The New York herald., 1879-07-10
RAPID YRANSITS TROUBLES
Will the Garrison Interest Obtain
Control Of the IL" Roads?
FINANCIERS EXCITED.
Comment on the Rejection of the Mayors
Commissioners Report.
THE LAW ON THE SUBJECT.

1I1E LAW YIN lIlE DODJEO1' l.
The excitement in financial circles continued yes
terday the expected deal in rapid transit.
and while everybody the qu viue to learn the
news no one presumed to speak confidently OF more
than one contingency. The possibility demon
strated in yesterdays HERALD of the Garrison in
terest obtaining control of the entire monopoly was
out that to show the possibility of capitalist OBJ
tanning control Of monopoly was almost equiva-
lent to demonstrating that he would do it. Several
things served to enlven the general discussion and
upon all Of them different interpretations were put
by different people. according their prejudices
interests dictated. In the first place the action of
the Board Of Aldermen on Tuesday in rejecting the
whole Of the report of the Rapid Transit Commis-
sioners was variously received. 1t known that
the Commissioners had expressed their intention of
going with their work regardless of the snub
they had received from the Aldermen and that they
had expressed the belief that the Aldermen had no
power to thwart them in their work. On this point
there were animated discussions, some holding that
sccording to the law the Commissioners had first to
obtain the consent of the local authorities before
they could determine upon any route under. over.
along any street Others declared that this
view of the law had been held by the courts to be
erroneous and that the first set of the
had encountered precisely similar obstacle and had
gone on regardless of it.
DISCUSSING EIvECENT FARES.
The discussion Of fve-cent fares, urged by the
HERALD from the first. was also particularly lively
among the stock dealers. It asserted as with
knowledge that great part of the fight which is
garded inevitable between the representatives OF
the two companies in the directory of the Manhattan
company would be on this question. and. although
the proceedings of the meeting of that directory yes
terday afternoon were private yet it asserted
the street that these proceedings had mainly
of discussion Of that question It is pretty gener
ally understood that. the directors now stand if
the matter Is made issue in the board there will
be tie vote. Mr.. Field. who is looked upon the
leader OF faction is understood to be in Of
nvecent fares. and Mr.. Garrison, who is considered
the leader of the other faction. is known be op
posed to any reduction. As to the advisability Of
the move. although some fnanciers look upon
duction iadvsed, nearly the whole Of the public,
outside the directory, has acknowledged the sound
ness Of the position taken by the HERALD.
A FALL IN MANHATTAN.
Another cause OF excitement and q most potent
one the Stock Exchange was the sudden fall in
morning and sold at 3s in the afternoon On this
question. on all others, there distinct diff
ferences Of opinion One broker said he thought it
was direct result of the agitation of the ve-cent
fare question. Holders. he said. timid and.
not believing that the stock would pay fair divi-
dend at the reduced rate Of fare. anxious to
realize what they could Another declared that this
was erroneous and that the fall was only the result
Of number OF heavy stockholders putting their
shares on the market. "They hold this stock" ho
said. mot direct investment. They bought the
stock OF the Il roads direct. and the Manhattan
guaranteed ten per centinterest their original
vestment by the terms OF the lease and they do
nothing. and they are willing to take what they can
get for 1t Is good purchase ut the market rates.
although ts value an investment is not to-day
It's good Investment for . year." And he took
piece OF paper and figured out to his satisfac-
ton that by carrying 100000 passengers day the
Manhattan company could pay the guaranteed divi-
dends on the stock OF the Metropolitan and the New
York companies, meet the interest on tho mortgages
and still pay dividend of ten per cent on its own
stock, besides earning small surplus.
A MONOPOLY RoREsHADowED.
The main topic OF discussion, however. and the
one to which all the others led was the probability
OF the Garrison party obtaining full control Of the
entire rapid transit system. On this point man
was bound to be monopoly from the start. and
bolder or shrewder game was ever played in New
York. and none has been played better. See how the
four men who stand ut the head to-day have man.
aged the whole thing. Here they In the Board of
Directors of the Manhattan Railway Company"
And he read from printed list William II. Garrison,
]. Il. Navarro. George NJ. Pullman. Horace Porter
They got control Of the charter Of the Gilbert Ee
waited road early in the game. and Dr. Gilbert was
the first to take back seat. Then they got control
or had 1t already, of the Loan aud Improvement
Company. and contracted with themselves to build
u
from $4,000 mile to build. Their names in
the list OF directors Of the Loan and Improvement
Company, you will notice. Then they brought
about the consolidation Of the two roads and the
practical watering OF the stock under the pretence
OF Q lease to the Manhattan company. They had
thus by successive steps assured themselves first
the interest $500 900 mile Of the road, to the
exclusion of the other stockholders; then they had
guaranteed them ten per cent on their original in
vestment and then held stock which represented the
whole OF the surplus"
THE DECIDING VOTE
% coi1 thar hat thoxy not
satisfied with that. They hold exactly one-haf the
stock Of the Manhattan company in one lot and 1t
would cost them this afternoon there he SMILED
quietly exactly Sas to secure the controlling vote in
the company. This means the election OF what di-
rectors they choose at the next election which
on in November, aud the exclusion OF any whom they
DO not like. II this Is not monopoly don't know
what Ii. II they have been smart enough there he
smiled quietly again) to think of it, and IL they hap
pen to have $38 about their Clothes they have prob
ably secured the absolute control of the management
or both OF the original companies ana all the rapid
transit roads in operation and in process of
struction. Mr. Fields, he continued, it is true is
the largest individual stockholder in the New York
Elevated Company. but he owns only about
81 100000 worth OF stock in that. For this he
eeives 81, 100000 in Manhattan stock but that only
gives him one-tenth interest In the whole thing"
THE CITY 'wrsE MEN"
The action of the Board of Aldermen together with
the extraordinary scene that occurred between City
Fathers Haughton and Sauer, the uni iversal sub
Iect Of discussion about the City Hall. Why did the
Aldermen take such summary action? What induced
one OF their number to bring up the subject at no
short notice. rather without any notice what.
ever2 These substantially the questions that
one heard on every side. Not whisper of the
intended action of the Board had gone forth
what renders the successful attempt to deprive
the people OF the annexed district of rapid
transit facilities for ut least another six months the
more difficult to comprehend. Nearly all the wise
maj of fho n Nv wpr IL dnv and