The Washington herald., 1909-02-01
WILL IMPROVE Gao.
Controlling Interest in Road
Has Been Sold.
PURCHASED BY A SYNDICATE
Nine Capitalists Identified with Rail-
road Interests of the Country, Rep
resenting sI5O,OOO,OO0, Purpose to
Pat the Line on It's Feet and Make
It One of the Best of the Country

SPECIAL to The Washington Herald.
Louisville. Jan SL-In a dispatch to the
Courier-JOurnal under q Washington date.
Col. o. o. stealey mas the following TO
say concerning the recent sale Of the
Chesapeake and Ohio Railroad:
For years the Chesapeake and Ohio
Railroad has been drifting and struggling
along, its stockholders realizing little. If
any, returns for the investment It cost
the late Coils P Huntington millions
upon millions to build It. and since then
millions have been expended IN improve
ments. For the last thirty years the
road has been seriously handicapped by
lack Of money for its development
Fortunately for the South and the
stockholders Of the road. this handicap
has been taken of. and in a few weeks
the road VIII stand upon its own feet and
become one Of the great trunk lines OF the
country, with connections from the At
lantic TO the Pacific.
The controlling interest in the stock OF
the Chesapeake and Ohio has been pur-
chased by a syndicate Of nine wealthy
men prominently identified with the rail-
road interests Of the country. This syndi-
cate represents a capital OF not less than
S15o, 000.0Oo
Some of the Capitalists.
It is headed by such weII-known capl-
taliSts as Edwin Hawley. Henry Walters,
or Baltimore and New York, the owner
Of the Atlantic Coast Line. which has the
largest ownership in the Louisville and
Nashville; E. H Huntington. OF the Pa
clhc Coast. nephew of the late c. P
Huntington, a man OF great wealth.
In addition 10 these. there are three
large bonding houses in Baltimore and
New York included IN the syndicate II
Is believed that E n. Hartman. the
railroad wizard. could not break through
the lines OF this strong combination.
With all Of the money necessary. II IS
now the object 0f the new owners 10
develop the property, and 10 make the
road one OF the best IN the country, and
this viii be done.
Your correspondent can state upon the
highest authority that no important
changes viii be made under The new
management. Hawley and Huntington
are warm friends OF George W Stevens.
and recognize IN him a most capable
railroad man. lie VIII be retained as
president.
Associated with Mr. Hawley in the
purchase Of the Chesapeake and Ohio are
Frank Trumbull who is soon 10 retire
from the presidency Of the Colorado and
Southern Railroad. recently sold By Mr..
Hawley 10 the Chicago. Burlington and
Quincy. and F. W Scott Of the banking
firm OF Richmond. -
The sO-caued TfaWley roads are the
Toledo. St Lous and Western. the Chi
cago and Alton. the Iowa Central. and
the Minneapolis and st. Louis. The Ches-
apeake and Ohio connects with none Of
them. and the transaction has aroused
speculation as 20 whether It was proposed
TO connect the lire with either the Clover
Leaf or Alton. Two roads now in the
hands OF receivers might serve this pur-
pose after a fashion. the Cincinnati, Ham
iitOn and Dayton. providing a line be
tween the Chesapeake and Ohio at Gin
cinnati and the Clover Leaf. and the
Chicago, Cincinnati and Louisville, line
between Cincinnati and the Alton and
Chicago.
A meeting Of the stockholders OF the
road viii be held February .. When the
stock viii be transferred 10 the new
owners. The general Offices OF the CON-
pany viii remain in Richmond, as Mr..
Fred u. Scott. OF that city, is a member
OF the new syndicate.
Another Purchase Probable.
There is a story that the Hawley syn
dicate may also purchase the Cincinnati.
Hamilton and Dayton The total amount
OF Chesapeake and Ohio common stock is
62S. 900 shares. and # is believed that
the syndicate has control OF nearly 100. .0o9
OF this Edwin Hawley. who heads the
syndicate. IS president Of the AIinneap-
oils and St Louis Railroad and Of the
Iowa Central. He is from New York
About 50.e09 shares Of the Chesapeake
and Ohio stock are held in Louisville and
throughout Kentucky The stock IS nov
selling at SsLl4 a share. but il is the
belief among railroad men that It viii
go 10 So within the next year, provided
business keeps up.