Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1901-03-16
PENNSY owns THE B. 0.
The Pennsylvania Has Secured
a Majority of Stock in the
B. & 0.
Mr., SALOMON WILL RETIRE.
A Change VIII be Made in the Directory
Practically in Control Of Affairs
win Likely Build Union Sta
lion at Washington Soon.

ION al washington oUoHs
New York, March 14.-That the
Pennsylvania Railroad has virtually
acquired control of the Baltimore a
Ohio was admitted by a member of
the firm of Kuhn, Loeb & co. 1t has
been known for some days in Wall
street that the Pennsylvania had
been quietly buying Baltimore d OHIO
stock through various banking houses
but not until Yesterday was any
thing like an official confirmation of
the fact obtainable. Kuhn Loeb 81
Co. have been closely identified with
with the finances of the Baltimore &
Ohio. One of their representatives,
was asked whether additional mem
bers of the Pennsylvania Railroad di-
rectorate were likely to be elected
directors of the Baltimore q Ohio.
He replied frankly 1.-THE Pennsyl-
vania railroad can have anything in
the Baltimore x Ohio it wants. =
He intimated that al least two addi-
tional directors of the Pennsylvania
might enter the Baltimore & Ohio
board. 1t is expected the Baltimore
& Ohio will continue to be operated
by its own officers, the Pennsylvania
merely acting in the capacity of trus-
tee. The situation now existing is
similar to hat resulting from the
Union Pacific's recent purchase of a
large block of Southern Pacific stock.
1t is rumored in Wall street that a
part of the Pennsylvania new issue
of 800. 900, 900 of stock will be issued
to pay for Baltimore & Ohio stock
recently acquired Various estimates
are made of the latter, but in a relia-
Bile source it is claimed that 200, 600
shares each of common and preferred
have passed into the PENNSYLVANIA
hands. The acquisition of stock has
taken place quietly, through banking
syndicates, aud the stock exchange has
not indicated any transactions of note.
An important outcome of the
largment of the Pennsylvania Rail-
roads interest in the Baltimore 81
Ohio Railroad is q demand for the re-
organization of the voting trust now
in control of the Baltimore and Ohio
affairs and for the retirement from
the craftsmanship of the Board of
Directors of William Solomon. Penn
svlvania interests are eutirelyconfident
that the demand will be granted,
and the assurance given by a banking
house with very large interests repre-
sented in the voting trust to the same
effect makes the Pennsylvania posi-
tion apparently secure. The Pennsyl-
vania, Pierpont Morgan and Kuhn
Loeb Go. interests it is stated, are.
entirely in harmony on the question:
of control in the Baltimore 81 Ohio
and have a majority of representatives
in the voting trustees in whose hands
the management of the road will re-
main for more than two years.
There has been no demand on the
Pennsylvania Company for a change
in the operating department. of the
road, where the achievements of Pres
ident John X. Cowan and his assist
ants have been highly praised by prac-
teal railroad men.
The Pennsylvania up to a very re-
cent period held only preferred stock
of the Baltimore q Ohio; having ac-
cumulated 16, 600 shares up to the time
of its last annual report. The Penn
sylvania directors, however, found
that the majority of the board favor
ed a dividend ON the common stock
and they yielded the point with good
grace, the vote being unanimous.
Some months latter, however, a suit
was entered by some small stockhold-
ers of preferred stock to prevent the
payment Of the dividend ON the COM
mon. II was reported at the time
that this action was inspired by Penn
~sylvania Railroad interests.
Mr.. Solomon when questioned con
corning his retirement, denied that he
had resigned or had rendered his res
ignation. This denial, however is be-
lieved TO be of n technical character,
and it is web understood hat Mr.,
Salomon's resigation will be forthcom-
ing at the proper time. Mr.. Solomon
will sail for Europe on Monday fol
an extended stay.
To dominate the policy of the Balti-
more and Ohio in matters the Penn.
svlvania found it must acquire 9
larger interest in the road. 1t ha,
been steadily buying for six months
| and is said to have bought out near,y
| all the holdings of the large interest,
= represented by n member of the vot
ing trust. This member is expected
TO retire in favor of a Pennsylvania
=. trustee. The amount of the Pennsyl
vania holding is now declared by per
= come in +bo copnlanpa IF ire ofncials