The sun. [volume] (New York [N.Y.]) 1833-1916, 1913-01-17
THIRD AVENUE BUYS
59TH STREET LINE
Central Trust Company Syndi-
cate Revealed as the Law
ypr's BackerS.
OFFERED TO y. Y. CENTRAL
President Whitridoe Says He
Found Owners Of Road Had
Plenty Of Money.

A syndicate closely associated with
the Central Trust Company yesterday
sold to the Third Avenue Railway Com
pany the Fftv-ninth street crosstown
line and its river front connections.
Frederick W. whitridge, president of
the Third Avenue, said last night that
the price was somewhat in EXCESS of
g. 100 900" Edward Cornell. lawyer
for the syndicate. and the man who
bought the road and carried on nego-
tiations for dts sale. remarked that
somewhat is an elastic word, but that
he was not at liberty to give the precise
figures.
Mr.. Cornell carried on his ncgotia-
tons with the greatest secrecy. He
has not told who the men We're who
furnished the money. and several Of the
Third Avenue directors said they did
not know who the real owners of the
line had been. But II was said in Wall
street on the best authority that 1t was
IA Central Trust syndicate.
II found on, that the owners OF the
road had plenty Of money remarked
MIR. Whitridre. otherwise would
have been inclined 10 let them keep
their road"
The vote on the purchase OF the line
was taken at 4 meeting of the Third
Avenue directors. For two or three
days II had been riImored that the
Third Avenue was probable pur-
chaser Of the line. Mr. Cornell IA id
he had been in active negotiations with
the company for only ten days.
MIR Cornell bought the Fifty-nin
street line on November IA last. The
road was up at auction on foreclosure
/ in accordance with an order Of the
United States Circuit Court The New
York Railways Company, which held Il
first mortgage on the property amount
ing TO 1900 900. was looked upon as the
! only purchaser Theodore +. Shonts
president Of the New York Railways
Company. appeared as bidder. bu,
Mr. Cornell went higher than MIR
Shonts was willing tu go. The road
was knocked down Ia him at $l6,3.000
Mr.. Cornell kept the names of his
| associates secret. II was supposed
| that the stockholders committee of tn.
| road had furnished the money for hi,
purchase or that the Third Avenue was
| behind Mr.. Cornell. But Mr.. Cornell de
Clared he was his own man. and Fred
| erick w WhitrldGe. president OF ths
| Third Avenue, said he had no interest
present or prospective In the road
| MIR Cornell after the auction took tn.
| line to the New York Railways Com
pany. but he was told the company do
not want to buy II. Mr. Shonts wa
sa tisted, II was explained, because tn.
company stood to get the full value OF
| the mortgage, plus accrued interest
| amounting TO about 1898 ,0Uu.
II was then suggested to the New
York Central that the Central Park
North and East River Railroad. the
company owning the Fifty ninth street
| line and its rivFfrort connections
! would be a profitable investment. The
suggestion was not agreeable to the New
York Central and Mr.. Cornell had 20 lool
elsewhere for purchaser. Various
schemes were proposed and turned down
The stockholders committee of the old
company vas approached, hut no plan
was forthcoming whereby the old stock
holders could obtain an interest in the
new organization without supplying
more money than ihey wrrc ready Ia
furnish,
Mr.. Cornell incorporated tho road on
December - under the name OF the Bel,
Line Railway Corporation. None of his
hackers appeared on the directorate
The incorporators and the directors were
mostly young lawyers in Mr.. Cornclrs
NV Office and he stcadfastly refused to
reveal tho names OF tn. men who had
gone into the speculation behind him.
The Central Trust Company, with
which MIR. Cornelrs syndicate was
! closely connected. Is the trapsfcr agent
| for the Third Avenue Railway Com
pany. James y. Wallace, president Of
the Central Trust, is director OF tho
| Third Avenue and was chairman oi
the committee representing the cousoii-
dated hondholdcrs prior to tho rcorganl-
| zation Of the Third Avenuc RaiiwR,
Company in 1911. An assossmcn; OF
4j per cent. on the old stock was under
written ny the Central Trust Compan,
under the plan of reorganization
| Several trustees Of tho Central Trus
Company were members Of Mr.. Corncll's
| syndicate.
Mr.. Cornell was obligated under the
terms Of his purchase to pay S436. .;
Of taxes which had grown up against