New-York tribune., 1899-07-08
THE TWO ROADS NOT ONE
CLOSER RELATIONS, HOWEVER, FOR
PENNSYLVANIA AND CENTRAL.
PLANS OUTLINED IN THE TRIBUNE SEVERAL
DAYS AGO BEING CARRIED OUT.

the relations existing between the pennsylvania
and the New-York Central When The Tribune
, announced that A.. J. Cassatt. president Of the
Pennsylvania Railroad Company. had been at
the Grand Central Station in consultation with
officials Of the New-York Central and members
OF it's Board Of Directors the day that the
Boston and Albany lease approved, the
news was an "eye opener to a great many peo-
pie. The Tribune announced at that time that
the Vanderbilt interests in Pennsylvania are
now considerable, and that the relations be-
tween the two enormous systems were such
that the companies might be said to be operat-
ing practically as one The fact Of these cordial
relations and the generally accepted belief that
an understanding exists between the two lines
do not, however. Justify certain stories which
have found publication For example
port printed yesterday morning said that Will
lam X. Vanderbilt had purchased large blocks
OF Pennsylvania stock until he had become now
the largest stockholder in the company. and
with his friends was able TO control the road.
| This story found no confirmation in Wall Street
and was not credited anywhere. but s. r. Gala
way, president Of the New-York Central, felt
that a denial might be a wise thing. and yester-
day forenoon he gave out direct denial Of the
report that the two roads had under
control He also said that Mr. Cassatt's pres
ence in the Grand Central Station the day
of the Boston and Albany transaction was mere
ly a coincidence.
The denial Of Mr.. Galloway that the New
York Central had secured the PENNSYLVANIA is
accepted a matter of course. but the fact
stands that the relations between the two roads
to-day cordial to lead to a belief in
the financial district that a compact of some
kind, some strong sympathetic bond must
exist. The election OF A. J. Cassatt to the
Of no sylN- a,io hoe 70
the front official who believes in more
liberal policy than was followed ty his two i'm
mediate predecessors in the office. 1t is said
that he favOrs acquiring new property and
branching out. and that he also advocates in
creasng the dividend rate much the earn
inGs Justify. He is believed TO he heartily in
sympathy with the policy being followed by the
Central of absorbing all properties within reach
and to have a thorough understanding with the
Central officials.
William K. Vanderbilt has not bought the
controlling interest in the Pennsylvania. and he
has no desire TO secure control. II is declared
from an authoritative source. When Mr. Van
derbilt was abroad recently he and Mr.. Morgan
purchased some PENNSYLVANIA stock, II is
learned; but the purchase was far from being
a formidable amount Mr.. Vanderbilt is friend
~ TO Mr.. Cassatt, and any influence which he
may have in the road now or may acquire will
he given to the support Of Mr.. Cassatt The
cordial feeling between the two roads is all the
more secure account Of this.
The belief is prevalent. however. that the New
Haven will in time be swallowed up by the New
York Central. and that the programme mapped
out for getting control of this road meets the
hearty consent and cooperation OF the Pennsyl
vanias management. The Morgan. Rockefeller
and Vanderbilt interests in the New Haven now
are formidable and while c. p. Clark, the presi-
dent Of the road. and his associates in the pres
ent regime are working hard to prevent the CON
troll Of the road from slipping out of their grasp,
yet it is believed that Mr.. Morgan and his asso-
ciatcs can al any time they wish turn the
road TO the Central.
The understanding between the Pennsylvania
and the Central, including the reported plan for
the absorption Of the New-Haven. is taken as
indicating that these two huge systems intend TO
work in harmony in the future and divide al
the Eastern territory between them. Rate cut
ting is to stop. Small subsidiary lines are 70 he
taken in. and disturbing factors thus eliminated.
Cheapening competition is to disappear, and
absolute understanding to he secured which will
insure the maintenance Of traffic agreements
New-York Central and Pennsylvania both ad-
vanced yesterday in the stock market on the
reports of closer alliance between the systems.
New York Central opened 10 points up al
13a7s fuctuated between that figure and 130
and closed at 1897 net gain for the day Of
TX per cent Pennsylvania opened at 1873 2l3
points above Thursdays close. sold down TO
1865 and closed at 131. net advance OF ~
per cent.
Philadelphia. July (Special).-Through W. A.
Patton. his first assistant. President Cassatt
to-day denied the story published in New York
regarding the Pennsylvania and New-York Cen
tral railroads. saying that II undoubtedly ema-
mated from the fertile imagination Of stock
iobher The two companies. IL added. are
as much rivals as ever before. Mr.. Vanderbilt
did not have anything to do with President Cas-
salts election nor did the latter attend meet
ing Of the New-York Centrals Board of
Directors
| The story is too absurd" said another of
f1cial "to receive any consideration. There has
never been any thought Of consolidating the two
systems The statement is simply rehash Of
a story published some time ago. The New
York Central is practically family railroad
owned hv the Vanderbilts while there are thirty
thousa nd stockholders in the Pennsylvania Rail
road The relations Of the two companies are
rleasant but as the Pennsylvania Railroad is
connecting with the New York Central for West
ern traffic the interests Of the two roads are not
compatible and consequently consolidation or
amaIpamation would he out of the question"
Regarding Mr.. Cassatts presence at the Bos-
ton and Albany lease meeting of the New-York
Central directors il was explained that Mr.. Cas-
SAT- had made a personal call on President
Callaway Of the NewYork Central on that
dav but he had not been present during the
meeting of the Board OF Directors. The Idea
that Mr. Vanderbilt was instrumental In secur-
inc President Cassatt's appointment de-
MED as was also the statement that Mr.. Van
derbilt Is the largest stakeholder in the Penn
sylvania Railroad.
prPORTED CENTRAL PURCHASE.
no NeU