The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-11-27
THE GREATEST SALE ON RECORD.
Mr.. Vanderbilt Transfers Fifteen Millions Worth
Of New York Central Stock.
BOUGHT BY A SYNDICATE.
Ten Millions More at the Option of the
Purchasers.

Much excitement was created in Wall street yes
terday morning by rumors Of the sale of 900
worth of New York Central Railroad stock by Presi-
dent William Ii. Vanderbilt to syndicate Of New
York and London bankers. The news. however. was
received with great caution similar reports spread
during the past two weeks had. on investigation.
been positively denied by the parties whose names
were prominently connected with the movement.
Notwithstanding these denials it leaked out during
the morning that there really something in the
reports and later in the day the fact OF large sale of
New York Central stock by Mr.. Vanderbilt
fully confirmed About noon several well known
bankers and railroad men ascending
the steps of the banking house Of Drexel, Morgan
4 Co.. at the Of Wall Broad streets and
before TWO o'clock in the afternoon there were
present in the private Office of that firm Messrs.
William H. Vanderbilt. Chauncey NJ Depew and
Treasurer Clarke, of the New York Central. and
representatives OF the following banking firms and
railroad magnates composing the syndicate:-
L. Won Hoffman Co.. August Belmont 4 Co.;
wnslow. Lsnier & Co.; Kuhn. Loeb Il Co.; E. d.
Morgan Co., woershofer Co.; Norton Bliss Il
Co.. the Drexels. of Philadelphia; Jay Could Russell
Sage. Cyrus W. Field. William L. Scott and D. o.
Mills. Drexel. Morgan Co. represented the Lon
don banking firm of ]. s. Morgan & Co.
THE PURCHASE.
After O secret session Of threequarters of an hour
it was announced that tho syndicate had purchased
from Mr.. william II. Vanderbilt S15OOO.O 900 of New
York Central stock. to be paid for tomorrow, and
had been allowed option of $1O.O0O.OOO more.
The terms refused to the press but it was init
mated that the price would be s120 per share. the
same to be paid for In four per cent government
bonds, which would advance the purchase figures to
1923 so per share.
ha dictate road n al fo
company should be opened in London with Messrs.
j. s. Morgan Co.. to the transfer of stock
and the payment of dividends there at fixed rate OF
exchange. The purchase of this stock will cause
some changes in the Board Of Directors Of the New
York Central Railroad. but it is impossible to
tell which of the present directors will retire.
It is fact however. that Mr. j. Pierpont Morgan of
Drexel. Morgan l. Cos. will represent the London in
terest In the Board. and that Mr. Cyrus W. Field and
Scion Humphreys, Of the firm Of E. d. Morgan &
Co.. will 60 in for the railroad They will rep
resent the Wabash Railroad interest with which the
New York Central will. through the Lake Shore road
now come into an alliance and thereby secure Mr..
Vanderbilt the Southwest traffic business
The transaction in New York Central stock in the
ually large for that security amounting to 6,O65
shares. It opened at lSo fell on to 1898. advanced
to 1876 the strength OF the purchase by the syndi
cate, and closed at 1342l 1876.
NEGOTIATIONS FOR THE STOCK.
As far could be ascertained negotiations the
past two or three weeks. 1t is said that Mr. Cyrus
W. Field. representing the syndicate. approached
Mr.: Vanderbilt on the subject the time mentioned
offered to purchase 100000 shares of New York
Central at 500 per share. provided the latter
Year This Mr. vanderbilt refused to do and the
syndicate modified their terms. asking that no
Central stock should be thrown the market for
six months. This proposition, it is claimed. was
also rejected by Mr. Vanderbilt and Friday last
it was thought that the negotiations had fallen
through. On Monday night. however, 1t is said
Mr. Vanderbilt reconsidered his decision, to
agreement and signed a contract with the
syndicate. giving them until yesterday afternoon
to perfect their arrangements.
INTERVIEW WITH MR. Vanderbilt.
ut IL the biggest thing that happened in New
York. said Mr.. W. H. Vanderbilt to reporter of the
HERALD last night. II only knew OF it at six o'clock.
Young Mr.. Morgan came here to my house and told
the papers, but really knew nothing Of 1t until
was notified officially.
"You expected something of the kind was likely
to happen at any momentr
well yes. You see 1 began to discover in the
public sentiment some time ago feeling that was
thing, and there feeling in the public mind
against it. always believe popular feeling. and
! made up my mind there must be something in that
objection. and am convinced now that there is;
SO determined to widec the circle OF manage
ment and make It as as extended as would be
fellows who are discontinued and have little
to do but go round the grogshops and talk
and find fault and get up schemes to grind axes.
They will pretend here and there to get up commit
tees and say they represent the Chamber of Com
merce, go before the Legislature and get up in
chinery TO sharpen their hatchets. The subject Of
all this fuss is mostly rates. Some of the active
spirits want rebates and various other little
sions. like parties I could name Well. the
railroad must own the commission or the commits
sion will soon own the railroad Everybody knows
how that is"
"will this new arrangement put stop to all that
II think so. The great benefit to this city will be
the close connection it brings about between the
several railroads spread over the West"
Eyes; and covering an immense territory. Tho
gentlemen managing those roads went to the Bati-
more ana Ohio and the Pennsy lvania and endeav-
ored to make arrangements with them. but did not
succeed. Then they came to me. The New York
In the world. thought the m tier and finally
went to Mr.. Morgan. of Drexel Morgan, who
known throughout the commercial world. and told
them what would do.
WANTED TO MAKE FRIENDS"
II wanted to make those people who were always
think have succeeded. The way to do that is to
touch their interest. Help them and at the same
time help yourself. If they make $40 and make 50
shall be perfectly satisfied All these rolling and
turning mill fellows were screaming when their
places were closed and they were making no money.
They said the railroad was making it all. Now they
are making money and willing to the railroad
mako a little too. What would New York
be without the Central Railroad2 or
the Central owes something to New York,
and that is why 1 am concerned about
public opinion. am. to certain extent. public
man, and l believe public opinion is always or
nearly always right. That aversion TO one man
growing too great Is founded on sound basis 1
think that is right"
"How much stock has been sold. Mr.. Wander
bilt?"
THAT cannot answer you. The gentlemen who
pure hased the stock may tell that If they like.
shall not say anything on the subject That part of
1t il their business"
els the amount named correctY'
81 cannot say"
els the price quoted rghtY'
81 cannot answer that either. II they chose to
make their business public that is their affair. and
not minc."
"How will the stock be placed on the London
marketf'
1T will take little time to perfect all the arrange
ments but It is in good hands. and will there
in due course. l think 1t will 60 there for 100.
It is worth 100. and will be bought here as per-
mnnent Investment"
How long ago is 1t since you sent to Mr.. Morgan.
saying this arrangement would be agreeable to
your
81 really don't remember"
ho from LINN ihaA hs,ui