New-York tribune., 1905-11-30
ERIE GIVES UP c., H. & D
SOLD BACK TO MORGAN.
Trunk Line Officials Not Satisfied
nth Recent Purchase.

The Cincinnati, Hamilton and Dayton Rail-
~ Company, recently sold by ]. p Morgan &
- "a the Erie was sold back to the banking
a., ~ the Erie yesterday. Investigation by the
[--is officials and Mr.. Morgan disclosed, it was
so,5 in explanation. that the actual condition
:, tbe road had been misunderstood when Mr..
Morgan first purchased It
rrnder the conditions discovered to exist the
,-onerty would have been a heavy drain on
che Erie. and Mr.. Morgan himself yesterday
osore5 10 take it of that roads hands. What
hs viii co with the road is a cause of specula-
+,on among railroad men. No statement could
be obtained relative to the Cincinnati. Hamilton
and Daytonts future
The following statement was issued from the
oe7ce OF President Underwood OF the Erie after
meeting Of the board OF directors:
7, having. appeared TO the board or directors of
me Erie Railroad Company that under existing
Conditions the PGTGnaSe q me e0LGh n & soSS o, o.
Many might involve obligations on the part OF the
Ere company, interfering with the future develop
,nent Of It's cwn TallFoad Inc boaIu o. uilsctoLs
+odsv voted unanimously to accept the orrer OF
T P Morgan himself 10 assume and complete that
purchase on his own account thus LtleNlLs me tI!e
f.e Railroad from an costs, charges ana contracts
"a - I viii fhe sale Of its $1,000 900 convertible
yn6s as heretofore authorized. the proceeds 10 be
gs = the Improvement Of and extensions 10 It's road
~ course all stockholders VINO nave subscribed Tor
aT ne ,s2.t5T sock being pieiged Hereunder will be
released from the subscriptions if they so desire.
N the latter part Of September it was an
nounced that ]. p. Morgan & Co. had bought
from the H. B. Hollins Syndicate the subserip-
non rights TO $4,000 Of the $4,000 shares OF
cincinnati Hamilton and Dayton, held in a
yotjng trust. at l60. A few days later came
,ho announcement that the Erie had decided
,o nurcfase this stock from the Morgan firm.
a1life
si,ion 10 the taking over of the Cincinnati
t5ar,iitan and Dayton by the Erie, and Wall
S+raa+ heard that President Underwood him
sef did not believe entirely in the properties.
Money actually was paid over by the Erie how
ever and all arrangements were made to finance
,bts 7urefase by the sale of $120O0.eo0 of the
Der cent bonds Of 1903
4 trip Of inspection was made by President
r,ndervsood Of the Erie and several of the vice
presidents. accompanied by Russell Harding, Of
the Cincinnati, Hamilton and Dayton. AT that
time il was learned yesterday, the Erie mems
9s,snicinus were reused that some of the COM
panies controlled by the Cincinnati Hamilton
and DAYTON would not especially benefit the
Erie. Mr. Morgan also looked into the proper
Ties after the sale.
Tbe rasryts of these Investigations. it was
aid convinced Mr.. Morgan and the Erie off,
risls that the carrying out of the bargain
would do great harm to the Erie. Contracts
we're discovered, it was said. conveying rights
"a outside companies which the Cincinnati,
Hamilton and Dayton was supposed to enjoy.
The acquisition of the Chicago, Cincinnati and
Louisville Railroad by the Cincinnati, Hamilton
and Dayton and that roads guarantee OF
the dividends on the Pere Marquette stock were
viewed with much uisfaXor. Inc, Inc iISllIo T5;,to
rangement made by the Cincinnati HainlIIoti
and DAYTON with the Detroit Toledo ana iFoh-
ion. also came in for criticism -
Altogether Erie men decided that the goodS
delivered were NOT llp 10 sample Mr. Morgan
decided the same thing, and attended the month
~ meeting of. the Erie board 10 tel! the dlrec-
tors so, and TO make an offer TO take back the
shares OF Cincinnati Hamilton and Dayton
stock thus releasing the Erie from lis part or
the bargain. 1t was expected thar an othcial
statement would be made by his nrls2 as 10 tne
outcome Of this new deal but none was MADE
George ". PerkinR who, with Mr.. Steele was
active in the original transaction. SAID;
Z know nothing about any statement 10 be
issued II there Is one nothing has been said
70 ne about il. You win have 10 see some
ether member of the firm about that
Harry Hollins Of H. B. Holiins & Co. tactty
admitted the resale Of the Cincinnati, Hamilton
and. Dayton stock to the Morgan firm, but would
make no comments on II.
Were out Of it; we've got nothing to do with
Il any more - said he.
About q month ago a meeting of the Cineir-
nat, Hamilton and DAYTON was held, at when
an Erie board was elected. including Charles
Steele, Samuel Spencer, George T, Baker and
F. D. Underwood. president OF the Erie. who
was made president of the Cincinnati, Hamilton
and Dayton. Russell Harding, the first vice
president, was retained. Mr.. Harding was also
made vice-president Of the Erie, making him
The vice-president Of the entire system, including
the Erie, Cincinnati, Hamilton and Dayton and
The Pers Marquette
g On November 16 Mr.. Harding resigned from
the Erie. accompanying his resignation were
stories that there was internal trouble because
Of the dissstis action OF Erie officials over the
discoveries OF various phases OF CINCINNATI
Hamilton and Dayton management, for which
Mr.. Harding. they considered, had been re-
sponsihIe. These stories at the time were de-
MED.
Russell Harding former .yice-president of TIE
Cincinnati, Hamilton and Dayton roao, When
seen at the Hotel Lorraine last night, denied
that there was any trouble over the transfer
Of the road or that as far as he knew the
road had proved not up to expectations.
This is all news to me- he said - In fact'
don't know the details Of to-days sale we
sold the road TO Mr.. Morgan, and at the same
tine the Fere Marquette. an auXlllaTy road.
You should see Eir. Morgan about this Maybe
ne can explain it z
NJ. Harding would neither affirm nor deny
that Mr Morgan was made TO believe that the
alleged concessions which the road was sup
posed 10 nave had prior 10 sale were intact When
/ was transferred to him. ## s.
RECEIVER FOR CHINESE COMPANY,
An Involuntary petition in bankruptcy was fled