Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-02-01
STOCKHOLDER M'KEE TALKS.
He Says the Road Would Not be Worth
Cent il the VanderbiIts Are Not i'm lib.
f. Jones Has His Say.


II. Sellers Mckee, the glass manufacturer,
who is also a heavy stockholder in the COM
pany, was seen at his residence in Allie
| gheny last evening, and asked what he
thought of the deal. He said:
"Why, we are completely foored at the
unexpected manner in which we have been
dumped. Do think that any persons will
be squeezed? No; Mr.. Frick is too honor
able man to accept more for his stock than
would be paid to his associates in the enter
prise in this city.
"Will the road ever be built?"
"No, don't see how it can under the ex-
listing state of affairs at the present stage of
the game. How can it? What good would
it do anybody? What would it be worth?
Why, l wouldn't give you a continental
cent for it without the vanderpilts in it.
"The road as it has been graded and sur
veyed, is supposed to run from Harrisburg
to Port Perry. / do not know how much
money has been spent on it, but it will
amount to a great deal. We have completed
three large tunnels, and guess they will
stand as they are. 1t was the intention to
connect with the Pemicky road at Port
Perry and find an outlet to the West via the
Lake Erie.
I'VE were to get into Philadelphia and
New York via the Reading road, and to
get these connections it was absolutely
necessary to have the Vanderbilts financial
ly interested in the new line. The Wander
bilts control the Lake Erie and Lake Shore,
and would have taken care of the South
Penn business. If the South Penn could
not 60 into Philadelphia via the Reading,
where would it get terminal facilities?
A BARREN PATH.
eff they could not get into New York
through the Jersey Central or Bound Brook
route where would they strike the city? The
Baltimore and Ohio road has almost bank
rupted itself trying to get terminal tacili-
ties in New York and has not succeeded yet.
"The South Penn road now begins no.
where and ends nowhere. In its path from
Harrisburg to Port Perry there are no towns
that could furnish business. There are no
manu- tacturing concerns that would give it
any decent amount Of freight Why you
might as well start a street car line from
one end of the Suspension bridge to the
other, and not allow it to get into Pittsburg
or Allegheny and expect it to pay as to ex-
pect railroad from Harrisburg to Port
Perry to do any business. To get con-
nections at both points it is absolutely
necessary to get the influence of the Van
derbilt family.
81 think the remaining Pittsburg stock
holders would be wise in selling out. 1
think that Mr.. Frick had the power of at
torney in the matter and could do as be
pleased. The Pittsburg stockholders could
all have unloaded three years ago for go
cents, provided they wished to. If we had
L. Iao
terest ahead of the game.
"The Vanderbilts will only lose s., 200, ,000t
That is nothing to them compared to wha
they might lose by getting into another rate
war with the Pennsylvania people. They
could not afford to fight the Pennsylvania
railroad people on a small matter like ST.
200,00O The latter might involve them in
something that would endanger the $780,
O00, 900 owned in the New York railroads by
the Vanderbilt family. What they would
lose on the South Penn would be only
couple Of months interest on what theyown.
MoRGAN's PART IN THE DEAL.
'Pierpoint Morgan played an interesting
part in the deal. He is heavily interested
in the Pennsylvania and Reading roads. He
could not afford to let the South Penn 20
over the latter's tracks, and this had a great
zeal 10 90 Win tne anuerDllt people let
ting it go.
"To sum the whole matter up, it's very
plain that the Vanderbilts are willing to
buy up all the paid-iD stock, and lose what
they have put in themselves, rather than
provoke the Pennsylvania road to hostility
The latter helped them in the West Shore
deal, and now the favor is being recipro-
Gated"
B. F. Jones, who owns considerable of the
South Penn stock, was asked what effect the
sale would have on the other Pittsburg in
terests in the road. He said:
81 do not see that it can have any other
effect than the total disbandment of the line.
have received no official information in
regard to the matter, but suppose that the
sale was actually made. The Pittsburg
stockholders will lose 40 per cent and the
interest on their money ior over five years,