The times. [volume] (Washington [D.C.]) 1897-1901, 1900-01-16
Big RAILWAY DEALINGS
The Pennsylvania Is Said to Control
the B. & .. and {. 4 o.
Purpose of the Recent sI3.OOO.OOO
Bond Issue of the Absorbing Sys-
Iy Secured In the Open NRrkct-Thc
SanderbiIts Acquire the Big Four.

BALTIMORE. Jan. 1.-THE annual meet
ing OF the stockholders of the Baltimore
and Ohio Railroad Company. which will be
held Wednesday next win, it is believed
in some quarters, reveal the connection OF
the Pennsylvania New York Central in
terests in the Baltimore and Ohio property.
The new interests may not show their
hands. but it is possible that they may be
given representation on the board. The an
nual meeting and election has been post
poned from time 10 time since November
This the officials say. is due entirely to
the fact that the annual report has not
been ready for submission to the stock
holders. There is. however, believed to be
another and more important cause for the
many postponements. Some attribute 1t to
the alleged new deal and others 10 the wish
OF the management TO announce to the
stockholders that the negotiations for the
amalgamation of the baltimore and Ohio
Southwestern with the Baltimore and Ohio
have been consummated. These negotiations
have been pending ever since the Baltimore
and Ohio Southwestern wa taken out Of
the receivers hands.
William II Greene. former general man.
ager of the Baltimore and Ohio. and now
Vice President and General Manager OF the
Baltimore and Ohio Southwestern is op-
posed 10 any arrangement which has for its
object the operation OF the Baltimore and
Ohio Southwestern as a division OF the
Baltimore and Ohio. That is the plan. and
it is generally believed tina. Il viii be car
ried out in time, despite Mr.. Greenes OBJ
lection.
The Baltimore and Ohio has issued its
own securities in exchange for those OF
the Baltimore and Ohio Southwestern, and
1t was generally believed that wheu this
was done the Baltimore and Ohio South
wesern would lose its identity. but thus
far MIR. Greene has successfully blocked
all steps in that direction. The new in
terests in the Baltimore and Ohio are said
to be anxious to carry out ne original !
plans and something on the subject may
be given out after the annual meeting on
"Wednesday.
1t is pretty well understood that John
X. Cowen will be reelected President of
the Baltimore and Ohio at the annual |
meeting.> None Of the vice presidents will |
be re-cleSted because they were originally |
elected by the directors and without the /
turmality of a reelection they retain their !
Offices until their successors are named !
1t is stated on good authority that the di- |
rectors viii take no action toward chang |
ing the vice presidents.
When the stockholders get together they /
will hear that the Baltimore and Ohio has I
earned in the last six and a half months !
over 81, 900 net which is sufficient to /
cover all Of the companys fixed charges. |
The fiscal year ends June 30 1900 and |
a Baltimore and Ohio official stated this
morning that il the present rate of earn
ings continued up to that date the road /
would have sufficient net earnings to pay /
4 per cent on $50. 600 900 of preferred stock.
and in addition 5 per cent on the $50 900 600 |
of common stock But he added that the
5 per cent would not be paid on the com
mon stock. but that a great deal of il /
would go back into the road Tor better
ments.
According TO a despatch from PhiIadel-
phia. the real meaning of the new Sl3-
000. 900 Pennsylvania Railroad stock issue
does not rest in the plan to abolish grade
and the erection of a new station
in Pittsburg at the cost of 81. 500 600 to.
gether with betterments elsewhere over the
great system, but in meeting payments for
extended purchases of stock of the Chesa-
peake and Ohio. said to amount to 100 600
shares.
A prominent Pennsylvania Railroad Of
fetal is quoted as saying:
Chesapeake and Ohio shares have been
purchased in very quietly during the past
few months in order to effect an impor-
tant, far-reaching railroad deal When
ever a share was offered in the market
1t was picked up, and the purchasing was
done so sltillfully that the price was not
disturbed in the slightest degree IL is
stated that Mr.. Cassatt bought in this
way block of 100000 shares OF
and Ohio stock through
Jacob Shift, of Kuhn Loeb & Co
New York, and James J. Hill, Presi-
lent OF the Great Northern. The buying
IF Chesapeake and Ohio is another story
when William X. Vanderbilt succeeded
MS brother Cornelius he found that the
earnings Of the Vanderbilt system had
,een greatly reduced by competition. Then
ollowed the formation of combination.
"A full majority OF the stock of either
he Baltimore and Ohio or Chesapeake
md Ohio was not obtained but Pennsyl- |
iania is credited with having sufficient TO
'ontrol the policy of both and select the
There is no intention to con-
,olidate the properties The only purpose
# Mr. Vanderbilt and Mr.. Cassatt is to
establish and maintain rates.
The New York Central secures prac
ical control OF the Big Four and the
lake Erie and Western as its part OF the