New-York tribune., 1879-11-27
HISTORY OF THE NEGOTIATIONS.

HISTORY OF THE NEGOTIATIONS.
THE LARGEST SALE OF RAILROAD STOCK EVER
MADE by A SINGLE owNER-MR. vANDERBlLrs
OBJECTIONS NEUTRALITY-SUSPICIOUS. OF HIS M
PoRTANT RAILWAY SYSTEMS.
The sale of go. 600 shares of New-York Central
stock to a syndicate composed of prominent foreign
aud American bankers and of friends of the Wabash
Railroad system was concluded yesterday. substan-
tally in the form and the conditions exclusively
announced in The TRIBUNE of last Friday. MT
Vanderbilt sells outright 100000 shares and grants
TO the syndicate the option of taking 100000
shares more upon the same terms. The price OF the
stock is fixed at 100 and payment Is to be made IN
monthly instaments. This sale. the largest ever
made by single owner of railroad stock. assumes
importance not only from the magnitude OF the
transfer but from the consequences that are likely
TO follow The result will affect indirectly the en-
fire railroad interests of this country.
The negotiations, which last Thursday fell Just
short of success, interrupted by the refusal Oi
Dr. Vanderbilt to accept conditions restricting
tho sale of tho remainder of his stock
lie was unwilling also 10 give as large
a representation in the board Of directors as was
demanded by the members of the syndicate They
asked for three places in the Board, and Mr.. VAN
Jerbilt refused to give than two. He finally
withdrew his objections both points, and the sale
was comnleted Yesterday. The condition in regard
10 the sale of his stock was made 10 the exist
ence OF the syndicate.
THE SYNDICATE.
The prominent members of the syndicate which
has thus virtually bought 250 900 shares OF Central
stock are j. :. Morgan & Co.. of London, Drexel,
Morgan Il Co., August Belmont IL Co., l.. Won
Hoffman, & Co.. Morton, Bliss Co., and
Winslow, Laner Il Co.. together with their
Europeau connections, and Edwin ID. Nor
gan. Cyrus w. Field. Jay Gouid and
Russell Sage. Other capitalists and bankers have
been admitted share in the profits of the transac-
ton The apportionment of the stock has not been
made puolic, but il understood that large part
of IL Will be placed in foreign markets general
agency of the company for the transfer OF Stock
the payment Of dividends there at fixed
rate of exchange. and, in general, fer the
protection of the companys foreign interests, viii
be opened i'm London with j. $. Morgan & Co. The
head of the English house. J. s. Morgan, who is
now i'm New-York has been prominent in conduct
ing the negotiations. To him and TO DreXel, Nor
can a. Co. Mr. Vanderbilt at the last entrusted, on
his part, the consummation of the bargain
TERMS OF THE SALE.
Under the terms of the agreement the sale Of
$50 900 shares OF the stock is absolute. The price
is 100 and 20 per cent of the purchase money to
be paid in cash. and the same proportion on the 1st
Of each month until the whole amount has been
maid The first payment will be made tomorrow.
The stock is to be delivered. il is understood. upon
the payment of each monthly instalment IN the
same proportion. Mr.. Vanderbilt will retain his re-
maining interest. which is believed TO amount TO
ohont $50 900 shares and will continue TO hold the
control and management of The road. Changes VIII
be made i'm the Board of Directors OF the company.
The syndicate will be represented on the part OF lis
foreign members. by j. Plerpont Morgan and the
Wabash Railroad interest by Cyrus W. Field and
Scion Humphreys. These changes IN the board will
be effected soon.
For the additional 100, 900 shares the syndicate
holds the option to buy on the same terms. 1t Is
believed that this option will not expire for one
vear bnt If was admitted yesterday by members of
the syndicate that il w0uld extend beyond ihe Time
required for the payment for the absolute purchase
AT the same time the utmost confidence was eX-
pressed that the syndicate would take the addl-
tona stock long before the expiration OF the priy-
lege.
EFFECT on THE STOCK EXCHANGE.
The official announcement of the sale was not
made until afternoon. but rumors OF It's compile
ton reached the Stock Exchange early IN the day
The news created great excitement and was
the universal topic of conversation. Its ell
feet was seen IN the immediate advance of
the Vanderbilt and Wabash stocks. In tins rise
many other stocks sympathzed. and the market
closed strong and buoyant New-York Central rose
from 1898. to 1914, and Wabash from 80 to 43l2
and the preferred stock from 63 TO 6s. while Ere
closed at $685. the highest price of the day After
the close of business 3ss4 bid Oh the street for
Erie.
The sale was everywhere the subject of conversa-
tion and bankers and brokers spoke in praise OF
The TRIBUNE which first had given them the details
Of the negotiation. prominent member OF the stock
Exchange said that in spite of the frequent mall
cions and yirulent denals by envOus papers which
had been beatcn on the news, most Of the members
had from the first believed that The TRIBUNEs
account was substantially correct.
TWO IMPORTANT SYSTEMS UNITED.
The completion of the sale by Mr.. Vanderbilt
assures for a time harmony between the Wabash
and the Central systems The Central has received
from the Wabash Road the larger part of its East
bonnd traffic. Ii received last year $4,000 ont OF
- 900 cars of through freight landed at Toledo by
the Wabash Road. ] he possible loss OF TINS Dusi-
ness by other connections which the Wabash Com
pany was contemplating, is believed TO have led 10
this treaty Of peace. The consolidation OF the Wa
bash aud the ST. Lons, Kansas City and Northern
Railroads, which was Iatllea N OctoneI gave .V 10
and Chicago to ST. Louis Kansas City and Omaha.
Al the West its line connected directly with the
Union and Kansas Pacific Roads while at the East
IL crossed all the trunk lines to the Atlantic sea.
board. and by its proposed extensions 10 connected
directly with the Grand Trunk and the Great
Western Railroads of Canada. The new company
had Opcn to it, choice all the great railroad lines 10
the seaboard while II had almost monopoly of the
Southwest anu Pacific business. TO secure this
hands of rivals of the Central Road were
important objects to be gained About the
time Of the meeting at Toledo of the stock
holders of The consolidated Wabash Company,
negotiations opened in behalf oil Mr.. Wander
biit, with the friends Of the new company. After
several weeks in which the details and provisions
of tne compact have been discussed the negotiations
have been brought at last to successful close.
Apart from the magnitude of the transaciion.
ION il lNa1 ftla