The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1889-07-24
CHESAPEAKE & OHIO DEAL
The Sale of 100000 Shares by Coils
Huntington Causes No Surprise.
Yanderbilts-POssible Future Of Newport
News as Port-0ther Railway News.

NEW YORK, July 23.-The announcement
made to-day that G.. p. Huntington had
recently sold 100000 shares of Chesapeake
g. Ohio common stock created no surprise
and little comment on Wall street, for 1T
was generally understood that he had
arranged for the sale of all his railroad
property east of the Mississippi and would
devote himself to the management OF his
roads west of the Mississippi. The sale OF
the stock makes no change in the control,
as. under the reorganization plan, the
voting power Is vested in the hands of
Pierpont Morgan, j. G. Brown and George
Bliss as trustees until 1891. Mr.. Hunting
ton made the following statement in refer
ence to the sale: II have sold
100000 shares of Chesapeake 81 Ohio
common stock to Speyer g. Co. for
S2.5OO.OOO. / do not know whether it was
parties are trying to buy 100000 shares
more from me. expect in time to sell all
my interests on the east side of the Mlssis-
sippi, because my interests west OF the
river are so large that they will take up al
my time. L do not, however, intend to sell
my interests at Newport News at present..
am building there the largest ship-yard In
America"
One of Mr.. Huntington's associates said
that the stock was bought by Drexel, Nor
gan Il Co., but the members of that firm
decline to make any statement In regard 10
the purchase.
President Ingalls,, of the recently-organ-
lied Cleveland. Cincinnati, Chicago d st.
Louis road, is also president OF the Chesa-
peake d Ohio. and 1T is understood that
both roads will be joined into single sys-
TEN under his management. A very we'll
informed railroad man, talking of the
transaction this morning, said:
IL take it that it shows that the Wander
bits are looking to the new South as a
profitable field for investors In the near
future By acquiring the Chesapeake &
Ohio direct line is obtained to Louisville
AS far as Cincinnati is the natural northern
outlet for the South, the Chesapeake d
Ohio possesses the very great advantage OF
Newport News. New York is not the only
port in America, and the Vanderbilts are
looking far enough ahead to see this. Be
low it Philadelphia is too far in. and Balti
more is waiting for a canal to be cut across
the Delaware peninsula, and even then i
will only be ship-canal route. The frs
clear port at the edge of the Atlantic ocear
is Newport News. Sooner or later the lcils
land haul will break the backs of the rail
ways engaged in it.. For passenger ant
much difference, but for grain and othe
materials the shortest route to tide-wate
is bound to triumph in the long run. In
making this deal the Vanderbilts have
shown traditional shrewdness and fore
sight. They already possess the most north
ern Trunk line in the United States. Nov
they have put a girdle around their compel
itors on the southern side. Hitherto tn,
Baltimore & Ohio held this position, ans
was a standing menace to stable rate
on the Pennsylvania and New York Contra
systems. Now the Vanderbilt interests Cal
coerce the b. 81 o. into adopting a more rea
sonable and profitable policy. / do mo-
think there is any desire or intention OF
the part of the Vanderbilt party to quarre
with any other trunk line. But they will
be In position to meet any move mad
against the earning of fair profits by an
or all Of the lateral trunk lines"