The Birmingham age-herald., 1917-12-27
HOW VANDERBILT
 SOLD HIS STOCK
By HOLLAND

which is now held abroad there is a most significant incident in the ca reer of the late William H. Wander bilt which this statistical report brought to the minds of the few now remaining who had knowledge of the incident, especially former United States Senator Chauncey M. Depew. At the beginning of the European war there were held abroad $25,000,000 ap- proximately of New York Central stock. Upon November i this had been decreased to about $5.000, 900, showing that in the three years and a third of the war the United States has ab- sorbed some s2O,000,00o of the New York Central stock, presumably that which was sold by MT. Vanderbilt, with the aid of J. M Morgan.
 The stocks of two of the other trunk lines. the Pennsylvania and the Baltl- more and Ohio, were decreased since June, 1914. by amounts comparable with the decrease in the foreign hold ings of New York Central stock.
 These statistics suggest that Eng fish investors had not appreciably re- duced their holdings of the great block of stock which the late J. P. Morgan sold in London shortly after William H. Vanderbilt succeeded his father, the commodore, as the absolute own CT of the New York Central corpora tion. Incidentally 1t may be reported that sometimes when men of fnance speak of the unparalleled deprecia- ton in the market value of railway securities and especially of such prime securities as represent the obligations of the New York Central, the Penn sylvania and the Baltimore and Ohio railway companies, they refer this ooWnward movement in part to the sale in this country of great blocks of railroad securities which at tbe time the war began were held by Eng fish and other investors across the sea.
 The incident which the substantially complete absorption by the United States of New York Central railways stock since 1914 suggests is one which IS associated with the first spectacular triumph of the late J. P Morgan. MT. Vanderbilt came, when he succeeded his father, into possession of much the greater part of the stock of the New York Central Railway company. There was widespread comment, sometimes severely critical, based upon the fact that MT. Vanderbilt owned almost all or the New York Central stock and that he therefore represented the dan ger which many believed to exist if tnere were one-man control of a great railway system.
 DEPEW'S RECOLLECTIONS
 Shortly after MT. Depew retired from service as United States senator he spoke in some detail of the transac- .ion m Whlch MT. Morgan and MT Van uerpilt were, upon this side of the At- lantic, exclusively associated witb bankers in London. Mr. Vanderbilt. ac- cordlng to Senator Depew, was greatly ulstressed by the increasing criticism, Whlch referred to his one-man nower over one of the greatest of American rallway systems. Furthermore. he was alarmed lest the legislature at AL pany' Tn view of his almost exclusive noioing or New York Central stock. would impose not only immediateIv heavy taxation but constantly increas. ing taxation. He was informed that ehls disposition was not merely poIit icai put did reflect a strong feeling ehat prevailed throughout the state.
 WHY HE SOLD THE STOCK
 For that reason MT. Vanderbilt de- termlned to sell a large block of New ork central stock, provided that could pe oone dlscreetly and without depreciat ing the market value of the stock.
 while still much perplexed, for he was unapie 10 think Of any plan by means ol Whlch the disposal of the stock col,Id De made without causing depreciation in market price, MT. Depew suggested that NIT: vanderbilt have conference with J. F. Morgan. This MT Vanderbilt was all the more ready to do because he had been informed while in England of the success Of MT. Morgan in negotiating III London some two hundred millions or united States bonds. That was a negotiation which first brought Mr Mor- gan 10 the attention of men of finance who were then of great experience and capacity. A conference with MT. Nor gan was held. MT. Morgan did not know when he was summoned to meet MT vanderbilt what lay behind the invitation to call at the New York Central office
 WHAT MIR. MORGAN DID
 MT. Morgan was not long in finding out the purpose Which lay behind Mr. Van oerpilI invitation. For MT. Vanderbilt sala to nm that there was great danger tnat the legislature and also the cit ' or New York would lay excessive taxes upon the New York Central property These taxes might be so heavy that the road would be compelled to seek fhs protection of the courts. This disnosi- ton was due. MT. Vanderbilt said r. the fact that he was regarded as the owner of almost all of the stock of tho Ney York Central. Therefore. he ha,l determined to part with a large block or stock and sought MT. Morgan's a.d Tn dolng this privately. Mr Morgan With his customary inruitive Judgment, said that he could sell privately in Lon don. by practically -the-counter methods, all the stock MT Vanderbilt was Wiling to dispose of, and that he could do this at what was then the. market price for the stock. $l30 peS>sls1l a short time MT VaaG1
 largeS
 eomJ
 was
 bilt
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