New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-10-10
RAILROAD INTERESTS.
r SOUTH PENNSYLVANIA TRANSFER.

Il
TESTIMONY OF ANTHONY J. DRExEL AND HAMIL-
TON NIX TwOMBLY AS TO THE SALE.
PHILADELPHIA, Oct. 9 (Spec,dD.-The case
of the State against the Pennsylvania Railway Com
pany the matter of the transfer of the Beech Creek
and South Pennsylvania resumed In the Continental
Hotel before Examiner Weiss to-day. The first witness
was A. ]. Drexel, who was accompanied by John Z.
Built as his counsel He testified that he knew nothing
Of the Creek deal" but familiar with the
terms of the South Pennsylvania transfer In April Mr
Vanderbilt conversation with the witness, said tha
he would dispose OF his securities In the South Penn
sylvania in tho interest of peace and harmony
lie called Mr.. Roberts at the request
OF Mr. Vanderbilt The latter had instructed him as To
the terms OF the transfer he was to propose to Mr.
Roberts The terms we're security yielding three per
cent on the money invested Mr.. Roberts was at first
inclined think lightly Of the proposition. saying that
he was not anxious to buy hole in the ground The
next Mr. Drexl heard OF the negotiations was that MI
Morgan had taken up the subject MI Drexel SAID ne
believed that Mr.. Morgan represented nobody secretly
but had undertaken the settlement OF the Whoe Oh tue
trunk line problem.
Hamilton Mex. Twombly testified that the first nc
heard OF the south Railway matter was In
1881. His relations with the company were simply as
lender OF money to the syndicate. The loans were In
creased until the aggregate reached about $2OOOOO He
got the companys for the money thus advanced
When asked by Attorney General Cassidy what he got
for the notes Mr. Twombly replied 81 do not exactly
remember believe however, that they gave me cash.
In lending the money. he said that ne represented only
himself the syndicate was made up n follows Mr.
Vanderbilt, S5,0OO,O00; Mr. Diver, S5O0.OOO; ID. D.
MIA 100000; Mr.. Carnegie.S Fl 100000; j. G. Knight
100000; {. H. BOre, $500, OOO John N Hutchinson,
100000; +. H. Gowen. SlO0.OOO; Henry Lewes'
100000. For year he had beard OF talk OF sale
the syndicate subscr ptOns The south pennsylvania
sale not a sale Of The contract OF the road.
Tho syndicate subscriptions were GIL that was
sold. These subscriptions were made by the
syndicate formed for the purpose OF building the roa
About year ago some members OF the syndicate ex-
lVAa
lions aud 10 asked whether Mr. Vanderbilt would
be- willing TO dispose Of h- share. When Mr. vanderbilt
heard that there desire the part OF other sub
scriucrs get out he sgutcd his willingness 10 JON
them, provided he could get something yielding per
the money he had already putin Mr. Narderbits
never explained To the witness imagine, sad ne
that his primary object to make good Invest
mcnt and secondly TO help other interests namely the
Reading and the MckerSpJrt roads, anu tnat ne ohly
went into tho enterprise on condition that Mr. Sayrt
should b. elected president. which was done so far a.
the witness knew the settlement OF the trunk line dl
sale of the syndicate subscriptions. lie did
not consider the south Pennsylvania com,
pe.itor OF the PENNSYLVANIA Railroad, because II
went tDrnug.i an entirely different territory lherr
Is" he said an impression that Mr.. Vanderbilt sod
somebody out Nothing was ever further from thr
TRUTH lie could only sell his own securities and IN thS
South Prnnsyvania matter he did not consent to dF.
pose his holdings until other holders had been given
ihr opportunity TO get per cent security Per.
In the South PENNSYLVANIA except tuat
he was get S3O0OOOO worth OF
stock II the enterprise was success. by the terms OF
Mr. Morgan was 10 get TINS stock rms sa'
uf the south Pennsylvania was made by SIR. Morgan,
who entered into agreement with members or the
south Pennsylvania syndicate to buy their interests In
the syndicate ut certain valuation. All members oil
the syndicate given the opportunity OF Joining IN
the agreement. Mr. Vanderbilt aud other large holder.
signed Mr. Morgan The subScriners VINO ayr ed
to sell their interests t. him hond indemnyinS them
for any action which other suhscrlbers might take