The evening times., 1898-12-27
SYNDICATBS AFTER
CUBAN FRANCHISES
Great Contests for Street Rail-
way Rights in Havana.
A FOUR-CoRNERED CONTEST
Capitalists Aiming to Develop
Rapid-Transit Systems.
Of EN- siish and Amer
lean COmpanies-Ciyil Authorities
Oppose Sales of Property.

Oppose Sales of Property.
New York, Dec. 27.-The Herald's cor
respondent at Havana telegraphs to that
paper under yesterdays date as follows:
A four-cornered contest between rich
syndicates is now going on here, with the
possession of Havanas streets for rapid
transit purposes as the prize. The con-
test has for the moment developed into
three against one, the Harvey syndicate
having gained SO great an advantage that
the others have combined.
Should this combination fail there will
be organized, under the naws of New Jer-
sey, the Havana Street Railway Company.
the company Issuing stock amounting TO
five millions and bonds for three millions.
In the meantime prosecution Is threat
ened against representatives of the Har-
yey syndicate and the officials of the COM
pany now owning the Havana street rail-
ways, the civil authroities having avowed
their intention of stopping what they pro-
nounce bold robbery.
The story is well worth telling. The Ha-
vana street railways are owned by tie
Ferro Carril Urbano Company, which op-
crates lines to Jesus del Monte, Castil O
dc Principe, Cerro and Vedado. about
twenty-five miles in all. These lines,
which are equipped in mediaeval style,
have never been developed. The company
has been robbed in various ways by those
who should have protected its interests,
and yet 1t could not be prevented from
paying to 8 per cent annual dividends
on a capital of S1.600000.
Tiburcio Castaneda, representing an
English syndicate, con1posd of Ruffe &
Sons, ]. w Todd. London Bankers, and the
Banque Internacionaie of Paris, made a
deal early in November with the directors
of the Urbano company TO take over the
entire property at 50 cents on the dollar.
Before the deal was consummated, Perci-
val Farquhar. representing the Harvey
syndicate, OF New York, came to Hayana
and began so vigorous fight that the
English syndicate proposed consolidation.
which was accepted. This consolidation
gives the English capitalists mentioned the
following American allies: G. B. NJ Har-
vey, of New York Hanson Brothers, bank
ers, of Montreal; Harry P. Whitney. son
of William c. Whitney; Senator Smith, of
New Jersey; F. s. Pearson, former chief
engineer of the Metropolitan Street Rail-
way and George V. Young. president of
the United States Mortgage and Trust
Company. After this consolidation it was
thought best to raise the offer for Urbano
stock from SIS to 92. This offer was ac-
cepted and ten days was given for the
money TO be paid.
Richard Narganes. representing the
American Indies Company, entered vigo-
rous protest and placed in General Castel-
lanos' hands guarantee to pay par for
the Urbano stock.
Tom" Johnson, the iron manufacturer
and former Congressman, of Cleveland
and Brooklyn, who is associated with Chi
cago capitalists, instructed his represen-
tative. Senior GuZman, TO raise the bid &c
102, with promise TO go higher if neces-
sary. Gelats. a Havana banker has post
ed a million dollars to make good any
offer Johnson makes.
In the meantime Canadian CAPITALISTS
headed by McKinzie & Co., Toronto bank
ers. took hand in the matter, and prom
ised to bid 125 for the Urbano stock. Sc
nor Penillas represents the Canadians
here, but in order not to miss any move
Mr. McKinzie came down to give the mat
ter his personal attention.
In spite of the higher bidding Farquhal
seemed to hold the whip hand for the Har-
vey syndicate, and was ably supported b;
| Theodore Zaldo, attorney and banker.
Then the minority stockholders appeal
ed to Civil Governor De Castro, who de-
clared the alleged sale invalid and illega
and prohibited its completion. In re-
sponse 10 reference to the Spanish law
which forbids government interference
with a private corporation except for the
first six months OF its existence, De Cas-
tro insisted upon his right Of veto an(
furthermore ordered a public sale of the
Urbano company TO be held December 80
Segundo Alvarez, president of the Ur-
bano company. who is a Spanish senator
and is supposed to be exempt from arrest
defied De Castro and said the sale would
be completed. De Castro will tomorrow
issue proclamation saying that Alvarez
senatorship will not save him from arrest
il he signs the papers of sale. Warrant:
for arrest are held against Alvarez secre
tary, Pendas, and Cerro, the attorney
who must complete the sale for the UT,
bano company, and Castenada, Farquhal
and Zaldo. who will sign for the purchas
ers. De Castro will tomorrow take it upoI
himself TO advertise for bids for the Ur.
bano company.
In the meantime Alvarez ana CaSteEadt
have taken the papers in the case ant
gone to Velado where they are not undel
Spanish jurisdiction and are thus out o
danger of arrest. AS they must return t.
Havana to sign the papers December 90
their arrest has been ordered for tha
date They have announced their willing
ness to go to prison. as it was expected
that De Castro would go out of rowe
with the Spanish evacuation. Inasmucl
as Gen. Ludlow has requested De Castrt
to continue in Office. their promised incar
ceration takes on a more serious aspect.
If the Harvey syndicate succeeds in &C
auiring the property the lines will b,
equipped with modern electric plant ant
the lines extended to Marianao Beach
where a pleasure resort will be establish
ed. The future earnings are estimated a
81 900 900 annually. The American Indie
| Company is also making fight to sscur.
the independent right to operate e,ectri
cars in the downtown streets. Opposition
| to this comes from the Harvey syndicate
! which expects to control all rights b,
means of its purchase of the Urbano com
pany.
AS the American Indies Company is cap
| itaIized at S1S000,0 900 and is organized b.
| P. A. B. Widener and William L. Elkins
/, of Philadelphia f. P. Dfcott, R. 4. c
| Smith and Thomas f. Ryan, of New York
and A. N. Brady, of Albany. the batt
| for supremacy promises to be of roya
proportions.