Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-06-28
yANDERBILT'S EMPIRE.

yANDERBILT's EMPIRE.
1T Has Been Extended So as to Include the
Michigan Central RaiLrOad-7he Afms
Of the Railroad POtentnte.
Detroit Special Dune 24) to Chicago Times
The annual meeting of the Michigan Cen
trail railroad, which was held here to-day,
resulted, as was generally expected, in
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. II. 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 g. Michigan South
bits sleeping car lines; Capt. j. H. Wander
and several others. Of the opposition, none
of the prominent members except Mr.. r. G.
Rolston, secretary of the Michigan Central,
and j. F. Joy, were present, and they we're
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 we'll. 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 up 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,
Cornelius Vanderbilt, Samuel F. Barger,
William X. Vanderbilt, Arson Stager, W..
L. Scott, Z. d. Worcester, of New York, and
Ashley Pond, of Detroit The old board,
! composed of Samuel Sloan, Noses Taylor,
George F. Talman, John j. Aston, Isaac Bell,
r. G. Rolston, Nathaniel Thayer, Edward
| Austin, and J. v Barrier, received but 54,-
1874.
This revolution was not brought about be-
cause the stockholders we're dissatisfied with
the old management, or because they be-
| ieved 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 So, 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-
l l. 1,Tc
troll Of this property is generally considered
a 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 veal
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 VIVA
his intentions are. The facts are that som,
years ago Messrs. Daniel Drew, w. L. Scott
Jay Gould, and others held a controlling in
terest in the Canada Southern. When the,
purchased it, it was their intention to use i
as through connection with the Erie. The,
were not successful, however, and the plal
was then conceived to go into partnership
with old Commodore Vanderbilt, who, the!
believed, could make it a paying property
, They presented him with half of the stoc
on condition that he guaranteed the balance
, He accepted the bait, and afterwards bough
$4,000 more of this stock, giving him un
, disputed CONTROL When the old Com
t modore died this property was inherited wit
, the rest by William II. It was an unpro
!, fitable piece of property, and the bondhold
ers wanted Vanderbilt to guarantee thei
bonds, as first agreed. Vanderbilt propose
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 nc
be carried out unless the Canadian parlis
ment passed an act approving it. The hi
e was introduced, and it is asserted that Var
Q derbilt paid certain member of the parlit
y ment the sum of $4,000 for lobbying til
bill through. How much more he paid
not known. The Grand Trunk and Gre,
u Western managers did their best to defe,
y the scheme, knowing that it would enab
o Vanderbilt to crush them, but Vanderbilt
q gold was too powerful with the Canada
Legislators, and the bill became law. Th
. enabled Vanderbilt to secure full possessio
a of the Canada Southern, and put him into
IS position to scoop inthe Michigan Contra
# which he could not have done if the bill
! regard to the Canada Southern had not bee
passed. The money with which Vanderbi
Is / %la L
3, rowed by him in Europe year ago. f
s. went to Europe again short time ago, az
!. it is claimed on good authority that this tin
;, he made the trip for similar purposes
= namely, to borrow $s,OOO,OOO. He su
y ceeded in his mission, and with this none
le it is said he will purchase the Great WEBSTER
J. of Canada and the Detroit & Milwauk
,e railroads. It is positively asserted that
- has now virtually control of the latter. Wi
the Great Western in his possession, he b
= the Grand Trunk completely in his powe
20 and that road cannot be anything but loo
K road, having no Western outlet whateve
It Jay Gould is undoubtedly aiding Vanderbi
!, in consideration of not being interfered wi
;. in his scheme to control all the connectio
and rivals of the Union Pacific. Mr.. Va
d derbilt has been interviewed regarding b
to schemes, but his answers are evasive. al
4. indicate nothing. Yet he does not conct
n his hatred towards the Crank Trunk, a
" says he will crush 1t if it does not maints
the rates Shat is, if it does not abide by
Is dictation. The officers elected to-day are
ge follows: President, w. 81. Vanderbi
ic treasurer, Cornelius Vanderbilt; zzsecreta
- E. D. Worcester; executive committee,
- H. Vanderbilt, Augustus Schell, Cornell
L Vanderbilt, Samuel F. Barger. No acti
re was taken respecting the working officials
~ the road, that subject being left for fut,
in consideration. Vanderbilt and party lea