Daily new dominion. [volume] (Morgantown, W. Va.) 1897-1906, 1900-01-12
GIGANTIC COMBINATION.
All of the Railroads East of the
Mississippi Combine.
Vanderbilt and Cassett Buy Four
Roads -B. and D. Under Control Of
The Pennsylvania Far Reaching
Move on the Part OF Money Kings
The Most Gigantic Deal of The age.

tut uOst Uisduttt Deat OF Inc age.
The following has been sent out by
William Il. Curtis who is one Of the
best known newspaper men in Wash
ington and whose word is good for
face value every time.
1.-THE mo st important railroad deal
of this generation was closed the 9th.
er day in New York without notorie-
ty,' said a prominent railroad mana
ger at the Arlington. | am surprised
that the newspapers did not recognize
its significance, for it gives the New
York Central and Pennsylvania com
panies control Of traffic between Chi
cago, st. Louis, Cincinnati, Pittsburg
and all the principal points in the
Mississippi Valley and the seaboard.
William X. Vanderbilt and Alexander
j. Cassett are masters Of the transpor-
tation problem this side OF the Miss
/ issippi river.
"When Cornelius Vanderbilt died
and his brother William X. took
charge Of the New York Central sys-
TEN, he found that the earnings of
the various corporations comprising
the Vanderbilt system were much re-
duced by unnecessary and unreason-
able competition and that their rivals
were suffering In an equal manner and
even to larger extent, owing TO the
! decision OF the supreme court forbid
ding pools. For example, one little
cut in the freight schedule made by
the receivers of the Baltimore & Ohio
railroad cost the corporation 5,o00.-
900 and cost the Pennsylvania COM
panies at least $13, 600, 900 the public
never knowing the difference No
body was benefited but the stock
holders OF both roads suffered Sc
perely.
1.-The first thing Mr.. Wander bllt
did towards carrying out his plan for
combination TO prevent such mis-
takes was to invite William Rockefeller
into the directory of the New York
Central railroad, although the latter
did not own single share of stock in
the corporation. He felt the need Of
a wise, clear headed adviser, who had
never been identified with the family
property or the New York Central
system and therefore was able to con-
slider their interests from disinter-
ested point of view. Mr.. Rockefeller
approved OF his scheme, and entered
into it heartily.
s'Mr. Vanderbilt arranged an inter
view with Mr. Cassett who had lust
succeeded to the presidency OF the
Pennsylvania system. Frank Thorn
son understood the Situation, hut he
was not man OF courage or indie
pendent spirit. He did not like to
take risks, and preferred to follow
rather than lead his board Of direc
tors. Mr.. Thomson was sensitive
| to criticism, both from his friends
| and his opponents. Mr.. Cassett is
entirely different. He is big Drained,
| broad minded and self-confident, will
ing to take the risk of any scheme his
judgment approves and he does not
| fear criticism IL he fails.
OVER IN Is MINUTES.
''In tlfteen minutes after those
three men came together the arrange
ment was as good as made. Pools
had beed pronounced Illegal. There
was nc possible way under which the
great trunk lines with their feeders
could be brought into an arrange
ment to restore and maintain rates
except by purchase, and MI. Wander
bilt said to Mr.. Cassett:
'sYou buy the Baltimore & Ohio
and the Chesapeake & Ohio and we
will buy the Big -Four and the Lake
Erie & Western. Then we, together,
will control the traffic between the
Mississippi river and the Atlantic
ocean.
"All right, said Mr. Cassett, / am
with you, and without another agree
ment or further consultation the two
men sent for their brokers and began
quietly to pick up the stock Of the
railroads referred to. Whenever
share was offered on the market they
purchased it, and it was done SO skill
fully that the price was not disturbed
in the slightest degree. There have
been no more than the usual varia-
| tions in the quotations OF the stock
of any Of the properties. Mr.. Cassett
bought one block Of 100, 900 shares of
the Baltimore & Ohio stock, however
/ through Jacob Schiff, of the firm OF
Kuhne, Loeb & Company and James
j. Hill, president of the Great North
ern. 1t was all done with borrowed
money with the faith that the direc-
tory of the Pennsylvania would ap-
prove the action of its president and
provide the funds to pay for the stock
he had bought.
FEW LET INTO THE SECRET.
i am sure that 40 great financial
transaction was ever carried through
by SO few men or with such secrecy.
There were not half a dozen persons
all told in the secret, and even the
managers OF the railways mostly i'm
teressed did not have the slightest
suspicion OF what was going On.
| Continued on Second Page.