The Providence news. (Providence [R.I.]) 1891-1906, 1895-07-01
Undoubtedly an Outside Syn
dicate Owns the Road.
Receivership Put 1t on Its Feet With
Fine Prospects.
And Forced Purchase by the Threat
ened Vanderbilt Interests.
Special TO The News.


able report that pool made up of Messrs.
William Rockefeller, j. Pierpoint Nor
gan, III. Mckay Twombly, and other large
holders of Consolidated stock have Sc
cured so large a share Of New England
stock, common and preferred, that with
the backing of few small holdings they,
today, control the much discussed road.
The result may well be a matter of
congratulation for the enterprise, business
sagacity and fighting qualities of New
England's receivership and the reorgani-
zation committee that has worked unoer
its direction. And assuming the relia-
billy of the report, the deal is the most
noteworthy from many points OF view of
any railroad operation in the East for
good many years.
The common talk of absorption Of New
England by the Consolidated has, with
railroad men, been so far out OF the
question as TO be absurd, tor no one
knew the inconvenience, not to say the
impractica ability, of such an absorption
than the Consolidated officials themselves.
The sl25, 600 secured mortgage bonds held
by the Consolidated was only drop in
the bucket of g, 900, 900 and an absorp-
tion would only have resulted in a drop
in Consolidated stock. The new deal,
however, will bring the New England
road, that was rapidly getting into shape
? to seriously threaten the Consolidated,
into position of harmony TO the advan-
tage of both roads as the heavier stock
holders in each concern will be identical.
1t is not unlikely that Banker Morgan,
representing the Vanderbilt interests,
has long had his eye on New England.
When Charles Parsons was president of
New England an effort was made to pur-
chase from Whitney & Payne the New
York g. Northern Railroad, in order to
make a through line for the New York *
New England between Boston and New
York. 1t is well known.tha while Mr..
Parsons was negotiating for that prop
erty Mr.. Morgan stepped in and bought it
and promptly turned it over to the Van
derbilts, for whom he had acted, as he
had done before in acquiring Il he West
Shore and SO many other great proper
ties.
Mr.. Parsons gave up the effort to make
New York & New England through line
TO New York city and abandoned the
effort to put the road on sound basis.
Then came the era of McLeod's man
agement. Mcleod, as the dictator of
Reading, found that this company, which
was entitled to 21 per cent. of the total
output, was obtaining less than half of
that amount. He determined to seize his
share of the coal traffic by tremendous
coup In New Eng land territory. He
bought $1,000, 600 worth of Boston &
Maine securities and made himself the
president of the company. He sat the
same time acquired the control of the New
York d New England and designed to
use the power thus obtained to create a
market for Reading coal, and thus to
strengthen the great Pennsylvania corpor-
alton, which had been so long in con-
dition of chronic deficit and default.
Dipossessed of his authority in the Read
ing, Mr.. Mcleod was obliged TO retire
also from the Boston & Maine, but he
attempted to hold on to the presidency OF
NtN IOEh o ANtN ohN w NNNONO
himself TO that property. In that capacity
he acted with such energy that in Decem-
ber, 1893, he was on the point of complet-
ing all arrangement for the construction
of a new line from Brewster to the Har-
lem river, TO furnish the New York &
New England with its needed New York
city connection when receivership was
put into force, and he was driven out OF
power in that corporation.
Within two weeks after the appoint
ment OF the receivers Hon. Thomas c.
Platt Of New York and Mr.. Marsden j.
Perry of Providence, reorganization
plan was completed and brought out in
March. The plan was a startler to rail-
road men, and especially to any compet-
ing interests that were looking for a
final collapse OF the property. II proposed
nothing less extraordinary in railroad
affairs than an assessment OF go per
share on the common and s25 on the pre-
ferred stock to liquidate the floating in
debtedness, build bridges, improve the
Providence plant, and purchase new
equipment The proposition was re-
garded as preposterous, but II began to
work in lively fashion. The stock lay
fiat on the market, until, in few short
months, the railroad world walked up to
the fact that the New England road
was on its feet and ready to do busin IS
as It had never been before.
Then came the six months statement,
last January, demonstrating beyond q
doubt the resources OF the road, its won
derful development OF business and lis
ass ured prospects as lively competitor,
with its $40 miles OF track, its splendid