New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-10-14
THE SOUTH PENNSYLVANIA.
}. pIERpoYr MORGAN TELLS ABOUT IT.
HIS TESTIMONY BEFORE EXAMINER wEIss-A
NnrADLE MELTING on his YACHT.


the inquiry into the negotiations connected with the
sale of the South Pennsylvania Railroad Company to the
PENNSYLVANIA Company has been conducted In Phliadel-
phia for some time held session IN this city yesterday
the taking of testimony This was done toaccommo-
date j. Pierp0ut Morgan whose evidence was desired
in the case. Mr.. Weiss accompanied by Lewis u
Cassidy, AttOrneT ~eBeral OF Pennsylvania; the
attorneys for the Beech Creek road Mr. Snodgrass and
Mr.. Omstead; George b. Roberts president, ana
Wayne Mcyeagh counsel Of the Pennsylvania Railroad
Company; John c. Butt, counsel for Drexel, Morgan
d Co.. and others Tho party assembled at the banking
house of Drexe Morgan Co.. but owing to the lack OF
proper facilities they accepted the invitation Of Francis
L. Setson avail themselves OF the rooms Of Bangs
Stetson, No As Wiamst where the meeting was held.
j. PierpOnt Morgan sworn and testified substan
TALLY follows:
When came from Europe IN June Of this year be-
satisfied that 1t was necessary that something
the lines and after conversation with various
ties here. and also with friends in London made up
my mind that the principal thing was 70 secure harmony
between the Pennsylvania Central and the Now-YOrk
Central. met Frank Thomson. vice presdent OF the
former and asked him what could be done toward bring
ing about settlement. 1t observed that there
we're two sores that had TO be heaedone the West
shore and lie other was the south Pennsylvania told
him thought from my conferences with tue New-IOrk
the West shore eff If the Peansyiyania was ready
to take the South Pennsylvania Mr. Thom-
son said he did not think the thing
could be done matters stood then. Mr.. Vanderbilt
having tit to go into Pennsylvania he did not
why tho Pennsylvania people should give him back his
money expended in the South Pennsylvania. Afterward
had an interview with Mr. Depev the subject OF the
West shore negotiations and also conYersed with others
OF course. the NewYork Central folks rcpudated any
idea OF responsibility for what Mr. vanderbilt might do
with his own money
subsequently, It being believed that sufficient nhu-
could be brought to bear Mr. Vanderbilt TO
induce HIM TO supply majority or more OF the south
Philadelphia That was early in July. / suggested
to MI Roberts and Mr.. Thomson that II the Pcnnsyl
vaua Railroad Company prepared to take the south
Pennsylvania for bonds any other security that bore
3per cent, assuming that the sum would amount 70
TO0OOOOO or over JloUght the thlns cOuu DC carIcd
through. Mr. Roberts doubted the policy the ability
Of the Pennsylvania Railroad Company, SUCH to buy
of or IN any way interfere Win what might Dc cohsld
cred rival roads. subsequently | arranged meeting
my yacht between Dir. Roberts, Mr. Depew, Mr.
Thomson and myself At that meeting there was piac-
tcaly an agreement reached on the pan as
ultimately carried out. The amount was to be ascer
tanned, the accounts were to he examined win Wow
to arriving Mt the cost OF construction or the south
ylvana Railroad and this cost was to be covered
by the security OF inc Fenns{Vaha company OF some
thing which should pass through that channel The
the subscribers should bear the absolute guarantee OF
the Pennsy vana Railroad Company. Having obtained
Vanderbilt and his associates, and carly IN Au-
gust the details of what was required to be
think the letter was dated August g. 1t then became
necessary to draw mp the papers MI Iwon0ly was
quired by Mr. Roberts could DO obtained. OF course,
until that was secured nothing could be done Mr. KoD-
purchaser and not have tho purchase made direct
BY the Pennsylvania Company As a nrm We c0nld hot
what what T' could to give the use use of my
Of one for the other and the papers that ON
the 2Oth " August the papers were praeuca settled
consisting contract for the Subscribers to
sign guarantee that the subscribers required from
me 70 protect them from any further calls from the pur
chasers or from any parties whom might transfer
the property. and agreement TO deliver all the prop
erty ana after having been through several hands IN
hey were ratified by Mr.. Roberts on August p.
Mr.. Cassidy at this point asked who prepared the
papers The witness replied that number Of persons
had 10 do with them and he gave the Of Mr. Stet
SON. representing Mr. Twombly; Mr.. Tracy and Mr..
Bulitt representing himself; Mr. D,pew, behalf Of
the New-York Central Ir. Dickson aud Judge Logan
Mr.. Cassidy-Was there anything said about getting
the business through speedily
Mr. Norguu-I do remember anything I'm particular,
nor I'm general when Ihayc business on hand think
is better TO have it done quickly That IS ny expert
O. Why ala you so on the yach;l A.-Bocauso IT
Q.-ihon IL WIS not for the purposcof having nobody
know what business You were engaged M Al DO not
mi ht have been 1Xed upon that place, but do not
know Of any special purpose IN view In that connection.
The witness was asked TO state the results arrived
90 the yacht, and replied:
The result was that Mr. Roberts expressed his willing
that the scheme should be carried out, provided
$50 per cont OF the subscribers OF the south Pensy-
eres FOR security bearing the guarantee OF the
Pennsylvania Railroad Company for3 per cont in,
had reason o believe could be DONE though OF course
O~WGat was Mr. Roberts to get-what security what
property Ale 10 eet 80 per cent Of the South
Pcnnsy vana syndicate for the Pennsylvania Company.
which understood owned OF controlled the lines west
Of FIttsbuIE
In reply inquiry as TO whether he ever received
anything IN the shape OF authority from the Board ot
Direction of the Pennsylvania Company the witness
said that received letter dated August o. signed by
Mr. Roberts a. president and he ao received the bonds
NJ the sdfOr1 and BrdgCpOrt Railroad Comnany which