New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-10-03
PRESIDENT ROBERTS TALKS.
PLANS OF THE PENNSYLVANIA ROAD
WANTING MORE FEEDERS ASo LESS COMPETITION
THE RECENT NEGOrIAIoN~.

WANTING MORE FEEDERS AID LESS COMPETITION
THE RECENT NEGOTIATIONS.
PHILADELPHIA. Oct 2.-At the hearing be-
fore Examiner Weiss to-day In the equity suits 10
restrain the sale OF the South Pennsylvania and Beech
Creek railroads to the Pennsylvania Company Pfes
dent George b. Roberts, Of the Pcnn7yNania Railroad
company, was examined. Hc was first spoken TO- he
said regarding the sale OF tn, South PcnnSvana road
about three years ago, when the road was projected by
by Mr. Twombiy aal Eeou Barnes, OF Ncw-lork. They
could come TO No agreement however. Continuing, Mr.
Roberts said
81 heard nothing further on the subject until two
voars ago waea was cIlled on by syndicate OF tie
owners of tbs south Pennsylvania road Andrew Car
nerie was one lIo wautel 10 know II the
Penusvlvania Railroad COmpJny would bug the
road told them that such purchase would be unNlsc
unless the line had better facilities for Western tT"'hc
Later NJ Vanderbilt told me that he was anxious to
retire from active railroad business, bnt that lac was
willing 10 let his investments remain. lie was prepared
IN sell out his interest n Pennsylvania railroads. We
parted with the understanding that hs son-ua"' Mt
Twolnby, would speak to me further on the subject
Mr. vanderbilt had large interests IN The Eeauing ihe
Y0ughoghcny and other lines. lie simply wanted 10 re-
tire from tho active management OF those lines.
The next phase OF the matter developed
through George j. MAGE, president OF the
B.cch Creek. / told him that his road
and IT, branches could be better managed and suggested
that they be turned to the Pcnusylyauia SYSTEM
fell IN with tAc proposition lhat was III I'oI'-
ary lss4 also suggested that the South Pennsylvania
road had better be lnclulcd IN tho project At subsc-
onent interviews General Magrc thought hc matter n
practicable. that ne had been mislcd aud would have
nothing more TO do with the proposition.
"On July T. j. Pierpont Morgan called on mo aud said
that he thought t necessary that somo understand
Ing should be hal among tho larger railroads
of the country with the view to securing rcmuncra-
tive rates Of traffic and TO securing har-
mony among tho lines told him that
the Pennsylvania Railroad would willingly agree to such
"A proposition. By tIe suggested plan the New-1ork
Central road to acquire the west Shore road III
order to prevent undue competition between New
York roads Railroads in the of construction In
Pennsylvania we're DC stopped by tho Pennsylvania
Railroad Company furnishing security at pr cent TO
cover the cost such roaIs Tho Pcnnsylvania Rail
road Company was at per cent all the cost
OF the South Pennsylvania road receiving In return all
| securities whatsoever held by that company.
| | saw Mr. Morgan again on his yacht. We
decided 10 meet the yacht that
| body would know where were ilaugAterl. third
meeting was held at Mr. Thomson's house at Merton,
Penn. There present General Magce Mr. Twomby,
Frank Thomson and myself In these negotiations was
acting as president Of the Pennsylvania Company and
| the Northern Central Railroad Company"
| "Thcn these gentlemen not speaking to Mr.
George b. Roberts, president OF the Pennsylvania Rail
road Company - poincdly asked tho Attorney General
NO you the conditions Of the transaction
such AS place II beyond the powers of Pennsylvania
Railroad Companys charter It interested only the
| Pennsylvania Company, OF which am
| also president Mr.. Twomby present
| TO carry ont Mr. Morgan's plans.
| told him that we-thc Pennsylvania Company
would be willing to take 60 per cent OF the securities
Mr. Twombly iDtnatcd that the Pclnsy!yania Rail
road Company, some other corporation equally good
should guarantee the Bedford aud Bridgeport CompaDys
bonds As the Beech Creek project the understand
Ing that to take the road aud It's securities
guaranteeing the projectors per cent MI IWombly
said Mr.. Vanderbilt owned largo interest in tho
Beech Creek Road and would undertake TO deliver 60
per cent OF nc capital stock provided he received
guarantee OF per cent Misunderstanding was that the
road should continue 10 be ~ OBSERVATION-DISCLOSURES coal
feeder for the New York Central This agreed to-
" What interest was this transaction To Tho PcnnsyL
| vania RalToddi" was asked.
"A prOvis OF the agreement" Mr. Roberts replied.
was that the limo was TO bo used rs asuppement 10 the
Northern Central IN bringing coal from the Clearlcd
vania system. New coal fields in the Sno wsoc region
were also expected 10 develop AID tho Beech Creek
would nc the cheapest route for us to transport 70 the
Il met Mr.. Twombly and Mr.. Morgan several times
and discussed the negotiations In n dcsultory way
Finally, general meeting OF those interested held
at Saratoga ana !, %1s aeGr'nCa @ 10 carry ont tho
amount OF So JGOO 600 were to be ndorsed by the Penn
syiyania Railroad Company the request Of tho Penn
| syIyania Company. This was ratified by the Boards OF
the Bedford and Bridgeport and Pennsyy yana railroads
The persons present at Saratoga were Mr. Dpcw of the
New.York Central; Francis L. steson, representing Mr.
| Vanderbilt; Judge Logan Franz lEomson, IT. Dimni' L,
and General Mdgcc Mr. Twomeiy spoke
for the eouth Pennsylvania and Beech Creek
roads There were no subsequent meetings
after the Saratoga interviews except those with Mr.
Morgan II clearly settled In nay mind as To
whether the transaction should akc only one road or
both the South Pennsylvania and Beech Creek roads.
Personally thought that the negotiations should In
| cludc both roads"
In conclusion, Mr. Roberts said that The stock OF tho
! Pennsylvania Company was owned by The Pennsyl-
Yana Railroad Company, except what IN the hands
Of persons 10 enable them 10 ait directors lie was
president Of the Northern Central Tho majority of its
stock held by outsiders and the rest by tho Penn
syvania Railroad. The entire capital stock was, he
thought, $G,5OOOOO, and Of that amount the Pennsyl
vania Railroad owned six-thrteeHths lie himself held
| 200 shares.
Joseph NJ Gazzam. OF this city, director OF the Beech
Greek road, next examined. lie considered tho
Beech Creek road much valuable than the terms