The herald., 1898-12-28
Syndicate Schemes

NEW YORK, Dec. PA special to the
Herald from Havana says:
A four-cornered contest between rich syn.
dicates is now going on here, with the pos
session of Havana's street railways for
rapid transit purposes as the price. The con.
test has developed into three against one,
the Harvey syndicate having gained SO
great an advantage that the Others have COM
bined.
Should this combination fail there will
be organized, under the laws of New Jersey,
the Havana Street Railway Company, issu'
ing stock amounting to five million, and
bonds for three millions.
In the meantime, prosecution is threat.
ened against representatives of the Harvey
syndicate and the officials of the company
now owning the Havana street railways, the
civil authorities have avowed the intention
OF stopping what they pronounce bold
robbery.
The Havana street railways are owned by
the Ferrocarril Urbano Company, which
operates about twenty-five miles in all
These lines, which are equipped in Medley
al style, have never been developed. The
company has been robbed in various ways,
and yet it has paid to per cent annual
dividends on a capital of 81, 100000.
Tlburcio Castanada, representing an Eng
lish syndicate, made deal in November
with the directors of the Urbano Company
ID take over the property at eighty'five cents
on the dollar. Before the deal was consum-
mated, Percival Farquhar, representing the
Harvey syndicate of New Y ork, came to Ha-
vana and began very vigorous fight
that the Englishmen proposed consolida-
ton, which was accepted. After this con
solidation, it was thought best to raise the
offer for Urbano stock from eighty-tive to
ninety-two This offer was accepted, and
ten days was given for the money to be paid.
Richard Narganez, representing the Am
ericar Indies Company, filed a protest and
placed in General Castellanos hands IA
guarantee to pay par for the Crbano stock.
Tom johnson, the iron manufacturer
and former Congressman OF Cleveland and
BROOKLYN. who is associated with the Chi
cago capitalists, instructed his representa-
tive to raise the bid to l02 with a promise
to 20 higher if necessary. \ Havana banker
posted a million dollars to make good any
cfieE johnson makes.
In the meantime Canadian capitalists,
headed by Mckenzie & Co., Toronto bank
ers, promised to bid l25 for Urbano stock.
In spite of the higher bidding Farquhar
seemed to hold the whip hand for the Har-
vey syndicate.
Then the minority stockholders appealed
to Civil Governor De Castro, who declared
the alleged sale invalid and Illegal, prohib-
tied its completion and ordered public
sale OF the OrDanO company 10 De heiu 'e-
cember 30.
Segundo Alvaraez, president Of the Ur-
bano Company, who is a Spanish Senator,
defed De Castro, and said the sale would
be completed De Castro will issue proc
lamation saying that Alvaraez's Senatorship
will not save him from arrest if he signs the
papers of sale. Warrants for arrest are held
against Alvaraez's secretary, Pendas, and
Cerro, the attorney, who must complete the
sale for the Crbano Company, and Casten-
ada, Farquhar and Zaldo, who will sign for
the purchasers. De Castro will advertise
for bids for the rbano Company
Alvaraez and Castenada have taken the
papers in the case and gone to Nedado,
where they are not under Spanish jurisdic-
ton. As they must return to Havana to
sign the papers December 30, their arrest has
been ordered for that date.
If the Harvey syndicate succeeds in ac-
quiring the property the lines will be equip
red with modern electric plant and the
lines extended to Marianao Beach. where
a pleasure resort will be established. The
future earnings are estimated at one mil
lion dollars annually. The American Indies
Company is also making a fight to secure
the independent right to operate electric
cars in the downtown streets. Opposition
to this comes from the Harvey syndicate,
which expects to control all rights by means
OF its purchase of the Urbano Company.