New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-08-14
THE HARLEM CORNER.


OF lis EARLY DIFFICULTIES.
There seems TO be no end to the versions OIL the
Harlem Corner" and Commodore NanderDllts part
therein Each of the many sufferers mas a ulieie".
story TO tell The latest is by former treasurer VI
one of the roads of the Vanderbilt combination VINO
was particularly familiar with the management OF
the Harlem during the period in which the Com'no-
dore captured it, The following IS his statement 10
THE TRIBUNE: :,
Although as holder of its stock and bonds MI
Vanderbilt had had an interest in the Harlem Rail-
road Company for some years it was not untli lsoI
that he was made director along with D&hel
Drew. For two or three years the company haa
becn struggling under lead of delt. By means OF
teUporary loans from banks secured by deposit OF
its first mortgage bonds and by the sale OF its own
notes in WaIl-st floating debt of over million OF
dollars had been carried, hut - very eAorpi'an'
rates 1t was thought that the names ana i:iue9!Ne
of Vanderbilt and Drew would secure the confidence
of monevad men and make easier the man
agement of the finances. Vanderbilt under
stood perfectly the purpose Of his election ana
although officially informed thereof, kept away from
the meetings of the board. At last, being waited
upon by some OF the directors his views and ex-
pectations were made known. He had purchased
from the Schuyers some time previous, SlOoOoo0 OF
the companys first mortgage bonds which, although
mid for lie had not yet received when the tm
failed Ue considered the Schuylcrs rs merely the
agents of the company, SD instituted sult against
the corporation the cost OF the bonds lie
would not consent to identify hIi;sSf with the com
pany until this uGSatisfied claim was rec&Gplzcd as
valid and unless bonds for Sl00Oo0 were Gc.lFfled
to him. This was done. The question then arose IN
what way would his name and influence be made
available. 1t was agreed that notes of the company
should be issued for sale in Wall-st. having the IN
dorsements of both Vanderbilt and Drew. Tor
which each was to receive commission.
For time these obligations were in demand nj
slightly above legal interest. Bat as The failures
and suspensions Of that memorable year began 10
increase in number, the rates began to be aicc;eo'
and at last the notes, notwithstanding the ini'rse-
ments became unstable except at an enormous
discount.
"How do you account for thsY" was the question
asked of old John Ward at whose Office thc ho'eS
were left for sale
Why said the old gentleman, every one
knows that no consideration was given for this pa
per- and that should the company fail the lndoTS'is
would certainly plead that to avoid paying 1t them
selves"
As every week added to the difficulties of the
company and it's PRINCIPAL dependence for money
being on The negotiation of this paper tho Only re-
sort left to its financial officers was an appeal 10
Vanderbilt himself to loan the money on The noteS
first mortgage bonds Of the company al low price
as collateral security. This the Commodore did
through Mr.. Torrance, at that time his agent m
charge of his steamboat and other Interests
After the ARRANGEMENT with Vanderbilt and Drew
had been in operation some months, the latter n
meeting of the board formally announced ms deter
nipatioD 10 Withdraw from it, receiving from the
Commodore very promptly the Information 'haI Ne
was add fool The Suspension Of the banks III
"a, nd tha oouerll Ioubt which prevailed
resaecting all corporations rendered it more and
more difficult for tic Harlem Company to meet ITS
ENGAGEMENTS. On the Is. Of November six months
interest on the 6rst mortgage bonds was to be paa'
and failure to meet the demand would inevitably
involve the suspension Of The company MI Enaneli
cxpeGients seemed fruitiess, but at last an appear
IN Vspde,l,ih was succ ssfui and through him
the requisite amount was secured at Ut was then u-
derstood, abont i've per cent per month. The cou-
mons were paid the credit of the company was for the
time preserved ard shortly after, by the successful
negotiation of second mortgage bonds, comparative
ease was attained. Although tie interests he had
az stake might not have been supposed sufficient to
have walked all his energies 10 sustain the Harlem
COMPANY at tie time referred TO, yet, something
else was necessary, IL cannot be DOUBTED that the
high rates OF interest submitted to were "'sc az
subsequent results have proved In 1857 TIE stoc"
was selling as low as per cent, and the first mort
former is now held at 1873 per cent and the latter at
121 per cent the resurrection" of the company
being mainly due TO Commodore Vanderbilt, what
ever may be though. Of the means used.
IL wac stated come days ago that the CommodOTcs
investments in Harlem securities were so large that
he Lad had his bonds bound into books il Is sup
posed that reference was made to $4oo,UOO Oi
the second mortgage bonds, which, when issued were
bonnd in volumes Of hundred bonds each, for the
convenience OF TIC officer who were 20 sign them
On one occasion whcn the Commodore was COM
poininc Of the trouble cEtailed upon him or has
clerks by having TO unfold and fold again so many
bonds when cutting Off the coupons, the treasurer
suggested to him that ha might take mis- four hund
red bonds in the original boOks an idea which he
gladly appropriated; for fow, if any. millionaircs
coald say they had books worth 100000 per
volume.
As is well known, the C0mnodore's literary at
taiuments were not remarkably great. His letters
were generally dictated as to substance hrs alnanu
cnsis being intrusted with the niirportant details
of orthography, punctuation, and grammatical con-
stfuct;oD.
TIE -C0MMODORE'S LOVE OF HORSES.
MS DRIVING r. HARLEM-LANE AND AT SARATOGA
SOME OF ais BEsT uOPsEs AND HIS TREATMENT
OF THEM.
A pleasant sketch from Saratoga a few days
20 reprcsentcd Commodore Vanderbilt at Whist As
rjesant ui,re ilit he made Of bin tie road for
bis todness and 70, fast driving was 10 great
AZ for te quiet relaxation or Whist Harlem lane,
WHOM il was the lane saw him almost daily since II be-
came respectable and ruined g. NcholaSavc be has
not often been lcss, however because 81 !ndisosi-
.iou OF ind than indisposton OF body Re always
very fast driver aud :eW others thar Robe. iionner