The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1893-02-06
THE ROAD WILL SELL.
Getting Rid of All Interests
Outside Of the Big Rail-
road System.
RUM0RS OF DISSATISFACTION
1t is Said That Minority Stock
holders Fear a Freeze-out
By the Big Company.

The minority stockholders of the Jer-
sey City and Bergen Railroad Company
are awaiting with no little anxiety the
result of a meeting of the Pennsylvania
Railroad Directors. which is to be held in
Philadelphia on Thursday of this week.
The cause OF their anxiety is prospec-
live Change in the management of the
= quence of projected sale of the
Pennsylvania Railroad Company's hold
ings in the road. 1t has been understood
for some time that the Pennsylvania
Railroad Company has been gradually
getting rid of its outside interests with
view of devoting its exclusive attention
to ths vast steam railroad system which
it controls. It's interests in horse rail-
roads in Newark aud Trenton have been
disposed of. and now negotiations are
pending for the disposal of its stock in
the Jersey City and Bergen road.
There are three syndicates willing and
anxious to get control Of the road. One
is composed principally of Philadelphia
capitalists, another of Newark men. and
the third is located in New York. 1t is
natural to suppose that the valuable
property will be disposed of to the highest
bidder, but that is just what the minority
stockholders are afraid of. They
have a suspicion, whether well founded
or otherwise is yet to be determined that
the Philadelphia syndicate has sufficient
influence at court to be specially favored
The Philadelphia capitalists are closely
tk-% - ~
sylvania Railroad Company. This, the
minority stockholders fear, may lead to
the eonsummation of negotiations which
will not be for their interest.
THE THREE sYNDICATEs.
The competing syndicates are the
the Philadelphia Traction Company.
represented by Stephen B. Elkins who is
associated with Mr.. Weidener and others;
the Metropolitan Traction Company, Of
New YORK; and Newark company in
which A. Q. D. Keasby, of Newark;
Amos Clark, of Elizabeth; B. f. and j.
M. Stanley the wealthy contractors, and
others are interested. Fl. B. Hollins &
Co. of New York are interested in one of
the syndicates.
A representative of THE NEWS talked
with Mr.. C. B. Thurston. President of the
Jersey City and Bergen road, this after-
noon.
ait is true" Mr.. Thurston said, "that
negotiations are pending for the sale of
the Pennsylvania Railroad Company's
holdings in the Jersey City and Bergen
road. do not know what price has been
offered, and am not at liberty to tell who
the competing bidders are as 1t was
given to me in confidence. The Pennsyl-
vania Railroad Company has recently
been pursuing the policy Of getting rid
of all its outside interests. You know it
sold out its stock in the Newark and
Trenton horse railroads. Money will buy
almost anything, and there is no reason
why the Pennsylvania Railroad Com
pany should not sell its stock If
it gets its price. The company
owns fourteen shares more than half of
thee capital stock, which is million
dollars. The last sold brought $3.50
share. We have been paying ten per
cent. dividends. / should think that such
a Iarge.block of stock as the Pennsylvania
Company purposes to sell would bring a
large Price. The company, under
stand, intends to protect the
interests of the minority stockholders. Ii
Will be argued that the stock held by
the minority Will be bought in by the
purch asing syndicate at the same price
as the Pennsylvania Cempany's stock.
that is If the holders desire to sell. Ii
they do not care to sell, they can, of
course, retain their stock. l am assured
that there is to be no freezing out. OF
course you understand that the pending
NAV be no change In the control OF the
road.
WANT TO RETAIN THURsToN.
81 cannot say whether l am to remain
In my present position or not. The new
controlling interest, if sale is effected,
will elect it's own directors at the next
anuual meeting, and directors will elect
officers, | have not been consulted
about the matter although / understand
that one or the sYndicates put in its BID
with O proviso that was to retain the
management. I would not care to re-
main, however, except with the under
standing that would be permi tied to
carry out my plans for giving the public
improved service"
Mr.. C. c. Zabriskie, the banker who
owns stock in the horse railroad COM
pany, said he did not know what the
minority would do In case the Pennsyl-
yaaia Railroad Company sold its cOntrol-
ling interest in the road. The minority
propose to keep their eyes open and await
deyelopements. II the proposed sale is
made, all the stockholders will have a
vote at the annual meeting. and 1t will
require two thirds OF the stock TO ratify
the sale The new concern can control
the management of the road, however,
without such ratification. No stockholder
is Obliged to sell his interest.
It is understood that there is strong
feeling among the minority stockholders
that some sort of deal detrimental to
their interests is about to be consum-
mated and they propose to keep on the
alert. The courts, they say. can be re-
sorted to IL the occasion arises.
SCHEMES OF THE N. j. TRACTION co.
It was rumored That the New Jersey
Traction Co. was also in the deal. but
President Barr, who lives In Newark, and
Mr.. C. B. Thurston of this city, who is
stocKholder, say that such is not the case.
Another gentleman, who has inside in
formation, said:-"As I understand it,
The present plan Is TO get con-
troll of all the lslreet car systems
from Jersey City, Newark, as far as
Paterson. Passaic and also the towns of
Essex County. Here is q district ad-