Evening star., 1899-12-01
THE RAILROAD DEAL
Conflicting Views as to Real Facts in
the Case.
QUESTION OF PURCHASE OR POOL
New Rumor Causes the Revival of
Many Old Ones.


Special Cores pOndence of The Evening Star
NEW YORK November 80, 1899
For some time past a rumor has been
floating through financial sections in effect
that the Pennsylvania railroad had ac-
quired control of the Baltimore and Ohio
railroad, and that W. X. Vanderbilt, in the
interest of the New York Central, had
taken over controiiing holdings of J. Pier
pont Morgan in the Cleveland, Cincinnati,
Chicago and ST. Louis and the Chesapeake
and Ohio railroads The rumOr has been
discounted repeatedly, and the information
volunteered that the report probably had
its origin in the fact that there was a
movement on foot looking to the extension
and concentration of terminals in Chicago.
Yesterday, however, came positive state
ment that the much-reported deal had been
consummated. Railroad headquarters in
this city were Immediately beseged by
newspaper and financial men seeking infor-
nation. The result today. far as infor-
nation is concerned, as in the past, was
negative. Baltimore and Ohio representa-
tives In this city declared that they knew
nothing about any change in the control.
At the Grand Central station no state
ments, either affirmative or negative. were
made. w. K. Vanderbilt has his desk in
the treasurer's department. He was not
accessible, and E V. w. Rossiter, the
treasurer of the New York Central. referred
all seekers after information to President
Galloway. Mr.. Galloway simply remarked:
Il have nothing to say | wonder where
There is nothing that l can say about
them"
Senator Chauncey NJ Depew, chairman
of the Vanderbilt boards of directors. de-
clared that he knew nothing whatever
about the alleged deals. Asked if there
was any likelihood of any official statement
being made with regard to the matter to-
hD iD1 hi tod NOR
the next day, so far as | know.
Would Not Deny the Rumors.
Both Mr.. Galloway and Senator Depew
We're asked if they would deny the pub
lished statements so far as the New York
Central was concerned, and they replied
that they would say nothing about the mat
ter one way the other.
At the Office of j. p. Morgan & Co. the
same non-cOmmttal reticence prevailed
Questions relating to the alleged changes
in the control of Big Four and Chesapeake
and Ohio We're answered by the Stereotyped
There is nothing to be said "
In view of the absence of denials of
the positive statements made. and in view
of recent significant movements in the
stocks of the railroad properties concerned
the published story is regarded as not with
out foundation. Many persons in Wall
street and elsewhere who have excellent
sources of Information believe that some
such changes as are reported are under
way, even if they have not been completed.
There are intimatiOns from good sources
that the announcements already made are
simply premature. Some important details,
1t is said yet remain to be settled. 1t IS no
secret that under President Cassatt's man.
agement the Pennsylvania railroad has be-
come closer in its friendship toward the
Vanderbilt interests than ever before. There
Is a very strong personal friendship exist
ing between Mr. Cassatt and President Cal
laway Of the New York Central. Well
posted railroad men recognize the fact that
any movement designed to strengthen the
eastern :runk line situation would find the
New York Central and Pennsylvania work.
ing together In perfect harmony.
Relief That b. and o. Has Been Sold.
Belief in the report that the Baltimore
and Ohio railroad had changed hands was
strengthened in Wall street late yester-
day afternoon, when one Of the most active
of the stock exchange traders declared that
he knew of the transfer of 10000 shares of
Baltimore and Ohio stock outright to cap
italists other than J. p. Morgan & Co.
Nj. Morgan. who was an influential factor
in the reorganization of the Baltimore and
Ohio. has declined to say anything about
that property since the rumOrS concerning
il have become prevalent. The outstanding
capital stock OF the Baltimore and Ohio
embraces $50, 100000 of preferred stock and
about $45@b6,S9 Of common stock. Recent
heavy purchases of both classes of stock
New York.
The Baltimore and Ohio railroad COM
prises 1850 miles, with branches and leased
lines. Its charter is one of the oldest rail-
road charters in this country, having been
granted ny the state of Maryland February
Is, 1927. A portion of the road has been
in operation nearly seventy years. The
company defautted In the interest on its
bonds in the spring of 1896, and during the
past three years the property underwent
various processes of reorganization. The
plan now in operation was completed about
n year ago, and large sums of money have
been expended in putting the road and its
equipment in good condition. Its net earn
irgs in 1893 were 81. 446696, and it's officers
believe that the net earnings for the cur
rent year will exceed that figure by three
or four millions Of dollars.
The Cleveland, Cincinnati, Chicago and
St. Louis railroad. otherwise known as the
big Four system has an aggregate mile
age of . 235 miles. Its capital stock Is Sto,-
900 900 of which S25.00o,600 is common and
S1O.O0O,OOO preferred. This system was
made up about ten years ago by the con-
solidation of the old Three Cs and T.
{the Cleveland, Columbus, Cincinnati and
Indianapolis with the Cincinnati, Indian
apolis. St Louis and Chicago and the In
dianapolis and ST Louis railway Other
lines were subsequently merged by pur-
chase and by lease The Cincinnati, Wa
bash and Michigan railway was one of
these.
Dominated by Vanderbilt Interests.
Since ii became the Big fOur tnlS prop
erty has been dominated by the Vanderbilt
interests and has been classed as a part
of the Vanderbilt system. President In
gals has usually attended the meetings and
conferences of the Vanderbilt presidents,
and Vice President J. D. Laying and Treas
urer Cox are both Vanderbilt men.
Although NJ. f. ingalls, is also president
of the Chesapeake and Ohio railroad that
system has not been so closely identified
with the Vanderbilt interests, although
friendly relations have been preserved.
Colts P Huntington sold the controlling
interest a few years ago to capitalists rep
resented by ]. +. Morgan. The Cheapeake
and Ohio has total mileage of 1850 miles,
and the main line runs from Fort Monroe
TO Cincinnati. This company is joint owner
with the Big Four of the Louisville and
Jeffersonville bridge, and it has trackage
rights over the Louisville and Nashville
from Lexington to Louisville, KY, dis
tance of eighty-fOur miles. The corpora
ton is capitalized at O,5O0OOO.
A GIGANTIC TRAFFIC DEAL.
New York Herald's views on the Rail-
road RunOr.
The New York Herald gives the following