Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-02-01
THAT BIG SALE.
The Unloading of South Penn
Stock Causes Surprise.
SIXTY CENTS THE PRICE.
Will the Road be Abandoned or Will
it be Completely
PRESIDENT DEPEW'S OPINION.
BE Says the Pennsy Will Not Secure Con-
troll of the Line.
PRESIDENT DEPEW'S OPINION.
THE PITTSBURGERS NOT SQUEEZED


The exclusive publication in yesterdays
DISPATCH of the sale of the Hostetter and
Frick interests in the South Pennsylvania
Railroad to the Vanderbilts, and the proba-
BILE abandonment of the enterprise, caused
quite sensation in the city.
At first it was not believed, owing to the
meager details. Large manufacturing con-
Germs who do a great amount of shipping,
and who thought the completion of the road
a certainty, began to telephone the stock
holders who were known to be in the city,
and ask them if the statement was true.
The latter were almost as much in doubt
as were the inquirers, and could give no in
formation in regard to the matter. Messrs.
Jones, Bagaley, Mckee and Ferguson were
SURPRISED at the turn affairs had taken, and
did not try to conceal their astonishment.
"On Change" the brokers would not be-
lieve the report until kilograms came flying
from New York that the matter was true,
and the road would be abandoned by the
Vanderbilt people. On the strength of the
statement in THE DISPATCH, Pennsyl-
yania Railroad stock began to advance until
it had gone up 30 cents.
NOBODY TO BLAME, OF COURSE.
No blame is attached to any person in
this city for selling out. 1t was accepted as
a fact that the Vanderbilt family would Lot
build the road, and it was no use for the
Pittsburgers to hold on without them.
Messrs. Frick, Mckee, Ferguson and
Jones think the best thing that could have
happened to the road was done. They will
lose 40 per cent of what they invested and
the interest on the money they put in.
Whether the people living along the line
of the road, and who gave away valuable
ground, which has been cut up, will try to
recover damages is a matter of surmise.
Later reports received last night from
New York say the road will not pass into
the hands of the Pennsylvania people and
there is strong possibility that it will be
built. George Shiras, Jr., of this city says
the Vanderbilts will build the road them
selves.
The sale took place at the Office of Bangs,
Stetson & MacVeagh, Tuesday afternoon.
There were present Messrs. Stetson, repre-
senting the Vanderbilts, Mr.. Baer, General
Counsel of the Reading Railroad, also rep
resenting the Vanderbilts, Andrew Carne-
gle. H. c. Frick, d. II. Hostetter, and sew
eral Eastern stockholders When Mr.. Frick
left this city Monday evening last it was
with the intention of signing the new Car
nepie agreement, if tlfe Vanderbilts did.
Mr.. FrIck stated so at the meeting, but the
Vanderbilt representatives said nothing.
THE MAN WITH THE DOODLE.
Mr.. Stetson stated that he was ready to
offer 60 cents on thedollar to all stockholders
who wished to sell out. He said the offer
would be held open as long as desired. He
did not say who was back of him in the
matter, nol what the purchaser intended to
do with the road, but this was considered
unnecessary by Messrs. Bostetter and Frick.
Thev immediately took the offer and signed
the papers transferring the stock. 1t was
not stated BY Mr.. Stetson that if the offer
was not accepted the Vanderbilts would not
carry out their part of the agreement to
build the road, but this was the conclusion
jumped at
The total amount of stock subscribed for
was S15. .OOO. .OOO One-third of this was held
Of the stock was paid in by the holders, with
the exception o. Ralph Bagaley, who had
onlv paid in 20 per cent 1t is stated that
most of the money for the purchase of the
Pittsburg interests is being put up by the
Pennsylvania Railroad.
The following telegram received here late
last night from New York bears most vitality
on the question in point:
THE NEW YORK END OF IT,
man who is said to be thoroughly ac-
quainted with the facts of the South Penn deal
is quoted by the Evening Post this afternoon
as saying:
"When the West Shore settlement was made,
it was agreed that the Vanderbilt interests in
the South Penn should be handed over to the
Pennsylvania, but the courts intervened to
prevent this being accomplished and subse-
quent litigation involved the situation in diff
culties. These have been removed one by one,
and the last step, the purchase of the Pitts
burg interest, has been accomplished. This
amounted to between S3,00000O and 81. 100000
and the Nanderbilts have bought it out,
vested. In other words. the Pittsburg people
bear loss of 40 cents on the dollar and step
out Now the road won't be built unless the |
Pennsylvania want 20 do it Ny impression is
that an arrangement has been made by which |
the Vanderbilts will turn the property over to
the Pennsylvania in accordance with the plan
included in the original West Shore settle
ment."
President Chauncey NJ. Depew this after
noon is quoted by the Commercial advertiser
as saying that the reported acquisition by the |
Vanderbilts of the South Penn Railroad was
true, that the Vanderbilts had bought the
Pittsburg interest and now had control but
that no agreement whatever had been entered
into by them to turn the property over to the
Pennsylvania Railroad, and that it wouldn't
90 into the hands or under control of the |
Pennsylvania Company. MIR. Depew declined
to say what price was paid or the amount of
stock in the newly acquired holding.