Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-03-20

charge is "a gratuftous insult"
The whole question at issue between the
Baltimore and Ohio Railroad Company and
the state of Maryland seems to be In very
much the same condition that it was be-
fore the appointment of the Joint commit
tee to investigate the matter more than
month ago. The committee has been at
work since February -. and while il has
gotten hold of a lot of figures, the whole
business has been handled in such a way
that it is impossible to discover what is
the real value of the work or whether 1t
is of any value.
Railroad Officers Not Heard.
The higher officials of the Baltimore and
Ohio Company have not been examined
and there seems to have been fear on the
part of the committee that something
might be discovered that ought to be kept
secret The questions which many people
here think ought to have been asked have
been carefully ignored, and nothing has
been discovered which was not known be-
fore Either the railway officials have
scared the committee or else the members
are afraid that if they go too far they may
uncover something which will reflect on the
state directors, who are Senator German
and Gen. L. V. Baughman. The committee
VIII meet again this afternoon to complete
itS report. and some of the members saw
that ching red hot NAV happen hut
no one believes it.
President Murray's Letter.
Mr.. Murray in his letter to the board of
public works of Maryland dated yesterday.
and replying to the charge of stock manfp-
ulation made In the report of the investi-
eating committee, says in part:
Gentlemen: l have received through
Mr.. Bond your request that the Baltimore
and Ohio Railroad Company make an offer
for the holdings Of the state of Maryland in
hroy,
states that, from the evidence thus far
taken your committee all agree upon the
following conclusions
First, that In the division of revenues
with the Washington branch the Baltimore
and Ohio railroad has caused great loss to
the state as owner of one-third of the stock
of the branch.
This conclusion is directly contrary to the
only testimony taken on the subject, that
of Capt. c. w. Booth, assistant controller,
which Is that the method of division has
been extremely favorable to the branch,
and which is confirmed by what the re-
port itself calls the highly gratifying fig
ures of 1908, 1904 and 1905
Second. That the action of the president
and directors in suspendng dividends on
the Washington branch stock from 1897 to
1903, inclusive, cannot successfully be de-
Tended or excused as the pretended bona
fide exercise of a sound, reasonable and
honest discretion
This conclusion is in the total absence
of all testimony or attempted explanation
as to how the Washington branch could
have met the expenditures required by the
legislation of Congress, except by accumu-
lating earnings
Third. That the action of the president
and directors of the railroad company, In
deliberately depreciating the value of the
stock OF the Washington branch by the per-
sistent omission for many years to declare
dividends, while during the same time they
were steadily buying all the shares OF the
stock held by individual owners which they
could acquire, demonstrates that the ex-
cuse given for Withholding dividends is dis
ingenious and insincere."
Gratuitous Insult.
mo testimony has been taken as 10 the
circumstances Of these purchases. They
were made pursuant to an agreement be-
tween counsel for the company and coun-
sci for certain stockholders, under which
the same price $500 per share) was made
open to acceptance by any stockholder, IN
Guiding the state of Maryland The agree
ment was made after full disclosure OF
every fact that the persons concerned and
their counsel wished 10 know The reputed
authors of this report had knowledge OF
these circumstances. The third conclusion
Is gratuitouS insult 10 the officers and dH
rectors of the railroad company, without
any foundation in fact.
'Fourth. That the openly aVOWed purpose
of the Baltimore and Ohio Railroad Com
pany 10 deny to the Washington branch
all participation in the terminal company
notwithstanding the appropriation OF 81
S44,3Si of the funds of the Washington
branch in the construction of the coach
yard roundhouse and shops, is unjust and
lndefensible. and should be resisted Vigor-
ously by the state by appropriate action
in the courts
means simply buying at par that company's
STOCK, which can pay only per cent
Washington branch traffic has exactly the
same use or the Terminal Companys ia
ha at..
the branch owns stock or not. There is no
charter power to invest Washington branch
money In the stock of the Terminal Com
pany. 1t seems incredible that anv one
could, in good faith revive this exploded
Table about the denial of participa tion In
the Terminal Company
sixth The sixth conclusion seems TO
assert that, having acquired property hv
the expenditure of 81 ,s44 3S4 the IVasbine
ton branch should pay the same money ofit
as dividends No evidence has been pro-
oueed TO snow how this can be done
Suppression of Facts.
Tie report is noteworthy as well for its
suppression of pertinent facts as for ne
misstatements. The legislature and the
public are left to infer that all knowledge
of Washington branch affairs has been
withheld from the states officers and rem
fesentatlves. No mention is made even of
the fact that the expenditures within the
District of Columbia were approved in 1908
by the separate votes of each of the states
directors, Messrs. A. =. German, ST. and
l. Victor Baughman, and by the vote OF
all of the states stock, under the authority
of the then board of public works.
MI Bond tells me that at the meeting of
your honorable board on Saturday last the
members of the subcommittee there pres
ent, with one exception, dfsclaimed all re-
sponsfbllity for the document published as
their report as did also the attorney gem
eral and ex-Mayor Hayes; and that the
chairman OF the committee stated that the |