Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-07-20

rivers and at West Newton, and provided
for an entrance to Pittsburg over his own
road, at that time approaching completion.
the Pittsburg, Mcheesport and Youghio-
gheny.
A GRAND TRUNK LINE.
Thus would be created grand trunk line
from New York's seaboard bv way of the
Reading and South Penn roads to Pitts
burg. and thence by Vanderbilt's Pittsburg
and Lake Erie railroad to his Lake Shore
system.
Under the new arrangement he put his
own contractors to work, the old dodge of a
construction company having been resorted
to, Mr.. Vanderbilt himself being the whole
concern. All the heavy cuttings and all the
tunnels were about three ourtbs dome. the
bridge over the Susquehanna was PRACTICAL
ly finished, and hence the heaviest and most
expensive work in constructing the entire line
was almost finished. The syndicate paid mn
81, SOC, 600. every penny of which was spent
on construction, iC is claimed The construc.
ton company claim that more was due the
contractors, and to prevent such reckless
loose and, as he claims, illegal assessment of
stockholders, Ralph Bagaley, in June 1888
brought suit In the New York courts for an
injunction and for the appointment of a re-
ceiver. The courts refused receiyership.
but prohibited any more stock calls. which
was blow at the construction comnanv
scheme.
HOW IT WAS SOLD OUT,
The difficulties between the trunk line
railways Of the country about that time
and the depression in their stocks. led tn the
proposition for peace between Vanderbilt's
railroads and those of the Pennsylvania
Railroad system. After months of dickar-
ing it was claimed that all the disputants
were satisfied that the West Shore Railroad
enterprise in New York State, and the
South Penn Railroad scheme in Penusvl-
vania, were the leading causes of disturb
ance. The Pennsylvania Company finally
agreed to withdraw from their operations in
Vanderbilt's New England territory if Van
derbllt would stop all his operations in the
territory of the Pennsylvania Railroad.
This meant that Vanderbilt was to sell ont
the South Penn Railroad to the officers of
the Pennsylvania Railroad. Vanderbilt
promised to do this.
For months 1t was an open question
whether Vanderbilt could deliver the goods
he had promised. He himself only con-
trolled through friends third interest in
the South Penn. But eventually he secured
the promise of majority of the stock to 90
with him over to the Pennsylvania Rail-
road. That corporation was to pay for the
property by giving longtime bonds at 8 per
cent The Beech Creek Railroad. in the
Clearfeld coal region, was to be delivered
to the Pennsylvania Railroad on practi-
cally the same terms, though at better fig
ures. When the dicker was just in shapejto
close. the minority stockholders, or the op-
ponents to the transaction, which included
most of the Pittsburg capitalists, headed by
DR.. Hostetter, raised such a commotion that
the public took notice of the affair as an
outrage. Ex-Chiet Justice Agnew wrote a Z
series of newspaper articles, denouncing it
as unconstitutional for the Pennsylvania
Railroad to buy up parallel line. 1t was
the attempt of monopoly to choke off com
petition.
BROUGHT INTO THE COURTS!
Attorney General Cassiday carried the
matter INTO the courts, asking for an injune-