Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1880-01-21
RAILROAD RACKET.

Large Block of Central Pacific Stock Pur-
chased by Powerful Syndicate - The
Trunk Lines Declare Against Reduction
of East Bound Frejgh's- Other Notes.
NEW YORK, Jan. 20. The Tribune this morn
ing publishes the following: syndicate of
prominent bankers, which includes also per-
sons largely interested in the Wabash and
Union Pacific railroad systems, has been
formed for the purpose of buying largo
block of the Central Pacific stock. Negotiations
for purchase of the stock have been in progress
for the last two weeks, but the contract was
not completed until yesterday. @. p. Hunting
ton. vice president of the Central Pacific COM
pany, in behalf of himself and other owners of
the road, has sold to the syndicate $4,000
shares of stock, and has given option on
so, OOO more The price paid for the stock ID
understood to be IS cents: but
the higher price, understood to be so cents,
will be paid for the second lot in case the syn
dictate shall take the option. This privilege
extends over six months, but it is believed by
prominent members of the syndicate that 1t
will be taken long before the time expires
PAYMENT for the stock is to be made IN cash,
and no change will be made at present In the
management of the road.
1t is understood, however, to be probable
that in case of q successful marketing OF tie
stock the present transaction WILL be followed
by others. No conditions in regard to future
purchases of stock or the management of the
road have been included in the contract. 1t
ia purely cash transaction. The owners of
the road have been induced to part with
the stock in order to share with Others
control of the company, believing that his
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 Stamford, G. P. Remington, Charles
Crocker and G. +. Crocker. 1t is said that
they consented to the sale of part of their
stock in the belief that public attention would
be attracted by this means to the
value of the property the members OF
the syndicate which has secured an interest IN
the Central Pacific road are: r. p. Flower
& Co., Prince & Whiteley, Hatch & Foote. Kuhn,
Loeb & Co., Holl. Garten Il Co., May d King,
Mark g. Co., /. & 7. Wormser, Philip Speyer &
Co., Fisk & Hatch, Brewster Sweet Co.. of
Boston, VIM. 81 Frauers. August Rutten,
Morton, Bliss & Co.. Speyers Brothers d Co.,
of Holland, Russell Sage and Jay Gould.
An executive committee, consisting OF Il. T.
Flower j. d. Prince and j. ID. Probst, has been
chosen to conduct the affairs of the syndicate.
The stock will not be sold by subscription, but
a portion of it will be offered early next week
on the stock exchange. The stock has
been on the list of the exchange for many
wears, but dealings in it have been almost
nothing for the reason that the stock was held
In q teW naNuS. IL Is tu0 pun iIooC Va thC SouAs
mittee to make the stock one of the active
stocks on the exchange, and to this end a
small amount will be offered probably
on Mondal. Que person who had
been admitted to the syndicate yesterday
sold his privilege at a very large advance. 1t
was stated by prominent member of the syn
dictate that outside offers for part of the stock
had been made at price far above that under
the contract. 1t was stated also that a broker
had been authorized to offer a much higher
price for control of the road. These offers
have been refused by the present holders of
the stock.
NO REDUCTION IN EASTERN FREIGHTs.
New YORK Jan. 20.-The joint executive
committee Of the trunk lines met to-day, and
after discussion of various subjects brought
before the meeting adopted the following
| WHEREAS. Numerous inquiries having been
| made as to when q reduction In East-bound
| through rates will be made;
| Resol,ed, That We regard it as lne1pedient and
inadyisable to make any changes in the present
rates from Chicago and points affected by Chi
| cagO.
4 resolution that no changes be made there
| in until and unless first submitted to aud de-
scribed by the joint executive committees of
whose action direct public notice will be given,
adopted.
| Great Irish Aid Meeting at Washington.
| WASHINGTON, Jan. 90 "A largely attended
meeting, in aid of the destitute people of Ire
land was held ut Lincoln hall tonight. Such
a gathering has seldom been seen in a public
hail in Washington. Chief Justice David K.
Carter, of the supreme court of the district,
presided, and upon the stage were seated
| large number of prominent citi-
zens and Congressman. Addresses
we're made by speaker Randall, Senator Thur
man and Jones, Florida Representatives But
terworth, Ford, Ellis, Wright, Hon. Geo. G.
Gorham and others. Appropriate resolutions
| Cd Tod hsnr nlade to he