The New York herald., 1879-12-10
first. He bought New York and oswego as a pl


Then. how do you account for the late unprece'
dentel rise in Midland securities?"
'Weil, it would hardly do for you to get that in
formation from me, because am connected with
the Erie
"And why not? Is Erie concerned in it?"
''Weli, II you will promise not to mention my
name will give you my opinions. OF course. they
are only opinions and am certain of nothing. but
still think can judge how the wind blows from
little specks OF dust that come my way
ERIE's INTENTIONS.
The desired promise being given, the gentleman
continued -.I think Ere intends to eobble up the
Midland The track of the latter now crosses the
Erie track near the Bergen tunnel and the Change
could be easily effected that the Midland wonld
run through the Erie tunnel. The Erie needs the
Midland 1t has more freight now than it can con-
venieny carry. and there is great trouble with the
trains consequence. II the Erie were to buy the
Midland all this trouble would be averted The Mid
land could be made the great freight road between New
York and Middletown, west of which place the Erie
can take of its freight without further AID
1t is between New York and Mddletown that Eries
officials bothered with the freight traffic. This.
think Is the true version OF the affair and the real
cause OF the enormous rise in Midland securities
Mr. H. L. Hewson merchant of Paterson. N j.,
has been closely identified with the interests of the
New Jersey Midland ever since the road was con-
structed. He was. i'll TACT of the first who
thought Of building the road. and has always had
considerable amounts of its securities. HERALD
reporter accordingly called upon him. and the fol
loving conversation ensued -
"Mr. Hewson presume you are aware Of q move
ment in New Jersey Midland?'
Certainly. hold some of the securities of the
road and of late have received several offers fol
them by parties desiring to buy"
MAY ask whether you disposed Of the securt
tiesy"
II sold some Of them. but still retain about hall
of the amount originally held
''Who were the parties you sold to?"
II really do not know. The transactions all
through brokers"
''Do you know who is buying up the bonds?"
II do not know emphasizing the last word) sill
have decided and, think. well founded opinions"
Have you any objections to saying who the per-
sons arer'
Il have little doubt that the road is being bought
up in the interest Of the same parties who bought
up the New York and Oswego-Samuel j. Tilden,
George Opdyke and Others"
"What do you suppose is their objecty'
'To connect the two roads and make through
line to New York. think the road will enter
New York finally through the North River tunnel ut
present in course of construction. am quite
tain that Mr. Tden is the controlling spirit though
it may be the Erie authorities are CONCERNED aid
some inclined to think that Mr.. Vanderbilt has
a hand in it also. The object of the present move
ment is undoubtedly to make great through freight
road"
What amoun. Of bonds of the Midland are out
standing nowI"
gage bonds. $l.500.000 and third mortgage bonds,
about S400.000 The whole OF the issue of third
the company did realize on most of them. think
those the figures. The third mortgage bonds.
deemed worthless some time ago. are now being
bought up."
A BROKERS' VIEWS
Certain parties owning second mortgage New Jer-
ali e Se
held i'll Vantage N. Y, have been bought up and
sold topares in this city. Advertisements have
Gently appeared in the HERALD calling for New Jersey
Midland first mortgage bonds consolidated bonds and
stock. Yesterday reporter called on Wall street
broker that had advertised for New Jersey Midland
securities. The gentleman desired that his name
should not be mentioned and very cautious in
imparting any information. He asked to
plain the sudden rise OF the New Jersey Midland
bonds from % and % to 60 and 70 within period Of
four months and to state why he was advertising for
them.
..It is because of their intrinsic value" he re-
piled. "New Jersey Midland has been going up
steadily long time and stands at 65 to 20. The
bonds have grown very and very few offer
ing. The line was built for the Oswego Midland
road to reach New York and has good deal of local
travel. The first mortgage bonds are selling at TAX
TO rs; second mortgage at 221 to 25 ana third mort
gage-called the consolidated bonds-at about five
per cent of their face value. Tho reason. think.
the bonds rising because or the reorganization
OF the road that will probably soon take place"
"For whom are you purchasing these bonds?'
''Of course should be unable to tell you that,
If knew. 1 am buying for bankers and brokers
who come in and give me orders to that effect. My
impression is that Mr.. Tilden is largely in
terested among others in buying up these
Midland has been very strong. and there is good
prospect that it will continue SO. Personally
/ have doubt that there is plan foot for
through line to this city, somewhere from the West
but don't know with what roads connection could
terestcd in the scheme and as the men connected
with the Midland railroads are very wealthy they
wouldn't so into this thing II there was not pros
pect of handsome profit There is certainly some
body who is keeping New Jersey Midland moving up
and shall not be surprised to it reach 80 before
long,
THE HUDSON CONNECTING ROAD.
The reporter then interviewed gentleman who
has had Facilities for knowing the inside history Of
the movement against the New York Central. but
who did not wish his name to appear in connection
with his remarks
There is a scheme on foot opposed to the New
York Ccntra, he said. "but 1t does not point in the
direction of the New Jersey Midland. In the
figuring out OF the scheme 1t planned
so as to make Vanderbilt sell out his
New. York Central stock: The idea was to
point called Fddler's Elbow. where there is large
dock that will furnish the best possible terminal
OF the Morris Canal across Bergen Point without any
cutting through the rocks and going over
1 aen cyras ed aoS %.
0. Mcdowell. The Hudson connecting road
has charter giving it the right to connect every
warehouse with every railroad and every railroad
with every other railroad in Hudson county, and to
charge ten cents per ton mile and ten cents per
head mile. 1t is a very valuable charter. and ono
that under the constitution of New Jersey cannot
be plcaed. 1t is now leased to the New Jersey Mid
land That Hudson connecting road is the means by
which the New Jersey Midland with the Pennsyl-
vania road and its charter is worth as much the
franchises OF the elevated roads. You see that BY
the New Jersey Midland you reach Middletown,
where you connect with the Oswego Midiands
going south of 0swego. and Ly short line connec-
tion Is made with the Rome. Watertown and Ogdens-
burg road. which brings you to Lewiston Bridge.
From there you go to Niagara River connecting with
the Great Western of Canada and the Grand Trunk
roads into Chicago This project was used to get
hold of New York Central stock. Before this pur-
chase a contract made between the Wabash and
the Great Western and this outlet used to bring
Vanderbilt to terms. The purchase into Wander.
bt's roads. including Lake Shore. breaks the close
alliance between the Wabash Great Western and the
Grand Trunk system, and they (the Great Western
and Grand Trunk people looking for an entrance
into New York of their own. The control OF the
Oswego Midland is consolidated into a few hands
and is very available for such purpose. South Of
Mddletown the present outlook is toward the New
York and Greenwood Lake road. this line being very
direct. 1t il twenty miles shorter than the New
Jersey Midland and eight miles shorter than the
Erie AT present the purchasers of the Oswego MIDI
land are planning to lease the New York and Green
wood Lake railroad, and these securities have been
very quietly secured. You can hardly find share
of stock anywhere. That plan doesn't necessarily
give up the New Jersey Midland, as that property,
its basis. is doing so well tnat 1t 10 desirable
to the combination.
INFLUENCING vANDERBILr.
Even after the Vanderbilt purchase the absorption
of the securities went and IL is attributable only
to this Great Western and Grand Trunk business.
These Midland combination roads selling
cheaply, speculation in them was worked up to
influence Vanderbilt. Then back of that was tho
advantage OF consolidating these different roads
and pulling together with the Grand Trunk