The Saint Paul globe., 1897-10-21
TO THE VANDERBILT INTER-
ESTS.
TWO YEARS SPENT IN DETAILS
aNIy CHANCE FOR DIsARRANGING
WHOLE PROGRAMME is FROM
OPPOSITION BIDS.
j. p1ERPoNT MORGAN HANDLES 1T.
Sufficient Stock Acquired to Put
Chauncey DeDew and Marvin
Hughitt in Charge.


sold on Nov l. under the order OF
United States Circuit Judge Sanborn'
it will pass into the possession OF the
Vanderbilts. At least this is the pro-
gramme which is said to have oeen
arranged by j. Pierpont Morgan
Chauncey NJ. Depew and Marvin Hug
hitt who are conducting one END OF
the deal
Coils P. Huntington is willing. SO
is President Mckinley and his caplnet,
before whom the details of the plan
have been laid. So are various United
States senators whose advice has been
asked under pledge of secrecy, on the
ground that they can rightly gauge
public opinion in the states they rep
resent.
The only possible obstacle to the sue
cessfuI carrying out Of the Morgan
Vanderbilt programme lies in the Offer
ing of opposition bids. But a dilemma
of this kind is not expected, as steps
have been taken to guard against II.
In the first place a cash payment OF
S32, 900, 900 is required, and men are not
running loose with this amount OF
money about them. Those who have
the cash have been carefully rounded
up by Mr.. Morgan and the man who
offers a certified check in payment tor
the Union Pacific road in Omaha next
month will be one Of Morgan's trusted
agents.
An interested co-operator in the pur-
chase, it is understood, will be Coins
P. Huntington, who holds big bunch
of bonds as collateral for loans, and
naturally wants to see how he IS TO
be taken care of. It is also intimated
that the passing of the Union Paclhc
into new ownership will result in closer
traffic relations with that branch Of
Mr.. Huntington's Southern Pacific sys-
tenn, which was once known as the
Central Pacific.
Besides all this, Huntington has some
money to invest, and this accounts for
his interest in the syndicate.
This syndicate affair is good thing
for the men on the inside. If reports
be true. it insures them a snug profit
Of Sc, 600, 900 for the handling of the deal.
This has no connection with the SINK
Ing fund transaction. 1t merely repre-
Sents the commission which the syndi-
cate men will exact for their efforts in
"f1nanciering'' the operation.
The story, according to Chicago
newspaper, as told by a United States
senator who has the confidence of those
interested, is as follows:
Two years ago the Vanderbilts began
to consider the advisability of getting
control of the Union Pacific as an out
let for their New York Central, Lake
Shore and Northwestern system. They
decided it would be a valuable addi-
ton and bring an increase in business
and revenues. President Cleveland
looked upon the move with favor. Here
were men who had the money to pay
the government lien and put the prop
erty in first-class shape. Moreover,
they were known as builderS-up of
railways, men who had always follow
ed the opposite of wrecking tactics.
J. Pierpont Morgan is the man who
handles all the big financial affairs in
which the Vanderbilts engage, and
Mr.. Morgan has the reputation of be-
ing a sharp financier He saw posi-
bilities, about $6,O0O,0oO worth, in the
transaction and was shrewd enough
to make sure of it by going
SLOW Carefully the Vanderbilt people
acquired an interest in the Union Pa
cific and were in position when the
reorganization scheme was adopted to
put Chauncey NJ. Depew and Marvin
Hughitt in control of the committee.
stockholders in shape to pay the
money required to relieve the road
from the government mortgage? The
Vanderbilts were, of course, but they
die not propose to furnish all the
money and let the rest of the security
holders share equally in the benefits
So Mr.. Morgan suggested he might
be able to raise q syndicate which
would supply the necessary funds-for
a consideration.
The security holders accepted the
proposition and Mr.. Morgan went on
and organized his syndicate. with the
Vanderbilts, himself and a few of his
rich clients who keep funds for invest
ment in his hands as the principal
members.
$50, 600, 600 which is to be paid to the
government and then finance" the
accommodation so the road will pay
them for their trouble.
President Mckinley has been in
formed of the proposal of the Van
derbilts to purchase the road and has
given it his sanction.
Moreover the pr0ject was discussed
at a cabinet meeting, and several of
the United States senators from West
ern and Northwestern states were
called into conference on the subject.
The consensus of opinions was that it
would be a good thing to get the
troublesome matter settled definitely
and the property put in strong hands.
Many things are promised in the
way of improvements when the Van
derbilts take the Union Pacific. This.
1t is said, was one of the things held
put by Morgan in urging his syndicate
scheme.