The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1880-01-21
A SOLID SYNDICATE.
Prominent Bankers Of New York and Rail-
road Men form a Syndicate for the
Purchase Of Central Pacific Stock
for the Benefit Of Wabash and
Union Pacific Railroad
Systems.

New YoRK, January 2O.-The Tribune
OF this morning publishes the following
Asyndicate OF prominent bankers, which
includes also persons largely interested in
the Wabash and Union Pacific Railroad
systems, has been formed for the purpose
Of buying large block Of Central Pacific
stock. Negotiations for the purchase Of
the stock have been in progress for the
last two weeks, but the contract was not
completed until yesterday. O. P. Hunt
ington, Vice President Of the Central Com.
pany, on behalf OF himself aud the
others OF the road has sold to the syndi-
cate fifty thousand shares Of stock, and
has given an option on fifty thousand
more. The price paid for the stock is un-
derstood to be $40, but q higher price,
understood to be $50, will be paid for the
second lot, in case the syndicate will take
the option. This privilege extends over
six months, but 1t Is believed by promi-
nent members Of the syndicate that twill
be taken long before that time expires.
Payment for the stock Is to be made in
the East, and no change will be made In
the present management OF the road.
1t Is understood, however, to be proba.
BILE that in case Of the successful market.
ing OF the stock the present transactions
will be followed by others. Noconditions
in regard to the future purchasers Of the
stock or management OF The road have
been included in the contract. II is pure.
ly cash transaction. The owners OF the
road have been induced to part with the
stock in order TO share with the others
the control Of the company, believing this
divided control will add to the value
OF the property. Almost the entire stock
of the company has been held by the
original builders, Leland, Stanford, Q.
P. Huntington, Chas. Crocker and A. I.
Crocker. It is said that they consented to
the sale Of part OF their stock in belief that
public attention would be attracted by
this means to the value OF the property.
The members OF the Syndicate who
have secured interest in the Central Pa.
cifc are: R. P. Flower & Co., Prince & |
Whitley, Hatch & Foote, Kuhn, Lock 4 |
Co., Hall, CASTOR & Co., May & King,
Marx & Co., j. s. & Wormses, Phillip S. |
Pryor & Co., Fisk & Hatch, Brewster,
Sweet & Co., OF Boston; Wm. H. Travers,
August Rullen, Morton, Bliss & Co.,
Speyes Bros. 4 Co., OF Holland; Russell
Sage and Jay Gould.
An executive committee consisting oil
R. K. F. Conner, ]. d. Prince and ], d.
Probst has been chosen to conduct the al. |
fairs OF the syndicate. The stock will no,
be sold by subscription but aportion OF II
will be offered early next week on Stock
Exchange. The stock has been on the
list Of the exchange for many years, but
dealings in 1t have been almost nothing
for the reason that the stock was held in a
few hands. 1t is the purpose Of the com.
pany to make the stock one OF the active
stocks on the exchange and to this end
small amount will be sold probably on
One person who had been admitted to |
seat yesterday, sold his privilege at
q very large advance. Itwas stated by
prominent member OF the Syndicate that
outside offers for part OF the stock had
been made at a price far above that to be
paid under the contract. 1t was stated |
also that broker had been authorized to
offer much higher price. for control OF
the road. These offers have been refused
by the present holders Of the stock.