The daily gazette., 1881-02-23


WAS IT A Stock GAMBLING OPE-
RATION ?-The letter which we pub
lished in yesterdays late edition OF the
GAZETTE, signed by Col Il. S. McComb,
terms the transfer of the stock OF the
Philadelphia, Wilmington and Balti-
more 4. Il. TO the parties who .Pur-
chased, "pure, bald, speculation, nothing
else" Of couIse,-re know very little
about the arrangements of the parties,
or the motives which dictated their &C
ton. In reference to their action Gel.
McComb, in his letter dated as far back
as Friday, the 18th, says: "Haven aud
Garrett are to buy control of stock Of
p, W. d b. at 10, putting us all IN, aud
by working this market are to put it to
10O-we reaping the profit and taxing
chances in the future tor the manage
ment of the property which they are to
get with the control of the stock, now
Gould, understand, to be behind.
1t is pure, bald speculation, nothing
else"
1t appears from the extract quoted
that the purchasers were not to buy the
stock to get hold of the management of
the road simply; but 1t is Inferred they
were to bull the stock purchased at SO
until it could be sold for 500. This is
in plain terms what Is known as "stock
gambling" But to gamble requires two
parties and 1t seems there were two
+, parties in this case, for the sellers evil
IDENTIFY were aiming To get the highest
price for their stock. 1t had sold within
ten days as high as S74.25, about a
week before at S72.50; and on Satur-
day had sunk to $40. The passage of
The resolution unanimously on Thurs
day to give the Baltimore and Ohio
Railroad charter whenever 1t formally
applied for one, may have FASTENED the
sale of the stock. II appears that the
parties then all went to New York and
the sale took place the next day. 1t is
difficult to determine which party got
the better in the bargain. 1t seemed
only necessary for the b. & o. to prove
to the holders Of the stock oil the p.
w. ss b., that the former could obi ain a
charter TO cause them TO soil. But wbv
such haste? The stock of the p. w. &
b. was going down rapidly. If it was
pure speculation why not wait until il
touched a lower figure? This question
can only be answered intelhgently by
showing that another party was a bidder
tor this stock. That other party il
would seem were Messrs. Cassett and
Roberts, the representatives of tht
Pennsylvania Railroad. Here then II
the explanation of the high price
No doubt the latter party refused t.
give so much, and the B. & o. took th
stock which even President Hinckle
of the p, W. & B., now says was sold
1t is said that enough of this stock wa
transferred to give the b. Il o. the con
troll of the r., w. d b. Suppose thi
to be the case, the officers of tie latte
cannot be changed until the next an
naai meeting, without some mutua
agreement. But 1t relieves the B. * q
OF the necessity of building a new roa
and enables it TO secure the use of
nnQt ay ppllaUt ono a yaar - - - a..
than if it built a section Of another {
which it would only have a divide
control. Ii then appears that the 2
W. 81 B. may be under the present col
troll for nearly year and then the
q o. may take control and the Penr
sylvania Railroad may find itself In Il
unpleasant position 1t had held the
and o.
How will this change affect our ci
and State? This is the most interesti
question to our people. 1t is not like
to do us injury. Ia all probability d
same officers will be continued. Tn
may become far more liberal under Il
new management. Certainly the B. a
will have all the opportunity to do
us it would have if new road we
built. 1t could build grain elevators
the Chrlstiana and make coal der
there just as well. But the money Ii
was expected to come to the State by [
charter of another road may not be
ceived, nor may the work of buildi
be carried forward that many were G
couraged to hope for.
A few days may give us more inform
tion. Time may develope much IL
Is hidden. 1t may be that the Pen
sylvania Railroad will desire the adv,