Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-01-30
REPORT Is NOW IN HAND
MARYLAND HOLDINGS IN THE B.
AND O. ROAD DISCUSSED.


Special Dispatch to The Star.
STATE HOUSE, ANNAPOLIS, Md,
January Ex-senator German and Gen.
L. V. Baughman, directors on the part
of the state of Maryland in the Bafti
more and Ohio railroad, delivered their
report in regard to the Washington
branch to the state senate today. The
report, which is very long in substance,
is as follows, and deals largely with
the subject of the Washington terminals.
After referring to the order which
called for the report, the directors say:
The sole reason assigned by the Bal
timore and Ohio for the suspension of
dividends Notwithstanding that the same
were earned) was a necessity of provid-
ing for a new depot and other terminal
facilities in Washington.
The action did not meet with the ap-
prevail of the then directors selected by
the board of public works as will APP
pear from the record of the Baltimore
and Ohio"
The report directs attention to the
joint resolution of the legislature of 1900
calling upon the attorney general to in
stitute proceedings to protect the states
interests.
This, says the report was the
status of the case when we entered upon
the discharge of our duties as directors"
Sale Prohibited by Act
Reference is made to the act of 1892
which prohibited the board of public works
from selling the states holdings. Atten-
ton is then called to the repeal of this
section by the legislature of 1896. Not
withstanding,' says the report, the doubt
entertained as to whether the act of 1896
conferred the power upon the board of
public works to sell the stock of the board,
consisting of Gov. Smith, DR.. j. w. Herring
N a W q a l.
rectors deemed it wise to dispose of the
states interest provided always the proper
amount could be realized. Therefore the
tentative offers made by the Baltimore and
Ohio officials were considered and all data
possible to determine the value of the
states holdings were sought.
I'VE held frequent consultations with
the board of public works and the then
attorney general, resulting in unanimous
opinion that the tentative offer of $500
share was far below the value of the states
stock, and that it would not be possible
for the state to receive fair compensd-
! ton for its interest, if advertised and sold
to the highest bidder, for the reason that
! the Baltimore and Ohio would be the only
party having full knowledge of the full
value of the property.
A B. and o. Special Committee.
Further action looking to the sale was
postponed until such information could be
obtained. The Baltimore and Ohio appoint
ed special committee, consisting of Mr..
Loree Mr.. Steele and MFR. German, direc-
tors, to consider the payment of a dividend,
with the understanding that the committee
would take into consideration the entire
question of the possible Indebtedness of the
Washington branch growing out of the new
terminal facilities in Washington.
THAT committee" says the report, never
acted upon the matter nor were the data
necessary for the consideration of the ques-
ton furnished.
In the meantime Oscar G. Murray was
elected president and Mr.. German wrote
him, pressing the consideration of the ques-
ton of a dividend. and also asking full in
formation. No action having been taken
by President Murray and five months hav-
ing elapsed Mr.. German wrote him again
insisting that the informant ton be furnished.