The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-05-30
WILLARD ADMITS B. & 0. SPENT
$23,OOO,OO0 ON BANKRUPT ROAD
Railroad Also Stands Sponsor To-day for $5O,OOOOO0
Worth of Obligations of the c., H. & d.
System 1t Acquired.

may zS.-BTeSlOent Dhu-
lei Willard OF the Baltimore and Ohio
Railroad Company was on the witness
stand all day in the investigation which
the Interstate Commerce Commission has
begun into the financial relations between
that railroad and the Cincinnati, Hamil-
ton and Dayton
The commission has undertaken this in
curry In connection with the advanced
rate case to determine whether the rels-
tonship between the Baltimore and Ohio
aud the Cincinnati. Hamilton and Dayton
II at all responsible for the need of addi-
tional revenue for the former road.
In the course of to-day's hearing Louis
d. Brandeis. counsel for the commission.
contended that the situation of the Bal
timore and Ohio at present was "precari-
Gus" and that prudent fnanciering would
indicate that the board of directors should
IT declared dividends.
Mr.. Willard would not agree to this,
but admitted that Developments had
shown that the acquisition Of the Cincin-
natl, Hamilton and Dayton Railroad by
the Baltimore and Ohio Railroad, in view
OF developments. was unwise.
The examination also developed that
tnf NuiO Noh-
pany. when 1t took over the Cincinnati,
Hamilton and Dayton Railroad. seemed
also to take over rs guarantor s9,2OO.OoO
worth of bonds which the Cincinnati.
Hamilton and Dayton had guaranteed for
the Pcre Marquette Railroad.
Fight Likely over Bonds.
This apparently was not known by the
negotlators on behalf Of the Baltimore
4 D..I ~ lpaa
OF the purchase. and Mr.. Willard init
mated that there would be litigation over
these $4,000. 900 bonds.
1t also developed to-day from Presi-
dent Wizards testimony that the direc-
tors of the Baltimore and Ohio Railroad
Company have appointed IA special com
mittee to look into the financial relation
ship between the Baltimore and Ohio
and the Cincinnati. Hamilton and Dayton
and that the subject OF future dividends
OF the Baltimore and Ohio Railroad Com
pany might depend on the nature OF the
report of this important committee.
Mr.. Brandeis got from Mr.. Willard that
since Mr.. Willard had been president. be-
ginning in 1910. the Baltimore and Ohio
Railroad Company had raised sSl,o0O,O 900
| and that SEQ. 500. 900 OF this had been sp MT
on the Cincinnati. Hamilton and Dayton.
Mr.. Brandeis also brought out that In
! the advance rate case there were no fig
uTtS given Wy Nir poihihi'iN NV
Railroad Company to indicate that this
| money had been spent on the G.. VI. 4
u. and that II was carried on the books
| OF the Baltimore and Ohio Railroad Com
| pany under the headlng Hecuri',eS
owned. unpedged and miscellaneous in
| vestments.
~
| sp""s"r LOT ~"V'"""'""
| Mr. Brandeiss figures showed that the
Baltimore and ohio had advanced in cash
| up to July /. 1913. s23.600. 900 to the Gin
cinnati, Hamilton and Dayton. had guar
tions and that 1t stands sponsor to-day for
o' sovVVv 49,, a., ,ha, a. c,Ino,,.
| IL $500, "a re, haa n, dofc,,
"''. m - -. Snsoro ,ho r,I,,.
~, -, wv ohio oy,,araa into contrar,
lei lei ,ynro,n q 90 Tor ACQUIRING n
~, has had n dsticit ever
-, - rt,o aae,,, for tho ton month,
aaaas ALL m loo, 10 annroyImated a,
.,'. ~ 20 oon ona ard "a ooo 900
Mr. grandeis declared that the Clncln
,.,i uaniiton and Dayton was not earn
| ,."t'' ',',, ~, 49,, ,n,.rost on to under
ing enousn " h'y 81 ,ha Ra,t,,nor,
anu D'o ~, hands -, recoiv.rs n,
KEPT u ou' Vi '"' MANN" Va
oankrup'cy' ,,.u,o. o,.o ,o,r,h, nv
iresiue". ~, 90, ,I 49,.
amlna.oh py mr, .,or LIE. ,as,,,n On th,
par, OF t'e op,'s 'I w" ~. ~, o.
na',iii,or' a''u M ,Y,,, ~ NO.,
tnat tne .nI,!'na', IT. -. na,, rrs
Ton hau poush' at o"e ''"'' ''' wv" PIC
ferred STOCK. ,., ,,,
IL appeared that ,he cincinnati. ila, ,,,
ton ana Dayton u,o tI,s a. an ,ao,'
ture OF s',oo'ooo VI o,"eI 70 uu'.s s'o ",'.
hoioers' WIZ plo'e . -
cinnati' hhhiito" anu 80 10 . a. a.,
teeing the BOND issue OF ss,EVnVoo Oh III
Pere Marquette. both OF wh'ch were u
the "a""' VI
Erie HeJecteo Property
Mr.. wizard gave aetaneu account
how the Baltimore ana ONO haIIroa
Company acquired the cincinnati Hanii'
ton and Dayton ana us opiisatiohs are
the Erie railroad COMPANY nau reJso .e
II. The Erie arter an examination, OF IN
G., II. ana ID. contracts ana ophsaton
, rejected II. apparently through the ihsis'
ence OF the late w. ~: Hartman,
SoW' " .. No. J,,na =,
taking the properly was June o.
1909 before inc bait',os anu o',o 'o .,
1t over. tho properly sno"eo d uenei ~ 40 =
! operations or that year OF Sl'osi'oVo :
Yes, SIR assented MT wizard.
Mr.. brandeis reierreo 10 oeta's' a
legged indepteahess o, ,ne =. ~; -
ana Mr. W,I.sn nno aS IL N,n.nuot,a hond
IN ,'Sa,s said be did and then NJ
Mr.; Brandeis sald nc aiI, s anu ho ,m' ha
i