New Ulm weekly review., 1878-07-17
vANDERBILT'S EMPIRE.

1t Has Been Ectended So as to Include the
Michigaa Central RailrOad-The -4i,,ss
of the Railroad POtes,t0te.
Detroit Special (June 24) to Chicago Times
The annual meeting of the Michigan Cen
| tral railroad, which was held here to-day,
resulted, as was generally expected, in a
Vanderbilt victory, and the road is now his
own as much as the New York Central or
the Lake Shore & Michigan Southern. He
holds majority of the stock himself, and
he can, therefore, do as he pleases with the
property. Mr.. w. 81. Vanderbilt was pres
ent at the meeting and personally directed
the operations. He had with him as aides
and adjutants his two sons, William K. and
Cornelius; Augustus Schell, director of the
New York Central and Lake shore; j. Til
linghast, president of the Canada Southern;
John Newell, general manager of the Lake
Shore & Michigan Southern; E. D. Worces-
ter, treasurer and secretary of the New York
Central and Lake Shore & Michigan South
ern; Webster Wagner, manager of Wander
bilt's sleepingcar lines; Capt. J. H. Wander
bilt, brother of the departed Commodore;
and several others. Of the opposition, none
of the prominent members except Mr.. 4. G.
Rolston, secretary of the Michigan Central,
and j. F. Joy, were present, and they were
all sufficient, for Vanderbilt had everything
so neatly arranged that if no one of the old
management had been present it would have
been Just as well. After the meeting had
been organized by the election of Mr..
Augustus Schell, the voting commenced.
The Vanderbilt interest placed their proxies
in one hat and the Sloan interest in another.
The Sloan hat filled VI very rapidly, and, to
the uninitiated one, it seemed to be sure
indication of Vanderbilt's defeat. But that
gentleman remained serene throughout,
knowing that he had them dead sure.
When the hats were turned over the fact
was revealed that Vanderbilt's side had 3d.
665 votes, electing as the new board Messrs.
William H. Vanderbilt, Augustus Schell,
William K. Vanderbilt, Anson Stager, w.
Ashley Pond, of Detroit. The old board,
composed of Samuel Sloan, Moses Taylor,
George F. Talman, John j. Astor, Isaac Bell,
r. G.. Rolston, Nathaniel Thayer, Edward
Austin, and j. V. Barrer, received but 3D.
l24.
This revolution was not brought about be-
cause the stockholders were dissatisfied with
the old management, or because they be-
lieved that they would fare better if Wander
bilt had control of the road. On the con-
trary, the fact was that some 900 sharehold-
ers, representing 53,125 shares, voted for the
old board, while only about 100 sharehold-
ers. representing 1866 shares, voted for
the Vanderbilt party. No one has any con-
fdence in Vanderbilt, and his getting con-
troll of this property is generally considered
misfortune. Vanderbilt needed this road
to carry out his scheme to control the whole
railroad system east of Chicago, and dictate
| such terms as he shall choose. He went
into the open market and purchased out
right $4,000 shares of Michigan Central
stock. The other 10000, which were voted
! for him, were purchased and owned by his
friends. The fight for the control of this
road commenced two years ago, and Wander
bilt would have obtained control last year
had he only felt his way sure. But some
difficulties in regard to the control of the
Canada Southern had to be overcome first.
Your correspondent came into the posses
sion of facts yesterday which show con-
clusively what Vanderbilt aims at, and what
his intentions are. The facts are that some
years ago Messrs. Daniel Drew, w. L. Scott,
Jay Gould, and others held a controlling in
terest in the Canada Southern. When they
purchased it, it was their intention to use it
as through connection with the Erie. They
were not successful, however, and the plan
was then conceived to go into partnership
with old Commodore Vanderbilt, who, they
believed, could make it paying property.
They presented him with half of the stock
on condition that he guaranteed the balance.
He accepted the bait, and afterwards bought
$4,000 more of this stock, giving him un-
disputed control. When the old Com
| 1io1 %hio foI
the rest by William III. It was an unpro-
ftable piece of property, and the bondhold-
ers wanted Vanderbilt to guarantee their
bonds, as first agreed. Vanderbilt proposed
to do so if the debt and interest were re-
duced to figures more adequately represent
ing present values. A majority of bond
holders accepted, but the scheme could not
be carried out unless the Canadian parlia-
ment passed an act approving it. The bill
:. was introduced, and it is asserted that Van
derbilt paid certain member of the parlia-
ment the sum of $4,000 for lobbying the
4 bill through. How much more he paid is
not known. The Grand Trunk and Great
1 Western managers did their best to defeat
the scheme, knowing that it would enable
/ Vanderbilt to crush them, but Vanderbilt's s
/. gold was too powerful with the Canadian
legislators, and the bill becamea law. This
enabled Vanderbilt to secure full possession
of the Canada Southern, and put him into a
position to scoop in the Michigan Central,
which he could not have done if the bill in
regard to the Canada Southern had not been
passed. The money with which Vanderbilt
4 purchased the Michigan Central was bor-
rowed by him in Europe year ago. He
went to Europe againa short time ago, and
i It is claimed on good authority that this time
he made the trip for similar purpose,
namely. to borrow $8,OOO,O 600. He sue