Morning journal and courier., 1889-03-08
NEWS DY I0l0SfdpH FROM ALL QUARTERS. THE BIG RAILROAD SCHEME, A New Possibility of a
 Parallel Road. READY FOR TROUBLE AT PANAMA. Office Seekers Already at
 Work.
 FATAL FIRE IA KANSAS CITY. Financial Condition of the Reading Iron Works.
FATAL FIRE IA KANSAS CITY
THE BIG RAILROAD SCHEME.


 Possibility of Parallel Road-A New syndicate Formed With ssO,0OO,OOO CapitaI-The Control of the New York md Northern Railroad Obtain edit VIII be Consolidated With she New York and New England Road, Giving This Company Direct Route Between New York and Roston-The Projectors of This Scheme Also IR- terested in the New England Termi- nal Company.
 NEW YORK, March 7.-The Press says that ex-secretary Whitney, Col. Oliver H. Payne, Congressman James J. Belden, J. A. Bost- wick and A. M. Billings, the Chicago million aire, have formed syndicate with $6O, ,OOO,- 900 capital and obtained control of the New York and Northern railroad, which will be consolidated with the New York and New England road, thus giving the latter compa- ny a direct route between New York and Boston.
 This syndicate has been quietly at work for long time past on this scheme. There were many obstacles and many influential corporations in the way, but so quietly and so skilfully have the plans been laid that it is now stated that opposition would be practl- calIy futile This, as it now develops, is but portion of vast undertaking that if sue cessful will make the combination not rival but successful eraulator of the Standard Oil company. Indeed, appearances go, it is but an offshoot of the great oil octopus, for Bostwick is one of the controlling triumvirs in the Standard Oil company as he is one of the ! active spirits in the new combine.
 The story of how the problem was solved is not a very lengthy one. The connecting i. link between the New York and New Eng land at Brewsters, in Putnam county, and ] the Manhattan railway at One Hundred and Fifty.ffth street, is the New York and Northern railroad, the controlling stock of which was owned by the New York Loan and Improvement company. If the New York and Northern could be strengthened and extended eleven miles, to Danbury, Conn.,, and connection made at One Hun~ dred and Fifty-ffth street, then the New York and New England would have direct line to Boston. The Nav York and North ern was powerless of itself to do anything, although its receiver, Colonel Joel B. Err hardt, projected the scheme of the straight ening of the road and the extension. The New York Loan aud Improvement company was the first that had to be sorraled by the combination, and they did 1t quietly but with great promptness. Colonel Payne purchased $500, 1000 worth of it's stock. Ex- Secretary Whitney took over S20O, O,OO0 ln 1t, and the others bought blocks until they eventually were secure with a majority of it's capital stock of $3, ,000 in their own | hands. George M. Pullman, who organized ! the company originally, has some interest in | it still, but he has learned to look philossph- | ically on the upheavel Of affairs which has ! placed Mir. Whitney, Colonel Payne, Con gressman Belden, Millionaire Billings and H. E. Dimmick the president of the Metropoli- | tan steamship company, in five of the nine \ chairs which are set apart for the directorate l of the company. As most of the stock was | unostentatiously taken in at 50, the invest ! ment would appear of itself to have been | good, independently entirely of any ulterior purpose.
 ! The charter of the company, however, Is a | very good one, with extensive powers to con ! struct railroads and guarantee bonds and | dividends on stocks. Without question the | one stated above is the real object of the l syndicate in gaining the control of the loan ! and improvement company, and through that | of the New York and Northern, so that work
 may shortly be expected on the gap to Dan
 bury. It is estimated that the mill traffic l will alone pay the interest on the first and
 second mortgage bonds of the New York and
 l Northern, leaving the entire business of the ! Yonkers spur and all other earnings of the
 main road to be applied to the stock divi-
 ! dends.
 This is by no means, however, the end of
 the plan The projectors of this scheme are
 also the promoters of the New England Ter
 nina. company, which purchased the docks
 on the East river in connection with the
 Housatonic railway. That there will be
 plenty of use for these docks after the grand
 consolidation nobody doubts. This may ac
 count for the energy with which the Housa-
 tonic scheme is being prominently kept to
 the front now as well as explain the anxiety
 of some people to have the public credit the
 rumor that the New England will be leased
 ! to tha New York and New Haven road,