New-York tribune., 1884-03-25
A DENIAL BY MR.. VANDERBILT
NO NEW ISSUE OF CENTRAL BONDS.

THE REPORTS IN WALL STREET WITHOUT FOUNDA
TIoN-THE COMPANY IN NO NEED OF MONEY.
1t was reported in Wall Street yesterday that the
New-York Central was about TO issue new bonds to
the amount of $40, ,000 900, to be called terminal
betterment bonds, and that an official announce
ment of the fact would be made in short
time. 1t was stated that the firm of Drexei.
Morgan & Co. would be at the head Of tho
syndicate with which the bonds would be placed.
William II. Vanderbilt was asked By TRIBUNE
reporter last evening If the reports were true.
"Oh don't you remember about those bondsp
Mr.. Vanderbilt inquired ironically. Il have heard
all about them several times In the last few months.
You must know about them, for 1 think that
heard IN December that they had then been
negotiated. Young man, you are trying now to SEQ
whether the stories agree.
"Well, don't you think that the report sounds
good deal like bear story as if it was gotten up
for Wall Street That is all it is at any rate.
There is not the smallest. foundation for it. Tho
Central does not need the money and, If it bad IL,
would not know what in the world. TO do with il.
We have all the money we want for any purposes,
no matter what they are. No. new mortgage OF
any kind has not been suggested even and is not
contemplated. The Central has a mortgage Of
$40, 100000 and it will not have another as long
as live.
We've got all the terminal facilities want
now, and if we make any improvements anywhere
we pay for them money. We don't run in debt
for them. We have spent 100000, in Rochester.
but we have paid every dollar of 1t in cash Tho
Central don't owe any thing and don't intend to
either"
HAS not the company considerable property now
covered by existing mortgages -
millions of dollars worth, not only in this city,
but all along the line to Buffalo. Why, If a pas
6na of ba has mi.
inquire to find out that it be.ongs to the Central.
| won't tell you how many millions of property We
own. because it might not be polite TO have ID
known, but 1T is enough
About this rumor Of new mortgage. I'll ten
you what il is People must have got the Central
mixed up with the West Shore. That company has
been talking about a second mortgage so long that
somehow people have got the idea that 1t Is the
Central that wants to borrow money. You know
that they have had me buying the West Shore ali
| the time and perhaps they think now that | have
| bought it and got mixed up about the mort
gage"
| Mr. Vanderbilt laughed heartily at his own ex-
| panation A friend who present suggested
that the new bonds were TO raise funds with which
| to buy the West Shore seconds.
perhaps that is it," said Mr. Vanderbilt; per
buy the West Shore bonds! There don't seem to be
anybody who wants them. and perhaps that is tho
! new plan. But guess tllat people nave only maue
| q mistake in the companies"
WHAT PRESIDENT RUTTER SAYS.
James H. Rutter, president of the Nev-York Cen.
tral Railroad COspany, was seen at his home, and
shown slip of the published report
"Let me answer these statements categOrically,'
said Mr.. Rutter "No issue of $20,000,O00 termi-
nal 'betterment bonds has been decided upon
| by the New-YOrk Central no formal an
| nOuncement' will be made to the Board Of
Directors, because there Is nothing to announce;
the bonds will not be offered to the pubc through
| q syndicate because, there being no bonds, there
is no need of a syndicate the proceeds will not bs
because they are not needed.
| with the exception of the extension Of the
! Grand Central Depot" continued Mr.. Rntter Z" tho
Central has all the terminal facilities 1t requires
and if the Legislature permits the depot extension
to be made it will be built without any issue Of
| bonds out of the earnings OF the road. The
company does not need any additionai
Of its locomotive force Is in reserve. The equip
ment is in good order, and the road itself in every
respect, never was in better condition. The com-
pany has made or authorized any Issue of bonds
of any kind, nor even thought Of it, aud there 10
| no likelihood of any issue of bonds for seven-
teen years, until the present ISSUES as reported
IN the last annual report, become due, In no Iora
sorry notes. The New-Y0rk Central has never
given a promissOry note; II pays for everything
| Out of its earnings or not at all These stories are
| made out of whole CLOTH
MR.. MoRGANs IGNORANCE.
]. Pierpont Morgan Drexel, Morgan & Co.. whose
he name was used ID connection with the marketing
of the bonds said shat the report the first that
had heard of the matter. IL know of no such syn.
| dicate he remarked, d" nor of any new issue OF
| bonds by the Central.
| Mr.. Morgan has been director of the company
| for several years.