The Baltimore County union. [volume] (Towsontown, Md.) 1865-1909, 1902-06-14
WASHINGTON BRANCH of THE B. & o.
A Very Valuable Property in Which
the State Of Maryland Has
Large Interest.
The Baltimore Nescs.

The baltimore Ae1cS.
The Board of Public Works of the State is
said to be considering an offer from the Balti-
more and Ohio Railroad for the sale of its $500
shares of stock in the Washington Branch of
the road. 1t is understood that the offer is for
s1S5 share.
The Washington Branch of the Baltimore
and Ohio extends from Relay Station to Wash
ington. 1t was built many years ago, through
the assistance of the State, and so anxious was
the Company for financial assistance that it
created a remarkable contract, constituting the
States stock first lien on the gross earnings
of the road, by what is believed to be an I'M
breakable contract appearing on the face OF
each share of stock. 1t was further covenanted
that the State should not receive more than 10
per cent. on its investment, and for many
years before the main road went into the
hands of receiver the full 10 per cent was
paid
CEASED DIVIDEND PAYMENTS.
When the receivership was granted 1t did
not cover the Washington Branch, but since
October. 1885, the railroad has ceased payment
of this dividend, under the plea that the divi-
dends were to be use in Improvements, prln-
cipally the erection of road above grade
crossings in Washington.
Attorney General Rayner has instituted suit
for these back dividends, which will amount in
October of this year to 1880, 600, and for dl-
amount to more than s., 900, 900.
well known fnancier in discussing the
matter today, said:
No BETTER PAYING ROAD ANYWHERE.
1.-THE newspapers of the city should make it
very plain to the Board of Public Works that
the sale of this stock for anything like the
sum mentioned would be little short of a
crime. l don't suppose that in the whole
country there are 80 miles of railroad which
yield greater return than does the Washing
ton branch. don't hesitate to say that |
could organize syndicate in 48 hours which
would give $40, 900 for the whole property,
and Maryland owns but few shares less than
half the stock.
There is hardly any telling what it does
earn, if the truth were known. 1t is the con-
meeting. line Of the Baltimore and Ohio be,
tween the North and the West and South, and
their all trains run via Washington would
be lost without it. At the lowest calculation
the stock is worth $500 a share to Maryland,
for the dividend on it pays the interest on ST.
1873, 1888 of the States debt. With the interest
which has accrued and the undivided surplus,
| should say that the stock is worth between
$500 and $500 share to the State, if Mr.. Ray
ner can compel the payment of the amounts,
and have little doubt that he will succeed.
WORTH 81 900 SHARE TO COMPANY.
'As to what the stock would be worth to
the main road, that is largely matter OF
speculation. for no one has ever seen the books,
but should estimate that 81, 900 share would
be about the correct figure. They were charg-
ing everything against the road possible in
order to keep down its earnings, and still it
was reeling off its 10 per cent. per annum and
accommodating good surplus at the same time.
Everything on it is new, every tie, every
rail and nearly all the stations. 1t is ofcourse,
not right to charge all the contemplated inn
provements in Washington up to the Wash
ington branch, but this is what Mr.. Cowen said
would be done. With all this, it is great
dividend Garner. The press and the people
should insist on the completion of the suit
brought by Mr.. Rayner before any proposition
is entertained for the sale of the States stock.
We do not want any more than rightfully be-
longs to us, but we want all of that. If he
secures his verdict. the price of Sl85 share
would be ridiculous and would be so acknowl-
edged; and if be does not then the stock would
bring more than that at public auction, for
the road can no longer avoid the payment of
dividends. The Board of Public Works will
make great mistake if it endeavors to bring
this deal to a conclusion"
Mr.. RAYNER NOT INFORMED.
In discussing the matter Attorney-G General
Isidor Rayner said:
81 repeat, if any settlement has been made,
have not the slightest information on the
subject. While the Board of Public Works
may consider an offer am satisfied that they
would not settle case of this sort, involving
about 81 100000, without my approval"