New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-09-03
A LARGE RAILWAY PURCHASE

L.
THE CONTROL OF THE ROAD SECURED BY A sYSDb
CATE COMPOSED OF JAY GOULD. RUSSELL SAGE,
SIDNEY DILLON AND OTHERS.
The control of the Hannibal and st. Joseph Rail-
road Company was bought yesterday by q number
of men who have long been identified with tho
| management of the Union Pacific and
the Wabash railroad systems. Among them
are Jay Gould, Russell Sage Sidney Dillon
Frederick L. Ames and Washington f. Connor, Mr..
Gould's principal broker The absence Of Mr.
Gould from the city Yesterday did not prevent the
| completion of the sale, which had been under con-
sideration for several days These persons bought
at AZ practically the whole Of the stock Of
the company. which amounted, according TO tho
last annual report, TO 81 ,8S7 shares. They bought
about 10000 shares, As the preferred stock is only
$5Os3, 024 they secured at once the absolute con-
troll Of the company The negotiations leading TO the
sale were conducted By a prominent Stock Ex-
change firm which was involved. to some extent, in
the Hutchinson scandal q few months ago. II was
said yesterday that the head of the firm brought the
negotiations to sudden close by threatening to sell
on Monday the large amount OF stock which
the firm had been carrying Some of the other
brokerage houses had expressed unwlllingness
to sell at the offered price, but when he said that he
would offer on Monday all the stock which he held,
the others acquiesced in the sale readily Ii Is
derstood that the house was carrying about $4,000
shares of the stock.
The sale was made by brokers who have been
holding the stock for the last year for the account
of John r. Duff, of Boston. About year ago
corner" in Hannibal and ST. Joseph common
stock was developed, greatly TO the surprise Of
Wall Street The price of the stock jumped in day
from 06l2 to 1871 and the next day 10 900. After
ward il was held at 800 until the settlements had
been effected. Since that time the stock has been
slow OF sale, although the price has been main
tained steadily between so and 90. The head Of
the pool which created the corner" found 10
be John X. Duff. of Boston. A young man, he was
comparatively unknown before the elimination
OF this operation He had inherited from his father,
who died few years ago, large fortune estimated
| at $J,000,00O or S6,0O000O. Thus fortune had
been accumulated by the elder Dun In railroad con-
structi0n and 1t is said to be largely owing TO him
| that the Hannibal and St. Joseph road was built.
The corner" attracted public attention because 1t
was the first successful attempt of the kind since
the famous Northwest corner" nine wears before.
Among the sufferers James X. keene, who
promptly settled his short contracts at about $50.
| aud Amos L. Hopkins, vice president of he Wabash
Railroad, who carried the TO the courts. IL was
understood at the time that Mr.. HOpkus's sales had
| been made through Mr. Goulds broker W. f. Common
| A private settlement was made aiterward and tho
suit was dropped. 1t reported that Russell Sage
caught short of the stock but this Mr. Sage de.
MED. several broker firms were involved TO small
amounts, but the settlements they made were never
made public.
In engineering this corner" Mr. Duff accumu-
| lated nearly the whole of the common stock
the most prominent Wall Street houses. those who
are SAID to have consented to the sale yesterday
John Bloodgood & Co, Work Strong " Co, w. 4:
Hatch d Sons, and Stout Il Co., OF York, and
j. q. Bates ~ Co.. of Boston. The assent of
Hatch < Sons Is not certain, because tho
senior member of the firm is on his way home
from Europe and the next partner was out OF town.
The younger members requested that so FAR as the
firm concerned, the matter might remain open
until Monday. The firms named have been carry
ing Mr.. Dufts stock for about year Ii is under
stood that the price which they had adyancedon the
stock was something more than tne price at which
they sold. In addition they lose the interest on their
| advances for the year. The direct losses to Wall
Street supposed therefore to oe not large and
no firm probably Will suffer loss OF more than
Duff could not be ascertained correctly
yesterday. Mr; Duff himself refused
has not failed. The stock which was sold by his
creditors yesterday IS supposed to have stood him
in about Is. From this and the price at which the
sale was made ii Is estimated that his loss must
have been III the nelghbornood OF $3,OOOOOO
The disposition that is likely TO DE made of tho
stock is yet unknown 1t has been reported several
times In the last year that the Chicago, Burlington
| and Quincy Company was anxious to secure the
control and yesterday one OF the buyers SAID that
AT the time of this offer Mr.. Duff unable to de-
liver the stock which held IN his name and the
| offer consequently was refused Keicrnns TO the
dently has been trying TO shove Dun into hole,
and he has slipped out OF It,"
| Russell sage rubbed his hands geetully and re-
| marked: Yes, yes, Duff tired to corner US last
year. Well | don't know anything about Mr. Duh's
affairs You see he operated altogether through his
| brokers' We bought the stock of them"
| John Bloodgood SAID that be had nothing what
| ever 10 say.
| 1t was understood yesterday that a change OF
| management would be made next week. The pres
ent directors, VINO elected in November Vi last
| year. are MyrOn F. Bush Buffalo; H.. II.
| Cook, William Dowd, Horace Porter, Elihu Root,
| John X. Duff John Bloodgood, A. U. Gorham and
William j. Hutchinson. Mr. Dowd is president and
Mr Duh vice president
ala ~ tba an
| the Stock Exchange recently. The quotations nave
| been maintained at 90 Old and % asked. Before
| 1t was generally known in Wall Street yesterday
| that the company mad changed ownership the
stock was quOteu 43 bid. The drop from previous
| quotations Mas great that most OF the watchers
| vi the tape thougnt the quotation an error.
THE EXAMINATION or GUIIEAU'S BRAIN