Evening star. [volume] (Washington, D.C.) 1854-1972, 1901-03-08
HOUSEHOLD MATTERS.
D RAILROAD MERGER POSSIBLE.
Pennsylvania Said to BE COntemplat T.
ing II. and o. Purchase.

Pennsylvania Said to BE Contemplate
ing II. and o. Purchase.
From the Philadelphia Press.
There are sufficient reasons for announc-
ing that the management of the Pennsyl-
vania railroad has determined to obtain a
greater interest in the Baltimore and Ohio
railroad, and that it may dominate the
property.
AS is well known, the Pennsylvania has a
considerable ownership in the Baltimore
property with representation on the board
of directors At the close Of last year these
holdings We're said to be centered entirely
in the preferred stock and to have COM
prised Sis, 900 600 par value of the outstand-
Ing stock of 500, 100000. 1t is believed that
this year the Pennsylvania has bought into
the common stock and has also acquired a
considerable amount of the new convertible
bond issue
There has been no outward sign of diff
ference with the other proprietary interests
as to the conduct of the affairs of the road,
and apparently matters have run smoothly
since the consolidation of interests some
months ago. However, the Baltimore and
Ohio methods as to management and per-
haps finance are not the Pennsylvania
methods. and that may have given rise to
some divergence Of views, with the result
now predicted.
1t Is certain that the Pennsylvania rail-
road, when it acquired Baltimore and Ohio
shares, had no intention of exercising full
control or ownership, but it is also a well
recognized fact that the bankers who
financed the latter road are in close affilia-
ton with the Pennsylvania. 1t is probable
that they would look with favor on a more
definite control of the property by the
Pennsylvania.
A further reason for sucI. control is gen.
orally accepted. Not only does the Penn
sylvania desire to protect fully its present
interest in the smaller road, but other pur-
hi
sociates are known to have in view render
1t of vital Importance that the Baltimore
and Ohio property should be under close
supervision of the more dominant trunk
lines. The question resolves Itself into one
Of more than mere present eXpediency. 1t
amounts to present provision for possible
future demands that may arise in the fur
Their development of the great scheme of
the community Of ownership by the major
trunk lines
lie Baltimore and Ohio originates an ex-
tremely large bituminous tonnage and has
entire markets. 1t possesses Independent
entrances into New York, Philadelphia,
Baltimore and the national capital 1t has
important connections with many competi-
I'VE points both in the east and south
Finally, the road is in fine physical condi-
ton, especially as to equipment a large
amount Of money having been spent re-
Gently on Its rolling stock The sum of all
o. winch is that it would prove dangerous
competitor for even the best equipped lines
in the country.
The J, J. Hill and J, P, Morgan interests,
as we'll as the principal banking interests
would no doubt look with approval on anv
plan of the Pennsylvania to dominate This
property more fully.
1t may be said that should the Pennsvl-
vania eventually get control, as is now pre-
dicted the present relations of the RaIti-
more and Ohio with the Reading comyany
would be changed in large degree. and
would result in interesting complications II
the control of the Reading were not in a
broad 1 sense OF the term practically. iden-