Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-01-17
B. AND 0. AFFAIRS
Meeting Of the Stockholders in Bal
timore Today.
WHAT THE ANNUAL REPORT SHOWS
Consolidation With the Pennsyl-
vania Road Not Probable.
ADVANCE IN FREIG HIT RATES

The annual meeting of the stockholders
of the Baltimore and Ohio Railroad Com
pany was held at the general offices of the
company in Baltimore at noon today. The
meeting was a mere formality, as the stock
| is vested for number of years in a vot-
Ing trust which is composed of Messrs
William Solomon, Abraham Wolf, j. Ken
nedy Todd Louis Fitzgerald and Charles
H Coster, all of New York the latter of
whom represents the holdings of ]. p.
Morgan & Co. in the Baltimore and Ohio
company.
The program as laid down was carried
out, the old board of directors being re-
elected. and Messrs John K. Cowan presi-
dent; Oscar G. Murray, first vice president,
and F. D. Underwood, second vice pres-
dent and general manager. were again
chosen to the places named for another
year.
The annual meeting had been postponed
on several occasions owing to delay in
making up the reports for the year end
ing June 30 last the change from the
recelvership to the present regular organi-
cation having caused some complications
which are not likely to again occur but
which We're unavoidable under the crcum-
stances. The annual report which was
presented at the meeting, copies being fur
nlshed TO those entitled to them, was a
Folum1nous document, covering all the op-
e1auons of the company during the twelve
months from July, 1888, to July, 1899 but
as regards the earnings of the road it
was simply a reorganization of the month
ly statements already printed.
1t was stated that the report did not
show what the real earning capacity of the
Baltimore and Ohio is, for previous to July
lsH', the condition of rates was for a long
time sadly demoraliZed, and the Baltimore
and Ohio was during that period constantly
losing business through lack of facilities
Tor handling even a sufficient amount of
tratflc to enable the road to earn its fixed
charges.
Facilities Provided.
The provision of needed facilities, includ-
ing large additions to the rolling stock and
passenger equipment, and the rebuilding
of a large part of the line, together with
the carrying out Of policy to leave no
honorable means untried to get business,
has, it was stated, succeeded in restoring
to the Baltimore and Ohio much of the
traffic which had been diverted to other
mes and has placed it in a position to
take care of all the business that is offered
10 II. 1t was also stated that the MAIN
tenance of scheduled rates during the past
SIX months has enabled the company to
make the best showing of earnings it has
ever made for any corresponding period in
me history of the Baltimore and Ohio COM
pany
If, as reported from Philadelphia Mr. A.
j. CaSsatt Is the owner of a large block of
stock in the Baltimore and Ohio of sufti-
Gent size to give him, the Pennsylvania
Railroad Company, which Mr.. Cassatt is
supposed to represent in the matter the
control Of the Baltimore and Ohio the fact
was not officially developed today When
asked as to the truth of this report before
leaving New York. Mr.. Solomon. who is
chairman of the executive committee of the
baltimore and Ohio, said he knew nothing
about any purchase of Baltimore and Ohio
STOCK by Mr.. CaSSatt. could he
from his own knowledge whether or not ].
j. Hill, who has for some time also been a
large holder of the stock, had sold a part
of his holdings, has also been reported.
While there have undoubtedly been some
important movements made recently among
the great railway magnates in New York,
and the outward evidences seem to point to-
ward the consolidation of various lines no
actual consultations such as We're alleged
TO have occurred are, it IS believed, con-
templated or will at any time be carried
into effect.
In the Hands of Few.
Banking and railroad circles in all the
great cities have long known that the af-
fairs of nearly all the important railways
i'll the United States We're in the hands of
a comparatively few New York and Euro
pean bankers and many well-posted men
have felt that the era was rapidly APP
preaching when there would be but three
great systems of railways in the Union.
One of these would. it was stated. be dom
mated by the Nanderbilts, the second by
the Pennsylvania company and the third
by the Southern. Recently, however, the
latter has met in the country south of the
Potomac and east Of the Mississippi what
promises to be a very aggressive compete
tor, the Seaboard Air Line, and unless all
signs fail it may seriously interfere with
any projected plans for the merging of all
the railways in the south into one system.
An examination of PoorS Manual, which
is the acknowledged authority as regards
the actual condition of every railway in the
Union. shows that there are a number of
lines in which the Vanderbits either
the entire or controlling owners. Among
these are the New York Central, Lake
Shore and Michigan Southern, West Shore,
Nickel Plate and number Of others of
greater or less importance. The stock of
the Pennsylvania is scattered among a
large number Of people, ana II is SAID
Pennsylvania than in any other railway
company in the world.
Just how much money is invested in rail1
way stocks in the United States is not
known but the figures run up into the bill
lions. For a long time previous to the pres
ent era of prosperity the holders of most OF
those stocks, il is said, received little or no
interest on their investments. Now that
there is every reason to believe that bust
ness will continue good in this country for
some years to come, at least these capital
lists are asking that railway properties be
managed in such way as to properly re-
munerate their owners.
Maintained It's Rates.
The fact is pointed out that no matter
how much the depression in business, the
Pennsylvania people stood by their sched-
uled rates. often rejecting business rather
than violate a rule, and the Pennsylvania
has been able to pay dividends to its stock
holders when most other great railway
properties did not.
1t is believed that the course of the Penn
sylvana in the respect mentioned has at
tracted the attention of the managers of
other railway corporations, and that
the latter have arrived at the conclusion
that the way to get dividends Is to MAIN
tain rates. and where it Is necessary to buy
a large block of stock in a road which has
been 4 rate cutter in the past. and the
stock was for sale, the purchaser has not
been found wanting. but in well-informed
circles the opinion is expressed that there
will not be any actual consolidation of the
Baltimore and Ohio Chesapeake and
Ohio with any of the various roads con-
corning which reDOrts have been rife for