Evening star. [volume] (Washington, D.C.) 1854-1972, 1879-11-28
THE EVENING STAR.
FRIDAY. November ~, 1873.
Mr.. VandcrbiIt's a.ren, sale.
Val WILD IN THE SYNDlCATE-wHAT MIR, VAN
DEKRIIT


A., , DKRBILT SAYS.
Mr.. William H. Vanderbilt on wednesday eve
Jury disposed OF $50 900 shares of the stock of
the New York Central railroad To n syndicate Of
New York and London bankers. Under the
terms OF sale the syndicate obtain absolute ms
option of buying 100 600 additional shares on tho
same terms The New York TS-ib,pe saws the
price is 100, and go per cent of the purchase
money Is TO be paid in cash, and the same pro-
portion on the list OF each month until the
whole amount has been paid. The first pay
ment was made to-day. The stock is to be
delivered. 1t is understood, upon the payment OF
each monthly installment in the same proper
ton. The prominent members OF the syndicate
are }. $. Morgan Co, OF London; DreXel. Nor
gan Co., August Belmont & Co., L. Won Hoff-
mann Co, Morton, Bliss & Co, and Winslow,
Lanier Co., together with their European con-
nectlonS and Edwin ID. Morgan, Cyrus W. Field.
Jay Gould and Russell Sage. Other capitalists
and bankers have been admitted to share in
the profits OF the transaction. The apportion-
ment OF the stock has not been made public,
put IL Is understood that a large part OF IL will
be placed In foreign markets. A general
agency of the company for the transfer OF
stock, the payment OF dividends there AT a fixed
rate OF exchange. and In general. for the protec-
uon or the company'S foreign interests Will be
opened in London with J. s. Morgan & Co
Changes will be made In the board OF directors
OF the company. The syndicate will be repre-
sented on the part OF its foreign members by J.
Pierpont Morgan and the Wabash railroad in
terest by Cyrus w. Field and Scion Humphreys
These changes in the board will be effected soon
The Tribune says 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-bound traffic. It
received last year $4,000 out OF 5000 cars OF
through freight landed at Toledo by the Wabash
road. The possible loss of this business by
other connections, which the Wabash company
was contemplating. is believed TO have led to
this treaty of peace. The consolidation OF the
Wabash and the St Louis. Kansas City and
Northern railroads, which was ratified In Octo-
Der, gave TO the new company through line
from Detroit and Chicago to st. Louis, Kansas
City and Omaha. AT the west its lines connect
ed directly with the Union and Kansas Pacific
roads, while at the east ii crossed all the trunk
lines to the Atlantic Seaboard, and by its pro-
posed extensions 1t connected directly with the
Grand Trunk and the Great Western railroads
OF Canada. The new company had open to its
choice an the great railroad lines to the sea-
board. While II had almost a monopoly OF the
southwest and Pacific business! TO secure this
business and to prevent its falling into the
hands of rivals of the Central road were import
ant objects TO be gained"
Commenting on this colossal financial transac-
ton, the New York Times says: civilian Ii.
standing, singe-handed, the attacks upon the
management of the New York Central and Hud-
son River Railroad Company, has admitted
Others to share with him in these burdens.
Vanderbilt had been watching the pro-
gress of GOuld's ambitious plans and appar-
emily had allied himself with the Fries mama
gers in opposition. What Inducements were
used to cause him to change his front are not
known. But when the negotiations were re-
newed on Tuesday evening he did not turn
deaf ear"
MR.. VANDERBILT INTERVIEWED
Mr. Vanderbilt had to run the gauntlet Of
numerous newspaper interviewerS upon the an
nOuncement of the sale. To a representative of
the New York Times he said: ..Some people talk
about my getting out OF the road-selling out
my interest, and that sort of thing. It's all nom
sense. 1t ought to be as easy to control road
with thirty millions in it as with fifty or more.
If the people have confidence in your manage
ment they will just as soon send you their proxies
when you have thirty as when you have fifty.
Now, think it's a good thing to have some as
SiStance. We get kicked and cuffed by congress
Sional committees and legislatures and the pub
lie, and feel inclined to have others take some
OF it instead of taking 1t all myself. This sale
will bring In strong support to the road. The
gentlemen who have taken that stock have con-
nections with the Pennsylvania and the Balti
more and Ohio. You see what mean? They
could send all the business of the roads they
control to the ports of Philadelphia and Balti-
more; but by uniting their interests to the Cen
trail road it will all come to the port of New
York. This port will derive the benefit from it.
We have had heavy interest in the road, a big
interest, and controlled it. There is certain
feeling among the public about one man
having so much. | don't say it's wrong
or that it's right, but there is such a feeling.
l am man who can understand the public
sentiment, and am always ready to meet 1t.
/ have sold considerably less than half my in
terest-considerably less than half. That does
not look like getting out OF the road. does it? II
we can't manage the road with what we have
it will be because the shareholders don't want
us to, and with an emphatic gesturel Wen get
out. Any one who thinks am going to get out
because of this sale makes mistake. New York
Central is a good property to have. can tell
you. It's cheap at So or As either. It's good
thing to salt down. know some Of the gentle
men In the syndicate did not get all they want
ed. They would have been glad to get more. 1
suppose some OF the shares will be sold, and
some know will sailed down. A great many
will go TO London. The leading banking inter-
ests of Europe will be interested in the road
It's good property there. Another thing" ad
Ged Mr.. Vanderbilt, This railroad committee
means railroad commission to control the rail-
roads ofthis state The committee is composed
of smart men, and, believe, of honest men, but
they don't see the secret purposes of the men
who stand behind them and have been most
active in urging the investigation forward. As
l said, what these men intend is railroad COM
mission. And with commission OF politicians
what kind of position would l be placed in,
suppoSing retained the controlling ownership
of the New York Central? Why, either must
own the commission or the commission would
own me. When such a thing impends the best
course man can pursue is to withdraw and go
into something else"