New-York tribune., 1901-01-09
IN CONTROL OF D. AND Fl.
SECURED BY PURCHASE OF STOCK FOR
VANDERBILT INTERESTS.
CENTRAL UNDER LEASE-A FACTOR IN
THE COAL CARRYING SITUATION.

Control of the Delaware and Hudson Railroad
has been acquired by Vanderbilt interests. J.
Pierpont Morgan as in the case of the acquisi-
tion of the Jersey Central, acting for small
group of capitalists interested in clarifying the
coal situation in the East, by private sale and
in the public market. acquired enough OF the
stock Of the company to make control OF the
property a certainty. 1t learned from an
authoritative source yesterday that the Della
ware and Hudson would be turned over to the
New-York Central under lease 1t is said that
the lease will take the form of guarantee
upon the stock. possibly about 6 per cent, and
that bonds will be issued. as was the case in the
Lake Shore DEAL to provide for taking over the
stock.
The Delaware and Hudson is heavy coal
carrying road and a great factor in the coal
situation. Some years ago plan on foot
for the New-York Central to acquire it, At that
time the New-York Central did not figure as
coal carrying road, and Cornelius Vanderbilt did
not desire TO place II in position TO become en-
tangled with coal traffic. rates for which were
VIGOROUSLY demoraIzed. and the plan was
dropped Recently the New-York Central by
the operation OF its Beech Greek division and
building extensions in the Pennsylvania division
has become a coal carrying road OF Importance.
The Delaware and Hudson is naturally in
good position for absorption by the New-Hork
Central. When ]. Pierpont Morgan, William
Rockefeller and those allied with them under
took to place all the coal roads OF the East
under so called community control" the Della
ware and Hudson was considered In connection
with the consolidation and mergers proposed.
The acquisition OF the New-Jersey Central I'D
its consolidation with the Reading and the con-
troll by the Erie Of the Pennsylvania Coal Com
pany were simply steps to bring these proper
ties under the control OF the coterie Of capital
situation in the East. The maintenance Of rates,
economical operation and elimination Of ruinous
competition were the results aimed at
The Delaware and Hudson has always been
regarded as nomnally a Vanderbilt property.
although the ownership OF the road not
vested in the Vanderbilts. The road has
enormous coal tonnage, and under independent
operation could make great deal OF trouble.
1t has always been operated nominally in
friendly relations with the New York Central.
but a closer afIiliation deemed advisable.
There was some talk yesterday that the road
would be turned over TO the Delaware Lack
awanna and Western This is not considered
probable and while the plan Of consolidation
with the New-York Central is yet in a purely
tentative FORM 1t is believed that this will be the
result. The interests allied with Mr.. Morgan
secured control of the Delaware and Hudson
simply TO insure harmonious operation, and ii
will be disposed of seems best. The plan for
leasing TO the New York Central has been talked
over between representatives Of the Vanderbilts
and the largest stockholders Of the Delaware
and Hudson.
Two things are expected to be gained by the
acquisition OF the Delaware and Hudson. In
the first place. the New-York Central and the
Delaware and Hudson closely affiliated in
the matter of freight and passenger traffic to
Saratoga, Lake Champlain Lake George and
points in Northern New-York, and the ac-
quisition Of the Boston and Albany by the
NeW-York Central will give the Central an out
let to the East for Delaware and Hudson traffic.
In the second place the Delaware and Hudson
was found to be an important integral part or
the coal combination forming
The acquisition Of a control of the property
has been effected quietly. but the result has
last few days by the extraordinary activity In
the stock and the rise in price. On Januray z
the first business day of this year. Delaware
and Hudson closed at 1892. Yesterday 1t closed
Years. The lowest price touched by the stock
in 1900 was 1862 September 20. On De-
cember ; it closed at 11512 The company has
$34, 900 stock which the dividend rate
of road operated is 6S5 miles, the companys
lines extending from Albany northward to
Rouses Point, the Canadian border and
southwestWard to Binghamton, N. Y, and to
| Scranton, Wilkesbarre and Honesdale in the
anthracite coal region of Pennsylvania, with
various branches
The Board of Directors of the Delaware and
Hudson Company are r. M Olyphant, w. H.
Tinghast Alfred Van Santvoord A. F. Orr.
Chauncey NJ. Depew, James w. Alexander.
John Jacob Astor. r. Somers Hayes, Frederic
Cromwell James r. Taylor, Horace G. Young
and David Wilcox. Mr.. Olyphant is president
of the company, and Mr.. Wilcox fort
night ago elected vice-president to fill the
cancy caused by the death OF James Roosevelt.
ANN OK ON DJ N11Td ET1DED