New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-07-24
PRICE THREE CENTS.
A BIG PURCHASE OF STOCK.
WILL THE vANDERBILTS HAVE A NEW
LINE TO THE SEA2
G. p HUNTINGTON SELLS 100000 SHARES o4
CHESAPEAKE AND OHIO sTocK-sUP- >, 1

POSITIONS AND POSSIBILITIES ~
II was announced yesterday that a sale oe
1 0o, 900 shares Of Chesapeake and Ohio common
stock had been made by G. r. Huntington I'd
Drexel, Morgan & Co., at s22 80 share. Tho
conclusions that were drawn from the transaction
were that the Vanderbilts had secured a southern
route to the Atlantic seaboard, which would
enable them to dictate terms on the Eastbound
grain traffic. 1t learned afterward that the
sale had been made two or three weeks ago, and
that the constant buying of the stock by the
the same firm In the past six months had changed
the ownership 1t could not be ascertained that
the deductions were absolutely correct The
result of the announcement was a sharp advance
in the Chesapeake and Ohio stocks as well as
those of the Big Four consolidated company.
IL asserted in some quarters that the control
of the Chesapeake and Ohio was past of that
consolidation scheme The principal basis for
this statement was the fact that the same man
is president of the Chesapeake and Ohio and the
consolidated Big Four companies Mr.. Hunting
ton said that he was about to give up his railroad
interests on this side of the Mississippi RiverI
because he was so much engaged in looking afte1
those beyond it,
well-known bear leader said that he was in.
clined to believe that the Vanderbilts had ac-
quired control of the line. Look at the chances,~
deal of business from the Lake Shore to the new
route, and by doing they might make Chesas
peake and Ohio common worth par. There would
| be big profit in the operation, for switches do
not cost much
| At the office of c. p. Huntington it was said
| that the appended interview, published by Wall
| Street news agency, was all that he had TO say:
/ sold 100000 shares of Chesapeake and Ohio
common stock for 81, 900 to Speyer d Co. D
do not know whether it was for DreXel, Morgan
Il Co. or not There some other parties trying
| to buy another 100000 shares from me. ex-
pect in time to sell out all my interests this side
of the Mississippi River, because my interests
west Of the river large that they take up
all my time. Nevertheless, propose to look after
everything l have east OF the river just though
/ did not intend to sell. L do not intend to sell
my interests at Newport News at present. l am
building there the largest shipyards in America.
| said some time ago that L would not sell my in-
terest in Chesapeake and Ohio until L had com.
pleted the bridge connections at Cincinnati That
has now been done. The outlook for Chesapeake
and Ohio is good. The location of the road is
the best in the country, running as it does from
the sea to the Ohio Valley right through country
| rich with coal, iron, salt and other mines. IL
| the road is properly handled and well managed 10
can be made to pay
| Extreme difficulty attended the attempts I'd
secure from Vanderbilt sources any positive state-
ment of purchase of Chesapeake and Ohio stock
by either Cornelius, William X. or George Vander-
| bit. None of the brokerage houses usually recog-
| nzed as those which execute " Investment orders
for the Vanderbilt family and their friends would
affirm that tise stock had been bought by any OF
\ the YandCrbilts. AZ the Grand Central Depot
little information could be obtained The state
ment was made that William X. Vanderbilt was
not in the city, although that assertion probably
depended upon the difficulty in definitely ascertain-
ing where he is at the exact moment OF inquiry.
He was in the city yesterday, according to this
statement of j. PierpOnt Morgan, who also is
the authority for the assertion that Cornelius
Vanderbilt was not in town, but would be to-day
| In consequence there no official statement
| available TO inquirers. The traffic officers OK
the Ncw-l crk Central were IN ignorance Oh tne
transaction, and could throw no light upon it,
| Vice-Presdent Hayden was so occupied WIN bis
ordinary duties in addition to those imposed by
his office chairman OF the JOINT EGecuuve
| Con n ittec of the trunk lines and their Western
connections that he was not inclined TO discuss
the questions of the possible bearing of such
| transaction upon the railway situation.
| J. Perpont Morgan, of DreXel, Morgan Il Coz
| declared that he had nothing to say about the
matter. He may be considered as admitting the
fact that his banking house was acting Tor tho
| purchasers when he said: "1Ou do not expect
me to tell the business do for my chents5whatt
investments they may or may not be makingT,
Mr. Morgan said that when transaction took
place which involved a change of relations among
the railroads the public was entitled 10 lnforma-
ton, but when the railroad situation was not az
| fected he could say nothing to the operations
of clients. Mr.. Morgan, while not denying tho
fact of the transaction or the relation OF his
house to it, implied in his remarks that IL dld noo
change the railroad situation.
A member of prominent banking house, sup
posed to be connected with the Vanderblts, said
q From all that | learn | am satisfied that the
stock has been bought not by the Vanderbilts. but
by the Vanderbilt interests. With this purchase
and what stock they previously held the Wander
biIt interest ought to have the control of Chesa-
peake and Ohio. What is the object of the pur.
chase? Why, to make the alliance with the Big
Four closer"
Would not Lake ShDre be unfavonably
affected" was asked.
mo" was the reply. 'Ths simply gives shs
Vanderbilts traffic that already exists. sup,
pose il will end in "A consolidation between the
big Four and the Chesapeake and Obio.' -.
The transaction was made through Speyer ID
Co. That firm simply acted as brokers. however.