New-York tribune., 1886-03-11
PHILADELPHIA'S SYNDICATE.
HOW COMPOSED AND WHAT IT is TO DO
HERE.

| IN PHlLADEI PHIA.
The proposed repeal of the Broadway Railway
chaIer as recon mended by the report OF In
Vestlgatlng Committee with a clause protecting inno-
cent stockholders is interesting I'm its application to the
fhlladephia syndicate Of street railway men who have
purchased the Broadway and Seventh Avenue Railway
ana Win all that there Is OF the Broadway Surface
Railway charter and franchise. These Philadelphia
Ihilanthropss and spectators claim TO be among the
principal OF the "nuocent stockholders" but they do
not set up whine and ask to te protected on con-
ray they they perlecty able 10 protect them
selves in their purchased rights and all appearance
they propose 20 do It by fighting the repeal Of the charter
and franchise in the They think 1t little hard
to have had to pay big price for franchise and then
hud long lawsuit attached with possibility OF having
to buy the franchise second time But they say they
are advised that reTeal by tho LEGISLATURE will stand
and the bill is passed in hase OF undue excitement
at Albany Mr. Conklings report they will contest
the Issue and carry it to the United States courts if
| necessary.
Mr. p A. r. widener passed through the city ysster-
day and talked for few moments only reporter.
He said that tho whole maer for his lawyers 10
attend to now that he had made the purchase oi the
/ controlling interest in the Seventh Avenue line. As
holder OF the majority Of the stock the Philadelphia
syndicate were determined to have accounting from
sharp FOshay and the Others that the money they
took out OF the Seventh Avenue Comp0ny's treasury
must be returned. IJ in that way he proposed TO
protect his friends aud himself
Although Mr. Wdener would not talk at length and
rather pooh poohed the idea :hat the public inter
ested In the purchase OF the road by his company
gentleman familiar with the past Of the Philadelphia
syndicate ana with its purposes iu New-York talked
moro freely in reply 20 various questions several
points in which the reporter thought the public deeply
interested
Did che Philadelphia syndicate aid sharp to obtain
| the 'ranchi 2" he was asked
They neither aided nor opposed him. They did not
! l. we 10 rat
1t direct they could 70 lease buy It outright from
anybody who got it. They opened negotiations with
both the active for he prize and eager
90 close with either party who the franchise sharp
got 1t and the Puladelphiaus came here on the com
pIstioN of the road close bargain with him. Tie
stock jumped away up as the road opened.
and Aen sharp broae OH all negotiations with WdeLer
! aud Eilins. They went back TO Philadelphia much
GsaI pointed at tie failure. They had failed IN several
previous efort3-lli business operations The posses
sion Of Broadway main stem absolutely
essential 70 the OF the Transfer system they
Ia developed it in Philadelphia"
AMI they put mp money TO go the franchise r.
The only money they have pa. up is that with which
they expect t. pay for the controlling stock the Broad
way and seventh Avenue And 1t was noJ until they
had ma this purchase and put this money that they
heard the in which shaIp got the franchise
sharp knew what coming and sold the control.
Wlleuer and EElus lid not know OF the niquiy which
had been pIacti,ed and the exposure OF which threatens
10 result eventually in the annument Of tue charter.
Having after long years and strenuous efforts secured
their ongc0y2te main stem FOR tIei transfer system
/ in New-Iori, WIIeuer AMI Ellins who represent
millions Of capital than they know how to invest
/ in Philadelphia, naturally alarmed lest sharps
frauds be made for viliang tie charter they
| had bought"
VINO opened the negotiations the sale Of the sharp
stock to Widenerl" :"
suarp's lawyers Mr.. WiIener insisted that all
should be- trln~fetrel AMI with many shares
would give the Philadelphia syndicate the control OF
the whole ne including the part from Union square
/ south. They finally Ofersd and a,ceI ted 5000
shares at $2S5, and 5000 at - 70. making total Of
10000 shares iJr F292JOO0 aud tue money 10 bind the
bargain is on deposit with DreSe Morgan * Co."
and II the legislature the franchise will they
! complete the purchase e.
Certainly They will not renqush the first footholi
they have been able to secure in New-YOrk"
DO they believe the Legislature will rescind r.
No; why shouldir! The road would have to be run;
your citizens woull not to Its stopping Il
would be- the political death OF any member o. the Legs
lature from this city stop the Broadway road
II would be plunged IN interminaOl litigation costly 70
the and to tho road. That primarily AMI possible
Political rOmlnenco the part Ot Mr C0nhlns Is what
some wyers a:atns the subject sire u be
the result. The company would cease paying the
S-C 900 year which has agreed to pay for the fran
chse. The lawyers would grow fat; the city and the
company lean; and Jake sharp would be master as long
Ae kept ont OF prison. The transfer system would
not be introduced tor years Your city would be injured
that extent directly. Indirectly 1t would suffer from
the odum which always attaches anything resembling
repudlatOu II very serious matter Tor any State,
city corporation tJ repudiate obligation even when
obtained by fraud. let the Legislature resclnd this
Broadway charter and the press Oi the whole
country outside OF this city will talk Of New York as
repuliating state. II is more serious matter than
/ w.
Legislature aunu this charter the ground OF fraud
The brbed and the btibers who perperated the fraud
ought 10 be punished criminally by imprisonment and
fine. But the franchise is valid one; legally granted
no matter obtained 1t hos been sold u Innocent
persons; and TO Iescnd IL would be 20 punish the
innocent holders by purchase Instead guilty
procurer7 by bribery, deprive the city OF s most val
liable road rob it OF $4,000 year aud put
1t 20 heavy legal expense"
Who are the Philadelphia syndicate r.
Old railroad men, teen In the business twenty odd
years They have Duilt up property IN that time worth
$I5.OOUOOO and paying well that they surplus
capital suffering Tor Investment. They own and lease
several lines and have immensely valuable stock Of
cars ho ses stables etc. Tuey carry j00OOOOJ people
every year and carry them in two directions over two
dlder4ut lines for fare FAat j. what they want to
do Instead OF being spectators they never sect
late in anything. Tney among the heayies pur-
Of horses cars, harness and the Ike Ill
the world. They buy immense quantities, for cash,
aud consequently can buy at the lowest rates and
heaviest discounts Tor cash The economies they are
thus enabled practise would be increased II they
obtain foothod here, fOi tner necessities would be
augmented and consequently tney would buy still moro
largely with Increased advantages, and without in-
creased expense in proportion. No, they could not
increase the OF here that regulated by law
at five cents"
Would they combine with Sharp r.
Never Their first step on completing the purchase
will he to begin against sharl and ohers 10 force
An accounting to the Seventh Avenue Company for the
money illegally spent as tic Senate Investigating Com
mttee is showing up"
VIII do they wish introduce the transfer s. stol0 II
they are 10 carry two fares Tor pTice ."
That the bid they make for business rhey use II
TO attract passengers tueir lines That Is why they
-L-. .rlr-l f-u- M o.