The New York herald., 1879-07-07
RAILROAD COMBINATION.

WHY MR.. VANDERBILT PURCHASED THE CON-
TRoL OF THE TROY AND BOSTON RAILROAD
THE HoosAc TUNNEL ROUTE TO THE WEST.
IBy TELEGRAPH TO THE HERALD
Troy, N. Y, July G. 1879.
The Hoosac Tunnel has suddenly assumed posi-
ton of Importance channel for railroads TO
the Eastern States. During the past years
it's value has been steadily increasing and the aug
mented traffic through it has shown that the
Bay State would sooner or later realize something
from the outlay of S170c0.O0O which was in
vested in the great boring venture. 1t seems that
several prominent railroad magnates have been
quietly noting the possibilities Of the tunnel and
laying plans that it was hoped would bring to each
share in this dark gateway to Massachusetts,.
These persons have been. according late develop
ments, Mr.. William II. Vanderbilt. MIR. Tom Scott.
Mr. Thomas Dickson. the Erie manager, and party
Of Boston capitalists. headed by General William l..
Burt. ex-Postmaster of that city. The Burt faction
consulted with the Erie and Delaware and Hudson
Canal Company. when it proposed to the
Albany and Susquehanna Branch from Binghamton
to Schenectady. then build from there to the
Massachusetts, and Vermont State line.
HOW CAPITAL WORKS.
This work was proceeded with and the new cor
poration appeared under the name Of the Boston,
Hoosac Tunnel and Western Railway The COM
road. including eight bridges and have their line
completed. excepting two miles, with rails laid and
waiting for ballast reaching from the Delaware and
Hudson connection direct to the Hoosac Tunnel;
but these people deferred by serious hindrance
in lack OF the right Of way to the Troy and
Boston track, which is now controlled by Mr.. Van
derbilt These details comprise the interest of the
Erie in this matter. The Bostonians who allies
of the Erie. arc moro deeply involved. having ex-
pended 50, 100000 in construction and rolling stock
besides having started railroad from Boston to the
eastern terminus of the State track. which extends
from the Vermont State line and through the tunnel
and eastward to Greenfield. This will be called the
Massachusetts Central Railroad. These Bostonians
headed by the Ames Brothers and seem to have
plenty of funds, paying all bills in cash and issuing
no stock yet. Mr.. vanderbilt's presence in this
controversy has been caused by this quiet
project Of the Erie To permit the latter
to reach the tunnel would be to take
from the New York Central portion of the traffic
that now aggregates 500 loads per diem. besides
giving opposition passenger route to Boston.
hence it could scarcely be expected that the New
York Central king would slunber while this plan
matured. AT present all this business comes from
the lakes and Buffalo the only tourtrack route,
thence further East via the Boston and Albany or
Troy and Boston roads, There is plenty of traffic
to keep both routes busy at profitable rate. -Four
months ago the Troy and Greenfield Railroad Com
the Hoosac Tunnel from the State. This corpora
ton first started the bore. but abandoned it after
spending $4,000, ,000 bankrupting the stockholders
and getting but one-quarter of the way
W. ii. VANDERBILT IN THE FIELD.
Though the States finances finished the job when
the Troy and Greenfield road sought to have the tun
mel turned to them it was at once seen that Mr.
Vanderbilt had thus at one master stroke attempted
to sweep the whole board clean and get control of
the tunnel. This the Burt and Anes party defeated
in the courts. enlisting also the sympathies and
operaton OF the Board Trade at the State capital
The asst
to buy up the Troy and Boston Rail
total loss before the tunnel gave it significance and
Mr. Vanderbilt transferred to it his patronage Last
Thursday this gentleman paid cash for 25o0 shares
yiously obtained 600 of these shares. This
done so that notice would be taken OF her
Scheu also procured O0O while Mr.. Vanderbilt per-
sonally held similar amount. making in all $500
shares that he had under positive control
A
Mr.. Daniel Robinson has heretofore been tho
ager OF this road and holds about two thousand
shares 1t was agreed that If Mr.. Vanderbilt would
buy the last $500 shares at fifty per cent instead of
twenty-five the previously quoted rate, that three
fourths of the other stock would be pledged to his
spport dictation. paper having been circulated
to that effect and signed by enough to allow Mr.. VAN
derblt to control hreequarters OF the votes OF the
stockholders. his name has been put up as presi-
dent OF the road in place OF Mr.. d. Thomas Vail.
An appointee of Mr. Vanderbits will hereafter
This transfer gives the New York Central people
fortyeight miles further of road toward Boston and
Boston and Albany, besides giving them nine points
of possession with which to combat the Erie and the
Boston people.
THE COAL INTEREsTs
The Delaware and Hudson Canal Company are
strongly interested in the completion of the Erie
outlet east because it would give the former val
uable channel to send coal from their mines direct
to New England, and which other company
Joys This would prove valuable desideratum in
deed and President Dickson very hopefully referred
to it in his last annual report But to complete their
hopes in this direction and foster the Eries
project, the Delaware and Hudson managers
their Saratoga division. which now comes the
Vanderbilt lines from the West East aud South will
be jeopardizod because the latter has threatened III
case Mr. Dickson does not withdraw his aid from the
struct an independent route from Schenectady to
Saratoga and take all the summer travel from the
Rensselaer, and Saratoga Railroad now leased by the
Delaware and Huason Canal Company. Thus
needed by those against whom they di-
rected. Last spring Mr.. Westcott, manager of
the Hoosac Tunnel was displaced and Mr. Gard
ner appointed instead 1t was believed that
a for the Pennsylvania Central road to the tun
mel. Whatever may be tho outgrowth of this
petition the Massachusetts Treasury will be bene
fitted, and the greatest drain the public finances
be rendered selt-sustaining IL not profitable Tho
State owns the tunnel now and will undoubtedly en-
courage all for the thereof
because rentals must swell the income.
The State has already appropriated $170.0O0
Eries route. hence Mr.. W. Ii. Vanderbilt may expect
no slight difficulty attaining that degree OF
cess that his father did in three similar conflicts.
when Erie attempted TO obtain terminus at Boston
sion OF the Troy and Boston Railroad n channel to
prevent Erie from deriving much comfort or profit
from the desired route by cutting the rates.