St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1889-10-31
IN VANDERBILT'S CLUTCH.
The Alton Has Been Gobbied at @
Big Price.


NEW YORK, Oct. 3O.-The Vanderbilts
have added the Chicago & Alton rail-
road to the vast system which they now
control, the mileage of which is put at
q, 100. 1t is understood that about S222,-
100000 was involved in the transaction,
report putting the price paid per share
at S14O. The Vanderbilts were not
in the purchase, although they
contributed about half of the
purchase money, the remainder be-
ing supplied by their recently
acquired associates in the Union Pacific
railroad. j. PierrepOnt Morgan is cred.
tied with having "put the thing
through" The papers will be all signed
in few days and the independence of
the Chicago IL Alton road, which has
sometimes caused uneasiness among the
other lines, will cease, and the $40 miles
which its tracks cover will complete the
system which now extends from ocean
to ocean and from the lakes to the gulf.
The reported sale of controlling in
terest in the Chicago & Alton railroad,
following closely upon the combination
between the Union Pacific and Chicago
Il Northwestern companies came as a
SURPRISE TO WALL STREET.
The facts, as published, are vouched
for by member of the bankers syndi-
cate that was concerned in forming the
railroad "gentleman'S association" last
winter. j. PierrepOnt Morgan was not
at his Office to-day and his partners re-
ferred inquirers for information of the
transaction to him. 1t is a Well-knOwn
fact that the Alton company entered
the railroad presidents association,
which was organized at j. Pierrepont
MOrgan'S house, with considerable re-
luctance, and was at no time enthusias-
tic over the effort then made to adjust
differences. When, in the course of
time. the AtchisOn. Topeka and Santa
Fe company claimed the right to carry
all its freight beyond Kansas City,
without breaking bulk, the Alton, which
had before then received large pro-
portion of such freight, protested
against the Atchis0n's claim and ap-
pealed to the association, The decision
was against the Alton, and the company
at once withdrew from the association.
The road had always been conservative
in its management. and was loath to be-
come rate disturber, but its position
was such that it must either begin a
fight for business or lease or sell out to
some other company. The Atchison
finally made an offer
TO PURCHASE THE CONTROL
at 1925 per share. The proposition was
not satisfactory to the company. and
the negotiations fell through. Then
the Union Pacific, in contemplation Of
its deal with the Northwestern, offered
$40 per share and the Alton accepted.
1t is said that President Blackstone and
Vice President McMullen, of the Alton,
and their following, hold Or control the
c.f ~ sfA Il
livery on the consummation of the deal,
while the balance of the stock is widely
scattered. Chauncey M. Depew, at his
Office i'm the Grand Central railway sta
ton, did not seem disposed to admit the
full effect and influence attributed to
the transaction. He said:
There has been no transfer of the proprie-
tary interest in the Alton system so far as
know; nor, as am informed has there been
any operation like consolidation. / under
stood that traffic arrangement similar to
that negotiated between the Chicago & North
western and the Union Pacific organization
has been agreed upon. The newspapers
have been induced TO make too much Of the
matter.
Mr.. Depew, however, was not pre-
pared to deny the importance of even
permanent traffic arrangement between
such commanding railroad companies.
DENIED BY BLACKSTONE.
CHICAGO, Oct. 30.-PreSident Black
stone, of the Chicago & Alton, said eff
forts were recently made by the Big
Four syndicate to close traffic agree
ment with the Alton, but none of the
plans proposed were acceptable to Pres
ident Blackstone, and the matter has
been dropped for the present. There
has b cen no offer to buy the Alton.