Lancaster daily intelligencer. [volume] (Lancaster, Pa.) 1864-1928, 1881-03-09
PRNNsYLvANlAy PURChAsE.

lNTELLlGENCER WEDN.
PENNyYLvANlAy PURCHASE.
The PhilAdelphiA Wilmington Z Balti-
moro.
The road which yesterday passed into
the hands of the Pennsylvania railroad
consists of main line ninety-six miles
in length, from Philadelphia to Baltimore,
with a double track of steel rails. It was
formed on February 5th, 1888, by consoli-
dating the Philadelphia & Delaware Coun-
ty chartered April 2, 1881; the Wilmington
& Susquehanna, chartered in Delaware,
January Is, 1882 the Delaware & Mary
land, chartered in Maryland, March II,
1882, and the Baltimore & Port Deposit,
chartered March Z, 1882. The main line
was completed at cost of a, 185. 81, in
cluding the Schuylkill bridge, finished in
1888. It bought the New Castle &
Frenchtown and New Castle & Whining
ton roads, and merged them in 1876,
when it leased the Delaware rail-
road and its branches, 1901 miles
long, and operates altogether POI
miles, including its Port Deposit
branch from Perryvills. Its capital stock
is 911, ,572, $50 and its funded debt only
81, 753, 500. The latter consists of Q per
cent. convertible mortgage loan of $685.
500, due in 1884; registered 6 per cent.
for S7OO, 900, due in 1892, and sinking
It has been paying Sper cent. dividends
ings increased from 81, O05, 203 ir 1S77-7S
to 81, ,282, 178 in 1s7S-79, and to 81, 1886, 1877
in 1879 80. the financial year ending on
the 1st of November.
The price paid is s78 per share, the
shareholders also to receive the dividend
of % per share shortly to be declared by
the Philadelphia, Wilmington & Balti-
more railroad company. It is proposed to
bring the depot to Fifteenth and Filbert
streets, which will be the grand central
depot of the Pennsylvania company.
A Surprise to the Syndicate.
New York Sun.
The transaction was a surprise to rail-
road and financial men in this city, for a
syndicate of New York and Baltimore
railroad men and capitalists had closed a
contract with Nathaniel Thayer, one of
the largest stockholders of the Philadel-
phia, Wilmington & Baltimore company,
| for a sufficient amount of stock to control
| the road.
The syndicate was composed of John
w. Garrett, president of the Baltimore and
| Ohio railroad Jay Gould, August Bel
mont, G. G. Haven, John Jacob AstOr,
VIM. H. Vanderbilt and others. The con-
tract with Mr.. Thayer called for the deliv.
cry of about 10000 shares of the
stock at so per share on or before March
| Is. This is larger amount of stock than
Mr.. Thayer owned, but it is said that he
made the contract expecting that his
| townsmen and friends, whom he had in-
duced to invest in the stock when it was
at a low figure, would aid him by selling
their shares with his at the same figure.
| As the stock is issued in shares of the par
value of $50 each, the price per centnm
agreed to by Mr.. Thayer was 14O.
1t seems, however, that Mr.. Thayer over
estimated the cooperation OF his towns
men, for a committee representing $4,000
| shares came to this city on Monday after
noon, met President Roberts of the Penn
sylvania road, and before midnight they
had contracted to deliver him the 10000
shares at $50 per share. The contract
also binds the Pennsylvania company to
take from all holders of the stock such
shares as they may send in before April /
up to tho entire capital stock
Of the company, at the same
price, $50 per share. The par value
OF the capital of the Philadelphia,
Wilmington & Baltimore company is
81, OOO, 900. As it is not believed that
| any Of the outside shareholders will fail to
| accept this offer, in view Of all the circum-
| stances, the Investment will cost the Penn
sylvania railroad s19,2OO,OOO. This is
exclusive of the bonded debt of
the purchased road, which is $4,000, ,OOO
The Pennsylvania company will keep the
organization of the purchased road separ-
ate from its own.
A member of the sydicate said last
evening: "Messrs. Garrett and Haven,
who represented the syndicate, had re-
Trained from bidding up tho price of the
stock by attempting to make outside pur.
purchases, as they were advised that the
Boston committee was composed of friends
of Mr.. Thayer, and were eudeavOring to
secure controlling interest in the stock,
to assist him in carrying out his contract.
Messrs. Haven and Garrett knew that
this committee were accumulating stock,
but believed that they were doing so in
the interest of Mr.. Thayer. The COM
mittee, however, having secured a ma
iority of the stock, without permitting
MIR. Thayer to have an opportunity Of
purchasing. sold out to the Pennsylvania
board at $50 per share, an advance of So
4OO, 900 upon the price at which Mr.. Thay-
er contracted to deliver the control to the
syndicate. Considerable surprise is ex-
pressed that the committee of Boston gen.
tleVen composed in part Of personal
ffiends of Mr.. Thayer, and representing
many persons who had invested in p. W.
& B. stock at low figure upon Mr.
Thayer's advice, did not give him pre-
ference in the sale when they were
aware that he was under contract to the
syndicate to deliver to it controlling in
terest in the stock. Boston men are fond
Of saying that the Wall street broker will
sell out his friends, but the culture and
conscience of the Hub in this case did not
hesitate to refuse chance to Mr.. Thayer.
their friend, who had in his long and sue
ceSsful business career made millions for
many of those who sold him Out.''
1t was announced last night that the
Baltimore & Ohio campany has subscribed
"a, OOO. 600 towards building a new line
parallel with the Philadelphia, Whining
ton s. Baltimore, from Baltimore to Phila- |
delphia, at a cost not exceeding 81, 900, 900.
This new line will compete with the P.
W. & B., for local business, and in addi-
tion will take all through Western and |
Southern business of the Baltimore & Ohio |
system. It will take west all business con- !
the Jersey Central roads, with which com.
panies the Baltimore & Ohio has already
made a compact by which each company
- Al a..