New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-11-10
THE LAKE ERIE CASE SETTLED.
SUBSTANTIAL VICTORY FOR THE WANDER
BILT INTERESTS.

Pittsburg, Nov. (specap.-Dr. David Hostetter,
died in New-York City without knowing that one
Of his pet railroad projects had been defeated. The
trust deed by which more than half OF the stock
OF the Pttsburg and Lake Erie road tied up
something In which DR.. Hostctter was d. ply
interested. He the only large stockholdcr who
adhered the trust. The vanderbllts assacd IT in
the courts and Dr. Hosctter defended It. Judge
Stowe declared the trust invalid, and II went TO the
Supreme Court Just before the to como
out, the counsel for the trust asked Dr. Hostetter
II they should continue the fight George shiras, jr,
the leading counsel and tho attorney who drew up
the trust deed, of the opinion that further
test useless. DR.. Hosettcr was then In New
York preparing for the operation, which resulted
fatally. He was emphatcaly In favor OF fight.
Tho counsel, however, finally decided not to argue
for the plaintiffs in error, and nollc proscqul
entered. Within short time after tho noe prosequi
was entered Treasurer Robinson. of the Pittsburg
and Lake Erie Company, instructed by John
Newell. as president of the company, to issue
certificates and to mako out tho new ones free Of
the trust obligations. representative Of the Van.
derbls appeared in the Office of the
day and presented the certificates for 10000 shares
Of trust stock and asked for certificates He also
presented a letter from the attorneys Of the 1rm
saying that the treasurer justified In making the
change.
The new certificates were at once made
out and thus the Vanderbilts have about fifty shares
more than half Of the stock, or absolute control
OF the property. Most of this stock is that which
was sold by ii. II. Oliver, Ir., the Plttsburg iron
manufacturer, 20 the Vanderbls. at S175 per share
he having obtained options on some Of II at $3.50.
1t has been said that Mr.. Oliver first offered this
controlling block Of stock, which contained about
5000 shares held by the Economic Society, headed
by Jacob Hcnrici, TO DR.. Hostetter, and that the
latter refused to pay the price asked for control
Of the company This is untrue 1t was the belief
of many stockholders that DR.. Hostctter intended
to sell out the control TO the Pennsylvania Railroad
Company II he could obtain It, and 1t was only
after giving guarantee not to sell 10 Hostctter that
the stockholders gave options to Mr. Oliver. The
Pttsburg manufacturer wanted TO be sure that the
New-York Central system would got the Lake Erie,
in order to put It beyond doubt that there would
be two competing lines to Pittsburg. The Wander
bits have 10000 shares Of the stock and Dr. Hos
letter had Is 900 shares The latter had 81 100000
of the bonds and about 5000 900 of the scrip, making
his Lake Erie holdings S3,0o000 lie also had |
from 100000 10 81 900 900 of Pttsburg, McKcesp0r
and Youghiogheny securities Thus the whole mat |
ter Is definitely and entirely settled IN favor OF the
Nanderbts. There Will be no change in the policy |
of the company, and few, II any, changes in the board
at the next election 4 new vice president will be |
elected TO succeed Dr. Hosetcr. but IT IS not known
VINO IL will be,