New-York tribune., 1911-03-01
MORGAN GETS RAILROAD
Taxes pere Marquette from G.,
H.&D.-B. & 0, to Control.
WILLARD SUCCEEDS coTTER
Substantial improvements for
Road Will Be Begun at Once
New Note Issue.

.,,,.snent was made yesterday that
-, cincinnati. Hamilton & Dayton Rail-
=, Company which is controlled oy the
-,.,-,ors & Ohio Railroad Company. had
=, $4,000 shares OF the common stock OF
=. psre MarQuctte Railroad Company 10
p Morgan Is Co.. who viii probably IN
.,,-, ,he block over 20 the Baltimore &
o.,o william Cotter. who has been presl-
-. At both the Cincinnati, Hamilton
.,, ara the Pere Marquette. has re-
--nad the presidency Of the former. ana
,,s.,s, willard. president OF the Baltimore
on,o has been elected in his place.
-. 2 Randolph. first vice-president OF
baltimore a. Ohio, has been elected
| Ue .ra.,dent Of the Cincinnati, Hamilton
ravtor In charge OF traffic. II was un-
s,-stood that no other changes In the stan
- .g+her the Dayton road or the Pere MAT
.,s,te would be made
r.. transaction by which the Morgan
80, took over the stock included arrange
r.s for financing substantial improve
- % the Pere Marquette Railroad
-, viu be begun at once. In connec-
80, with these arrangements the FeFe
s,-..tfa has Issued 5000 900 hve-year
= sent notes under a collateral indenturo'
:, ,bIch the Guaranty Trust Company Is
.~,s,se the notes being secured by the &C.
-, ri SlSmoon0 fifty-year per cent
s,ds issued under an improvement ana
-.s,,rsinr general mortgage TO the Bank
=, trust Company, trustee. The total
common stock Of the Pere Marquette Is
q. 9s lao. and II has also N0slI,S0 flrst
.rsfsrred and sa07,oSo second preferred
stock ...-
common stock now transferred by the
rsrc,nnati. Hamilton q Dayton were ac-
o,,,red nv IL IN 1894 and 1900 as part Of the
o7,bt,ous scheme for the establishment OF
,,s so.called Great Central Route which,
80, the two roads named and the CHI
80 cincinnati & Louisville Railway as
a. ,ucleus. Was ultimately to comprehend
s,,s,sro extending from Lake Superior 70
,ne culf and from st. Louis to the Atlantic
,sahoars. The three roads were operated
~. toint officers for time. the Pere Mar
ons,ts having bought the capital stock Of
,,o chicago. Cincinnati & Louisville and
leased that road 10 the Cincinnati. Ham
ufon & Dayton. In December, 1902 the
pere Marquette directors refused TO raufy
the ru~chase Of the Chicago, Cincinnati az
louisville. as illegal, and subsequently
1,dson Harmon. then receiver OF the Gin
einnsti. Hamilton & Dayton, disavowcd tho
transaction for that company. The control
~ tbe Chicago Cincinnati & Louisville was
later surrendered 70 It's original owners,
and A year or so ago the road became
rsrt Of the Chesapeake & Ohio system.
The ATTEMPT 90 create the Great Central
Route gave rise 20 long and complicated
litigation in which the operations Of sew
eral syndicates figured
IN September. 1906. J. P. Morgan & Co.
bought from the 4. b. Hollins & Co. syndi-
cate a majority OF the stock OF the Gin
cnnad. Hamilton & Dayton. which car
ried virtual control Of the Pere Marquette
also. and In the same month sold the
stock 10 the Erie Railroad Company. Two
months later the Erie resold it to J. p.
Morgan Co. Il having been found that
the relations OF the road with certain other
roads. nor fully known by either the Nor
gsn house or the Erie AZ tho time of the
transaction. we're such that the ownership
OF the property by the Erie would involve
100 heavy drain upon the latter.
The finances Of the Cincinnati. Hamilton
Dayton. which road had teen placed in a
receiverSiD IN December. 1906. were read
5usted without foreclosure. and IN August,
I9oa, the receiver was discharged and the
baltimore * Ohio Railroad Company took
over the management, under an agreement
by which 70 should acquire the ownership
Of the controlling stock interest. then held
by J. P. Morgan & Co, 81 seven years
from July !, 1909
" was commonly understood that the
Psre Marquette. now no longer controlled
ay the Cincinnati Hamilton & Dayton. Will
pass under the control OF the Baltimore q
Ohio. As FAR back as March :, 1909. several
months before the turning over OF the
Cincinnati. Hamilton & Dayton control by
the Morgan house 90 the Baltimore &
Ohio, a dispatch from Detroit quoted q
Pere Marquette officer as saying:
1T IS proposed that the Baltimore &
Ohio shall guarantee the principal and IN
tersst on the rcr cent notes OF the Gin
cnnati. Hamilton & Dayton, which mature
in 1913. In return the Cincinnati Hamil-
ion DAYTON Is 70 relinquish sl.0o000o Of
common stock cf the Pere Marquette
The Baltimore & Ohio. under the agree
ment made I'm August, 1903. guarantees the
slL570o) 4 per cent purchase money notes
~ "a Il no