New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-10-09
THE SOUTH PENNSYLVANIA SALE.
STANDING BY MR.. VANDERBILT.
WHY ANDREW CARNEGIE SOLD oUT-DR. HosTETTER

WHY ANDREW CARNEGIE LID oUr-DR HOsTETTER
OPPOSED TO UNDERHAND DICKERTNG.
HARRISBURG, Penn, Oct. S.-The first wit
ness to heard Examiner Weiss when the hearing In
the South Pennsylvania opened at the Court House
to-day was Andrew Carnegie of Pttsburg He detailed
the conversation between himself and MI Vanderbilt as
to the adylsabiity of building such road the South
vaua the result OF this conversation Mr.
Vanderbilt agreed TO subscribe 80 OOOOOO toward such
an enterprise if Mr. Carnegie and his friends would
raise half that amount. This they did, the witness
subscribing Sl,OOO,O0O and paying in S3SOOOO
in assessments When he first heard rumOrs % the sale
he saw Mr Vanderbilt and Mr. Twomby and discovered
that they were anxious to get out. This was good
while ago. The Ncw-York subscribers. notably ID. o.
Mills tired of paying in. Mr. Vanderbilt wanted
get his money out of the undertaking and abandon It,
This Ar Carnegie thought fair. Upon hearing some
months afterward that Mr. Vanderbilt proposed to sell
out for per cent guaranteed bonds the witness again
went to see him. At that time Mr. Vanderbilt declared
that he would not sell for than per cent shortly
aftcrward Mr. Carnegie went for iyewceks trip to
Europe and during that time he heard abso-
Iutely nothing OF what going with regard
to the SALE However, just as he was sailing
for homo his brother cablcd him from New-York that
Vanderbilt selling out for per cent and asking III
structons lie Immediately cabled 10 stand by Mr.
Vanderbilt witness considered that the latter had SOLD
out far too cheap, and believed be could have made
better bargain with President Roberts He himself had
nut I'm $3.50 600 expecting get money back doubled
and did like the idea Of getting per cent invest
ment instead However he considered that Mr van
derbnt hat acted wisely in selling He him
self withdrew because Mr.. Vanderbilt did. without
tho latters help 1t was to talk Of
building the road. lie considered that the control or me
south Indispensable TO the security OF
the Pennsylvania Railroad Company. IL possessed tue
only proper between Harrisburg ana PlttsDurg
and was thirty miles shorter between those points than
that OF the II built and I'm adverse hands
IL could not help being dangerous road 10 both the
PENNSYLVANIA and Baltimore and ONO. He declared
that he reap benefit In the way Ttlghts from
the Connesye region rs a consideration Tor gong
into the deal. 49,
EDr Hostetter OF Pttsburg the next witness. His
testimony chiefly interesting In bringing out the
capital and had paid in 100000 IN assessments,
witness also member OF the syndicate committee
February lS-J and never heard It's details until lde IN
the following July. he had Ia ked OF such road as the
south Pennsylvania 20 NJ. Vanderbilt year
before anything was done in the mat
impressed with the scheme Subsequently IL was agreed
to 20 ahead capital OF forty million dollars He
began paying IN his assessments In september $50 anu
paid In all - per cent on his subscription Inc STOCK
WAS naly 10 be issued when 20 per cent was pad
In This aftcrward changed to 80 per cent He has
knowingly transferred bis interest In the road TO
were Mcssrs Whitney, W. h Vanderbilt. TwOmby,
IIostetter and f. h. GOweu. Mr.. Dimmick was after
wards substituted for Mr. whitney after the latter got
into politics. Although no had attended oyery meeting
posed sale. Mr.. Vanderbilt and Dir IwomDly
seemed to conduct the negotiations on their
own hook and consult nobody witness also
described the Saratoga interview between hnseH anu
Mr. Lewis the one part, and Mr.. vanderbilt ana MT
Twombly Oh the other lie here told Mr. TwOnby that
the proposed Bedford and Bridgeport bonds were Illegal
and worthless. Mr. TwomDly ana not appear TO thihK
So Witness opposed to underhand dlckering all
IN through