The times., 1899-07-08
THE RUMORED RAILWAY DEAL
Relations of the PennsyIvania With
the New York Central.

the New York Central.
New York, July wall Street today
received with considerable skepticism a
| report that by reason of the steadily in
creased holdings of W. X. Vanderbilt and
his friends in Pennsylvania Railroad
stock, the control and direction of the
Pennsylvania had become vested in New
York Central interests, and that the two
systems would enter into such relations as
would in time make them practically one.
The story as put out today hinged on the
attendance of Pennsylvania's President at
the meeting of Central directors called TO
act on the Boston and Albany lease, and
stated also that the selection of A. ]. Cas-
satt over the head of Vice President Green
to succeed the late Frank Thomson was an
evidence of Mr.. Vanderbilt's control OF the
situation.
The feeling today among those compe-
tent to discuss so large a subject in the
railway world was that the published
story, while having considerable basis in
fact, had drawn from these facts conclu-
sions which are not at present 1ustifable
by any means. II is readily conceded by
those in position to speak that Mr.. Van
derbflt and his business friends have Of
late years interested themselves more and
more in the Pennsylvania Railroad Com
pany, partly through the intimate rela-
tions both that road and the Central had
with the house of j. P. Morgan & Co. and
its clientele, and partly because the es-
tablishment and maintenance of these re-
lations between the two leading systems
of the country was the strongest possible
bond in perpetuating that stability in rates
which is the source Of the greatest good to
all the railways. With the strongest act
ing upapinity If iS felt hv "a on
that any disturbance of rates by the weak
er trunk lines would be impossible and
10 this extent the talk of coalition is cred
tied and approved. Further than that
however. 1t is said there is no warrant for
the report at present.
In token of the reiteration, and as signi-
flying the appreciation OF the cordial rela-
tions existing, the shares of both COM
panies on the stock exchange today sus
tained further advances. New York Gen.
tral, closing last night at 1873 3S, opened
this morning at 139 rs, though later re-
acting to 139. Pennsylvania opened 1 1-2
points higher at 1877, and sold to 13S in the
first hour, reacting subsequently to 1876 5-S
before recovery.
There were no official statements obtain
able this morning in discussion of the
latest report on Central-Pennsylvania re-
lations. President Galloway, OF the New
York Central, when asked about it, made
perfunctory reply through his secretary
that his only knowledge in the matter
came from newspaper stories. Others N
official position were equally non-commit-
tai.
In an editorial article today the Rail
road Gazette" refers to the Pennsylvania
Railroad and the Central-Albany lease as
follows:
The interchange of traffic back and forth over
the two roads (New York Central and Boston
and Albany may not be any closer greater
in volume than it has been in the past, but
the certainty of the continuance of that inter
cnange is worth good deal. The great rival
Railroad. and the Pennsylvania Railroad is liable
time TO have close and strong alliances
in New England, and it is not amiss for the New
York Central TO have its own strong New Eng
land system. In fact, the New Haven road and
the Pennsylvania already allied, as far as
freight and passenger rates are concerned, on
such a solid foundation Of mutual interest that
the Central may for all practical purposes con-
slider them almost road 1t may be
sumed that the New Haven, getting a better
st-bound freight business from the Pennsylya-
MIA than it does from the Boston and Albany
with its numerous north and south lines it con-
tinues TO do large interchange traffic with
the Boston and Albany for and from points west
OF the Hudson River, already favors the Penn
sylvana heavily on west bound; but that does
not prove that it would not be able to, and
actually would, take a great deal more away
from the New York Central il it owned the Bos-
ton and Albany outright. The Central people,
therefore, had to consider the contingency, not
only that the Boston connection might be
bought up by the New Haven, but that it might
come completely within the power, if not the
possession, Of the Pennsylvania itself.