Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1889-07-25
THE CHESAPEAKE AND OHIO.
More About the Big Purchase of stock.

the New York Ir-ilnfHe OF yesterday saws:
II was announced yesterday that sale OF
10O.000 shares of Chesapeake and ono
common stock had been made by {. +.
Huntington 20 Drcxei, Morgan Co. at
$3.50 a snare. The conclusions that were
drawn from the transaction were that tho
Nanderbits had secured southern route
10 the Atlantic seaboard. which would en-
able them to dictate terms on the east
bound grain traffic. II was learned after
ward that the sale had been made two or
three weeks ago, and that the constant
buving of the stock by the same firm IN
the past six months had changed the own
ership. II could not bc GsceTtalned thatshe
deductions were absolutely correct. The
result of the announcement was 4 sharp
advance in the Chesapeake and Ohio stocks
rs well "a those of the Big Four" cOnsOh-
dated company. II was asserted IN some
quarters that the control of the Chesa-
peake and Ohio was part OF that cons0li-
datiOn scheme. The principal basis Tor
this statement was the fact that the same
man is president of the Chesapeake and
Ohio and the consolidated " Big Four "
companies. Mr.. Huntington said that he
was about to give up his railroad interests
on this side of the Mississippi river be
cause he was so much engaged III looking
after those beyond 1t.
A well-known bear leader said that he
bits had acquired control Of the line.
Look at the chances he said, gleetullv.
"Ihcv could switch good deal OF business
from the Lake Shore to the new route, and
bv doing so they might make Chesapeake
and Ohio common worth par. There
would be a big profit in the operation. for
switches do not cost much"
The TribaUse then gives Mr.. Huntlngton's
statement a. published i'll yesterdays DIS
patch and adds:
Extreme difficulty attended the attempts
to secure from Vanderbilt sources any
positive statement Of "A purchase of Chesa-
peake and OHIO stock by either Cornelius,
William X. or George Vanderbilt. None
Of the brokerage houses usually recOg-
nizcd as those which execute invest
ment ~ orders for the Vanderbilt family
and their friends would affirm that the
stock had been bought by any of the Van
dorbilts At the Grlnd-Central depot lit
tie information could be obtained. The
statement was made that William X. VAN
derhlt was not III the city, although that
assertion probably depended upon the DIFF
fculty in definitely ascertalning where hels
at the exact moment of inquiry. lie was
in the city yesterday. according 10 the
statement of J. Pierpont Morgan, who also
is the authority for the assertion that Cor
nelius Vanderbilt was not IN town, but
would be today. In consequence there
was no official statement available to IN
quirers. The traffic officers Of the New
York Central were in ignorance of the
transaction. and could throw nOhght upon
it. Vice-President Hayden was so Occu-
pied with his ordinary duties in addition
10 those imposed by his office rs chairman
Of the Joint Executive Committee of the
Trunk Lines and their western conncc-
tions that he was not inclined To discuss
the questions of the possible bearing OF
such a transaction upon the railway sltua-
ton.
J. Pierpont Morgan of Drexel, Morgan Il
Co.. declared that he had nothing to say
about the matter. He may Ice considered
as admitting the fact that ms banking
house was acting for the purchasers when
he said You do not expect me 10 tell the
business do for my clents-what invest
ments that they may or may not be
makingY" Mr.. Morgan said that when
transaction took place which involved
change Of relations among the railroads
the public was entitled to information,
but when the railroad situation was not
affected he could say nothing as TO the !
operations Of clients Mr.. Morgan. while |
not denying the fact Of the transaction or
the relation of his house TO IT. implies IN !
his remarks that it did not change the rail |
road situation.
A member of a prominent banking house, |
supposed To be connected with the VAN |
derbilts, said: From all that / learn | am |
satisfied that the stock has been bought, |
not by the Vanderbilts. but by the Wander |
bilt interests. With thispurchase and what |
stock they previously held the Vanderbilt |
interest ought to have the control of the
Chesapeake and Ohio. What is the object |
of the purchase? Why, TO make the al
lance with the Big Four closer
Would not Lake Shore be uufavorably |
affected?n was asked.
mo" was the reply. This simply !
gives the Vanderbilts traffic that already
exists. / suppose it will end in CONSOLE |
dation between the Big Four and the
Chesapeake and Ohio"
Thetransaction was made through Speyer |
& Co. That firm simply acted as brokers, |
however