The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-10-23
. PHANTOM SYNDICATE.
ANOTHER PHILANTHROPIC SCHEME
OF THE WoRLD EXPOSED.

SSN NV
OF Their Partnernhip with PuiitSer-
The Deception was short-LiVod ana was
Exposed by Ono OF the WORLDS own Fakes.
Tho facts regarding tho pretcnsions OF the
Hon. Russell Sage, Gen. Samuel Thomas, ana
the World to rescue tho Union racine
Railroad property from n Wall street
"blind pool" and q gang Of corporation
plunderers." which are tho terms used
in yellow journalism to describe the Union Pa
ciho Reorganization Committee. camo to the
surface yesterday. Tho exposure resulted from
what appears to have bsen an error OF Judgment
on tho part OF tho Pulitzer members of the
alleged rcscuing syndicate.
Since tho beginning OF the week the World
has been making sensational allegations
regarding tho prospective profits OF the
syndicate that has underwritten the
Union Pacific plan OF reorganization and
which has subscribed $50. 000, 900 which
has been guaranteed to the Government as
minimum bid for its second lien upon tho rail-
road when it is sold in foreclosure proceedings
early next month. 1t is alleged that q much
larger amount might be obtained for the property
and has been asserted by the World that II the
Government accepts $50. 600, 600 for its claim
the reorganization syndicate will make $4,000.
600 or more out Of the transaction.
Tho World has backed up its assertions In this
matter with interviews with tho Hon. Russell
Sage and Gen. Samuel Thomas and has quoted
both as being interested in forming n syndicate
to outbid the Reorganization Committee.
Although the Union Pacific Company has been
in the hands of receivers for four years and prep
~arations for its reorganization have been under
way for more than q year, the two eminent finan-
ciers mentioned have. together with the World,
treated the situation as II it were an entirely
new one and had just begun to engage the
attention of the public. In common with the
World, they have advocated q postponcment
OF the judicial sale of tho various properties
composing the Union Pacific system. that
they might have time to form q syndicate
shat would pay the Government what they
have alleged to be the full amount due
it under the second mortgage. Regard.
ing this last proposition o1-United States
Senator Brice, the lifelong friend and
business associate Of Gen. Thomas, said yester-
day that the statement that Gen. Thomas and
Mr.. Sage were DESTROYS OF paying ten to twenty
million dollars more for n piece of property than
the seller was willing to accept, for it could only
appeal to the credulity of those who are I'M
acquainted with the character Of the two men.
The scheme to upset or interfere with the re-
organization Of the Union Pacific system
appears to have been of very humble
and disreputable origin. For nearly a year
past Wall street has been supplied from time
to time with rumors OF an impending
alliance or consolidation between the Manhat.
tan Railway and the Metropolitan Traction
companies. Sensational newspapers have never
4, failed to give prominence to these reports.
1t took the Street q little time to dis
cover their source; but it finally did
DO. They were based upon the unauthorized
Sut persistent, and at times nlausible. activity
Of one David Lamar. Little is known OF his
antecedents, but in some way he OBJ
N.-A ~. Ax- "a De
sell Sage and assumed to represent
certain interests in the Metropolitan Traction
Company. To others he assumed to represent
Mr.. Sage in an effort to sell the Sage and Gould
holdings of Manhattan Railway stocks to the
Metropolitan Traction Company or to some one
representing it. In due time every ono inter
ested in the two companies became thoroughly
conversant with Lamar's pretences.
Lamar appeared in tho Union Pacific sit
uation two week. or more ago as the COM
panion of United States Senator Foraker.
on the occasion of Q visit that the Sem
ator made to the office of Mr.. Sage.
What took place at this interview cannot be
stated definitely, but may DO inferred from the
fact that early this week. after the World
had begun its attacks upon tho Union Pa
cifc reorganization syndicate and had be-
gun TO call upon President Mckinley to
stop the steal" and to quote Mr.. Sage as be-
ing Of the same mind as itself in the matter,
young Foraker. who is his fathers private
secretary. called Mr.. Sage up on the long.
distance telephone from Washington and
asked the venerable fnancier to come to the
capital at once to see his father and representa-.
tives of the Government relative to the Union
Pacific sale. Mr.. Sage declined to go. and was
then asked to send some one representing the
syndicate which he had formed or was forming
to purchase the Union Pacific property.
Mr.. Sage, it is trustworthy reported. replied
that he had not formed any syndicate fol
that purpose. and did not know Of ono othel
than that formed by the Reorganization
Committee. These communications doubt
less enlightened some people at Washing
ton as to the character of representations thai
had been made to them regarding the World
efforts to intervene in the Union Pacific reor
ganization.
Several days before this telephone interview
took place one of the editors Of the World
was taken to Mr.. Sage's office by La
mar, and both have been seen Their
q number of times since. Another EN-
ployee Of the World has also been visiting
Mr.. Sage's Office within the last week. II
tho mean timo Lamar has been calling
upon various capitalists and institution
in Wall street and has represented
to them that Mr.. Sage was forminl
new syndicate to purchase and reorganize tn
Union Pacific property. and that he was author
ICED to represent Mr.. Sage in inviting them t
become members OF it. He interested in hi
scheme one Of his associates In a previou
undertaking., Jules S. Bache of the Stock ES
change firm of ]. S. Bache & Co. On Thurs
day Mr.. Bache prevailed upon the Pres
dent of one of the downtown banks t
writo a letter to Mr.. Sage requestin
participation for his bank in the propose
syndicate to the extent OF 81, % 900. Tn
directors Of that institution mado tho lii
Of their chief executive officer yer
miserable yesterday because of his III
fortunate zeal in behalf of his stockholt
ers; but his discontinue reached a china
when he called uTon Mr.. Sage to withdraw hi
letter and was told by that gentleman that h
was not interested in forming u syndicate q
represented by Lamar and his friend Bache.