the receivers purchased 1880
box cars, $3.50 wooden gondola cars, 5000
pressed steel cars, 80 miscellaneous
freight cars, postal, express. and dining
equipment, at a total cost of $17, 900. 900.
The 216 locomotives cost nearly 81, 500,-
0O0 The steel rails purchased amounted
to 1913 010 tons, costing 81, l42. 1S2, and there
were bought over 5000, 900 cross ties cost
ing 81, 200, 900, and 100000 cubic yards o.
ballast amounting to s525,O00. The new
steel bridges aggregate in value $15O.OOO
and fully as much more was spent in i'm
proving the several terminals, erecting
new buildings, reducing grades, ant
changing the alignment. The main
, tenance of way payrolls, or the amount
|, paid directly to men employed in making
improvements on the tracks, ETC., in thre,
years, was nearly twelve millions OF dol
lars. The total amounts 10 ABOUT $00, ,UUU,
600, of which about Si5, 100000 was Sc
cured by the issuance of receivers certif.
, Gates and the balance through car trusts
earnings from the property, and from the
reorganization managers. Most of tn,
purchases of equipment and rail were
made when material was low in price an(
. manufacturing concerns were in great ncct
) of orders to keep their plants in operation
5 Steel rails are worth now from Sc ID 5!
! a ton more than when the receivers mad,
) their purchases, and locomotives have ad
vanced from 81, 900 to $4,000 in price. Tht
equipment alone, il purchased today
: would cost s., 900, 900 more and the othel
l Improvements s1,08O.OOO more. Presden
Cowen has issued circular announcing
, the retention OF all the employees of the re-
ceivers in the service OF the company. ",
t official changes OF Importance are con.
; templated.
Discharges in the Norfolk Navy Yari
Norfolk, Va, june 20.-About 500 work
, men will be discharged from the Norfoll
navy yard today During the past year tn,
yard has been working on an emergency
: appropriation made for the conduct of tn,
> war with Spain and these are unavailabl,
after June 80 Probably many of those dis
charged today will be reinstated when an
other appropriat ton becomes available