The New York herald., 1879-12-10
A VAST RAILROAD SCHEME.
The Secret of the Recent Great Sale of
New York Central Shares.
ANOTHER TRUNK LINE TO THE WEST.
Was Mr.. Vanderbilt Intimidated
by Mr.. Tilden?
GALvANlZlNG A DEAD PROJECT.

The remarkable conduct Of Mr.. William H. Van
derbilt in disposing of 600 of his cherished
New York Central stock has been . constant puzzle
and the theme OF varied speculation in financial
circles. The gratuitous explanation that he had
sold the stock to shield himself from the imputa-
ton Of being q monopolist OF choice investments
was not entirely satisfactory. could the unni-
tiaed the logic of selling at 100 stock that the
owner considered was worth $50. or of giving up an
investment that paid eight per in favor
Of investment yielding only four per cent
Some light is possibly thrown the mystery by the
theory that Mr. Samuel ]. Tilden has been trying
obtain an advantage over the New York Central by
equipping rival road to the West. and that Mr.
Vanderbilt, to head Mr.. Tlden off by securing and
monopolizing d Western connection and extension
had to let the Wabash interest into the direction Of
the New York Central. Rumors had been in cir
culation for time regard to line that would
be in rivalry with the New York Central. and Mr..
Tlden has been considered the moving spirit of the
new combination. reporter OF the HERALD inves-
tigated the matter and learned the following facts
NEW YORK AND oswEGo MIDLAND.
The recent sale OF the New York and Oswego Mid
land Railway is alleged to have been consummated in
the interests of Mr.. Ttlden. The road it will be re-
membered. was sold under foreclosure PROCEEDINGS
to Mr.. G. N. Jordan of the Third National Bank. Of
this city (Mr. Tildens bank so-caledl. for little
over $40OO.0OO It understood ut that time that
the road being bought with MIR. Tilden's
money and all sorts of surmises were made
to what he wanted with his purchase.
glance at q map of New York State
shows that the three cities of New York Albany and
Oneida form the points Of nearly rectangular tri-
angle; that the city of Oneida is reached either by
York and Oswcgo Midland in what appears to be a
more direct course the latter forming the hypoth-
enuse of a right anged triangle The course Of tho
latter road Is. however, winding and full Of
short curves that the difference or distances by
either OF the roads from New York Oneida very
lttle and that little. according to Of the rail-
way guides. in favor of the New York Gen.
trail But this could be changed. The curves in the
New York and Oswego could be Strengthened out and
by this means. civil engineers declared the route to
the lakes could be made several hours shorter.
Suppose this done-suppose shippers
knew that by way of the New York
and Oswego they could reach the seaboard
many hours sooner than by way Of the Central
would it not njure the latter road? Would this new
outlet from the lakes the West and from the grain
fields of Northern New York not become a pros
porous enterprise. and. tapping the Central 27O
at the expense Of the Central? The New York and
Oswego passes through rich country. and one
where the expense another track would not
be o great difficulty.
This all very fine, but 1t would require large
outlay cf capital to equip the New York and Osw
sufficiently well to compete with the Central and
then the Oswego road terminated 1T Middetown and
did not reach New York ut all. The former objec-
ton easily met, Mr. Tilden's proverbial "barT'
and other peoples 'barls." which always open
when money to be made. being put down q an
all sufficient The latter objection seemed.
however, to be more serious. Hitherto the New
York and Oswego had reached New York the
rails of the Erie and occasionally over those of the
New Jersey Midland.
GENERAL SCRAMBLE.
With the Erie o combination seemed preposterous;
but the Jersey Midland. in the hands OF receiver.
was to be sold under foreclosure proceed
ings. number OF people were in consequence per-
suaded that Mr.. Tilden wanted tho Midland, and so
4 general scramble for the bonds and stock ensued.
The first mortgage bonds. which four months ago
held at % and %. selling at 50 and TO-
the second mortgage bonds. which were drug in
the market at cannot be bought for less than
o. and the third mortgage bonds collected
of pigeon holes. where they had been neglected
as utterly worthless, and represent ton per
cent of their face value. Advertisements appeared
in several newspapers calling tor New York and
Oswego and New Jersey Midland securities. Some
body certainly buying up the two roads. aud it
with purpose to discover who these purchas-
ers were and what their object was that a HERALD
representative yesterday visited several gentlemen
who ought to know something about the matter
The first person visited was Mr. T.. A.
Hobart, the receiver of the New Jersey Mid
land. Mr.. Hobart resides ut Paterson, n. j., repre-
sents his county in the State Senate. Is prominent
lawyer, with Offices the First National Bank,
and altogether person OF importance in that part
of New Jersey. He assured the reporter that was
totally ignorant OF any schemes which Mr.. Tilden
might engage in. That the road was being bought
up by some person persons was clearly evident
to him. but who these persons were or what their
Interior object was he could not tell.
TO what do you attribute the rapid rise in the
securities of the road?' queried the reporter.
''ro the fact that some wants the road for
some purpose other. The road has not only been
paying expenses lately but has been earning money
still, enough to justify the rise in its
ites There have been great many ruinors re-
Gently i'll connection with the road--so much that
l am altogether at sea as to what they all mean.
'when will the sale OF the road take placer
cit is advertised to be sold the 18th. but the
sale will again be put OIL, pursuant to from
the Chancellor to adjourn the sale from time to
cided the appeals taken bv the different interested
parties in the foreclosure proceedings. There
nve appeals pending at present, and tue road will
not be- sold until these have been decided"
''rhen you have no idea as to the future Of the
road p
II suppose it will be bought in by the bondhold-
unless other parties want the road for other
purpose"
are buying up the bondsY
''l do not: know large quantities have been sold
lately. hut whom they were bought for do not
know.
WHY THEY HAVEN'T SOLD.
Paterson Is the largest city on the line OF the New
Jersey Midland and large quantities OF its securities
time held there. Most of them have,
however. boen sold to whom the sellers did not
know the securities passing from their hands into
those OF brokers' Several persons were found who
still held of the bonds and had declined to part
with them. Their reason given to the reporter for
not parting with them was invariably
"Mr. Tilden has bought the New York and Oswcgo
and il going to buy the Midland and make q big
road OF It to beat Vanderbilt. Don't you see how
the bonds are going upy The public of Paterson
aud vicinity has become thoroughly imbued with
the idea that Tilden intends to become the pos
Of the Midland. and the haring signs put
by Paterson brokers not calculated to shake that
belief These signs call for New York and Oswego
and New Jersey Midland securities of all kinds but
the only Information that could be obtained from
the brokers was that they were buying them 'for
parties in New York"
An intimate friend Of Mr.. Tiiden. in conversation
with HERALD representative, was next seen but he
l