The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-01-05


ms stock freely in order that deliveries might
be made. Thus he would continue TO buy the
none other in The ann market ali % The hsts timer rpad' pse
ally forcing the price up In the face OF the in-
creaslng bear interst.
This process went on until he had actually
Dougnt third more stock than the entire vol
, nme issued he had made Large, profits by loan
up TO 2s5, and had the whole market Indebted
to him.. Then he suddenly shut down on loans,
ana called Tor the delivery of all stock due him.
VI course there was none to deliver He had
the street at his mercy and could demand set
Elements at his own figures. IL was not his in
ceres, cf n TO break the market or precptate nan.
fE 4iyf#SSSe "s3f5 %tG }G Siss%i fsSS's d a,
greEato realized not less than s5Qg0,OOO profits
,ny the operation. And instead Of The price fall
,hg ,h ne had forced II up, despite the action Of
from mat time to the present tho controlling
interest IN that company has remained in the
Cominodore's hands, aud he has managed IL as a
piece ni personal property In which nobody but
himself had any interest.
HIS CAPTURE or HUDSON RIVER AND CENTRAL.
Immediately after this great success in IIar-
rem rem Stock the Commodore began buying Hud-
son hivor, and soon held scrip or proxies repre-
scnting q controlling interest. The road had
been been well MANAGED, but had not paid large dv-
uenus on account of steamboat competition.
~ hnu also been under the thumb Of the New
Vanderbilt had the sacacity TO see that in the
winter months, when the Hudson was closed to
steatnboat NAVIGATION, the great and powerful
New YORK Central was wholly at the mercy Of
the Hudson River Railroad. He, therefore, in
the fall' while the steamboats, were stll running.
proposed to Dean Richmond, Erastus Corning.
ana tnauncey Nibbard, the magnates of the
Central, an alliance as against the steamboats,.
Those gentlemen were afraid Of the influence
such an arrangement would bring against them,
ana derlined the proposition.
vanderbilt manifested no disappointment at
,nis t, refusal, ana continued to run his road as
could get in rivalry with the steamboats,. But
as as soon as The Ice shut up the river he showed
his hand. His trains which had formerly been
held at Albany to wait the arrival OF the trains
from the West over the Central were now started
on their schedule time. and even II the connect
ing trains from the West happened to be enter
ing the depot when the time for starting ar
rived. they were not allowed to wait The re-
suit was very material falling OF Of travel over
the line. The development Of this result brought
the Central people to terms, and the desired
alliance was made.
Just at this time the death OF Dean Richmond
left the New York Central without President.
vanderbilt was not then even stakeholder to
natural successor to Mr.. Richmond. In order to
place him Ia the vacant chair large number of
heavy stoekholders voluntarily sent him their
proxies. Dy these means and by purchases OF
MS own he obtained control Of the road, which
NJ ns at once promptly assumed and has since held;
about ssOWOO0o, and soon after assuming the
management II the line MIR. Vanderbilt was
credited with the ahsolgtc ownership Of little
more than one-half OF IL.
The consolidation OF the Hudson River and
New YORK Central companies was the next stroke
of enterprise of this wonderful operator. After
considerable opposition the measure was effect
ed. II was followed by the construction Of the
Grand Central depot In this city the lease to the
consolidated company Of the Harlem road I;
the building Of the short line along the
Harlem river by which the Hudson River road
reaches the tracks Of the Harlem company. and
other improvements that have rendered this
great highway the finest property on the conti-
ncnt In lSi3lts enterprising manager negotiat ed
loan OF Sin.ibnVn on its credit. and proceeded
I" increase its capacity for business by laying
-FOUR tracks Throughout it, entire lersth prac-
tl,ally making II capable OF doing an unll nit
ed business.
THE cOMMoDoREs PUSH FOR CHICAGO.
manacsmen Of Messrs. Eldridge. Drew, Gould
aud others, entered into negotiation with the
Lake Shore and Michigan Southern for "A third
rail on the latter line To accommodate the broad
gauge cars of the Erie. and give them an un-
broken connection with Chicago. Vanderbilt
saw in this scheme the germ Of formidable
rivalry To- the New York Central and resolved to
hehu ~ on 10y securing control of the Erie line
~ that time the Ere Company had out about
Sld,rr,Op of common stock. with his usual
secrecy the Commodore began buying at about
., through his agents, and managed to acquire
sl0OO,oJ of the stock. Surprising he had A
majority, he began 10 demand deliyerc,. Then
cam" one of the most exciting contests ever
witnessed IN the stock market. The Eldridec-
prcw-Gould combination. resolving to hold the
ROAD NJ al hazards, proceeded To- iS.ue a large
amount Of convertible bonds that is, bonds
converihle AZ the holders option into common
stock and To convert them At once Thus The
capital stock was actually increased 10y about
SlO,n.NN, and by this Unauthorized issue Van
derbilt was kept out Of the control OF the road.
hold in the courts, the directors fed To Jersey
uity, and intrenched themselves in .Taylors
The Commodore Immediately Instituted anti
from which the Erie men were glad to escape by
a compromise; but Vanderbilt had failed To cap
Then he turned his attention to the Lake shore
and Michigan southern and by means Of one ~
a III
ed Fisk Gould, acquired about .OeO shares of
stock and the absolute control of the road. and
found himself gamer 10y the raid by probably
not less than Sl0o1Ou.
Having acquired Lake Shore, the Commodore
cost OF about s7,5lo,0D He made his son-ln-law,
Mr. Horace !. Clark President. Messrs. Angus
tvs schell and James II Banker were among the
directors, and with the President con n.ttuted
oo made to the railroad by the Union Trust
Company, of which Mr.. schell was acting Presi-
dent, the failure Of the Union Trust Company In
the panic Of 1s13 the death OF MIR. Clark, and the
repayment of the sl,150,OU by Vanderbilt, cna-
bling the company 10 resume business. are
events so recent that they hardly need recountal
. Ever since ls13 the Lake Shore and Michigan
control. and has been operated by him in con-
junction with the Hudson River and New York
Central, as one continuous road. the extent Of
which, exclusive Of branches and side lines, Is
Ms miles, all of which Is now double tracked. a
part Of II laid with four tracks with steel rails
covering the whole. Adding to this the Harlem
rohd now undur lease to the Central. and the
side lines and branches under the Commodore.
control, we have an aggregate of It's miles uf
continuous road subject To this one manage
ment, and all operated as one line.
Excepting the Pennsylvania Railroad this
great line Is the most extensive ON the cOnti-
ncnt. II not in the world, under one manage
mont; and = earnings make II the most Nllu-
able railroad property I'm existence. II repre-
sents an aggregate capital of Slia,UhUNu, u
which Cornelius Vanderbilt and his family were
said To- own more than half, and "A bonded In
of SlG0oO,U1.
The COmmOdurc'- I~r-OnaI Habits. Chnrnc-