New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-01-21
DETAILS OF THE TRANSACTION.

A syndicate of prominent bankers, which IN
cludes also persons largely interested IN
thc Wabash and Union Pacific Railroad systems,
has been formed for the purpose OF buying
large block Of Central Pacific stock. Negotla-
| tions for the purchase of the stock have
J been in progress for the last two weeks
but the contract was not completed until yesterday
c. 7. Huntington, vce-president of tie Central
! Pacific Company, in behalf of himself and the
| other owners of the road. has sold to the
syndicate 80 900 shares of the stock and has given
| an option for 10000 shares more. The price pali
for the stock is understood to be ~,
but higher price, understood to be 80,
will be paid for the second lot in the syndicate
shall take the option. This privilege extends
over six months, but it is believed by
prominent menbers of the syndicate that it will
be taken long before the time expires. Payment for
the stock is to be made in cash, ana no change VIII
be made in the management OF the road.
IL is understood, however, to be probable that in
case of the successful marketing Of the stock the
| present transaction will be followed by others.
No conditions in regard to future purchases of the
stock or the management of the road have been in
cnded in the contract 1t is purely a cash transac-
tion The owners Of the road have been induced to
! part with the stock III order TO share
with others the control of the company, be-
lievng that this divided control will add
to the value Of the property. Almost the entire stock
of the company has been held by the original build
ers-Leland Stanford, c. T.. Huntington, Charles
Crocker. C.. f. Crocker and Mark Hopkins. II is
said that they consented TO the sale Of n part OF
their stock IN the belief that public attention would
be attracted by this means to the value OF the prop
| erty.
! The members of the syndicate which has secured
| an interest in the Central Pacific Road are
1 IL.
& Foote. Kuhn, Loeb & Co.. Hallgartcn & Co.,
MAY & King, Marx & Co., ]. & S. Wormscr. Philip
Speyer d Co., Fisk g. Hatch. Brewster. Sweet d
Co of Boston. William X. Travers. August Rntten,
Morton, Bliss & Co.. Speyer Brothers * Co.
of Holland Russell Sage and Jay Gould. An Exc
cutivo Committee, consisting of K. +. Flower j..
| d. Prince and J. u. Probst has been chosen TO
conduct the affairs of the syndicate. The stock will
not be sold by subscription, but n portion OF 1T
will be offered early next week on the Stock
| Exchange. The stock has been on the list OF the
! Exchange for many years but the dealings in 1t
have been almost nothing for the rea-
| son that the stock held in few
hands. 1t is the purpose Of the COM
mittee TO make the stock one of the active stocks
on the Exchange. and to this end small amount
will be offered probably on Monday One
person who had been admitted to the syndicate
Yesterday sold his privilege at very large advance.
| 1t was stated by n prominent member oil
the syndicate that outside offers for n part
| of the stock had been made at q 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 the control of the
road These offers have been refused by the present
| holders OF the stock.
The sale to the syndicate, already stated,
will not result at present in any change
Itr
of the members it was said last evening
that union between the Central and Union
Pacific Railroads might be the ultimate re-
suit of the present SALE but it was adj
mittcd that there was nothing in the ex-
| istinp contract looking TO that end. Several
| years ago overtures made toward n consOlida-
ton of the two companies. At that time, it is said,
the Central Pacific would not consent 10 the proposal
on other terms than exchanging two shares of Union
Pacific stock for each share Of Central Pacific stock,
| and the negotiations were broken of. The
| admission of friends of the Union Pacific
and Wabash systems to an interest in the road, to-
getler with the recent combinations with the New
York Central, gives TO those systems q continuous
line from the Atlantic to the Pacific. These
companies are not all under one MANAGE
ment but persons largely interested in the
Wabash and Union Pacific roads have also
| an interest in all the roads forming the
continuous line. Their mutual interest in these
lines is likely to have important influence i'll fu-
| turc arrangements for the exchange of business
! The Central Pacific extends from San Francisco TO
! Ogden, where it connects with the Union Pacific.
| The building of the road was begun III
| 1868, and the whole line was opened to Ogden on
| May 10, 1869. The Union Pacific completed
on the same day. The length of the main line and
of the branches operated with 1t is n little over
| 1213 miles. The capital stock is 5f.275500, and
! tho funded debt exclusive of United states Subsidy
| bonds is $5G,391, 900. Nearly half Of This
| funded debt consists of early mortgages placed
Oh the sectional roads afterward consolidated with
the Central Pacific Road. In recent years the COM
| pany has paid dividends on IFS stock of per
cent. which have been reduced since the passage
| of the Thurman bill to per cent. In 1873
| dividends amounting to 10 per cent were paid.
| STATEMENT or J. u. PRINCE.
| When inquiry was made by q TRIBUNE reporter,
! last evening" of j. ID. Prince. of the firm
of Prince & Whtelcy, he said, with some little
! besitation
| "We bought of C. p. Huntington and his associ-
ates so 900 shares of Central Pacific at 75 with the
| privilege Of 10000 shares additional within six
| months at so. Mr.. Huntington ties up all the re-
manning stock, except some 40, 900 shares, which is
| a1oat, and very little of 1t will probably
| come on the market at any price below par. Among
| the original subscribers were Grant & Co., who
| had the privilege of 1,500 shares Of the first
| SO. 900, or 5000 shares Of tho 100000 They
sold their privilege of subscription to-day for
| 81 300 The object of the Syndicate was to intro
| duce the stock on this market but l am
| afraid we have not enough stock to do II
4 effectually. The control OF 1t was invested In