The Washington herald., 1917-12-27
DRY STATISTICS.
SHOW ROMANCE
New York Central Railway
Stocks S Transfer Back to
America Involved.

NllC SeoSAENAGdA
just made public which tells OF the
amount OF New York CentraI eilway
stock which f. now held abroad there
Is most significant incindent In the
career OF the late william II. VAN
derbilt which this statistical report
brought to the minds OF the few now
Remaining who had knowledge Of the
| incident. especially former United
States senator Chauneey NJ. Depew.
| At the beginning Of the European
Nwar there were held abroad twenty
five millions approximately Of New
York Central stock. Upon November
this had been decreased to about
fve millions, showing that in the three
years and a third of the war the Uni
ted States has absorbed some twenty
millions Of the New York Central
stock, presumably that which was sold
by Mr.. Vanderbilt, with the aid Of J.
p. Morgan.
The stocks Of two OF the other trunk
lines. the Pennsylvania and the Bal
timore and Ohio, were decreased since
June, 1914. by amounts comparable
with the decrease in the foreign hold
ings Of New York Central stock.
Traced to Causes.
These statistics suggest that Eng
hsh investors had not appreciably re-
dueed their holdings Of the great block
Of stock which the late ]. p. Morgan
sold in London shortly after William
II. Vanderbilt succeeded his father, the
Commodore, as the absolute owner OF
the New York Central corporation.
incidentally Il may be reported that
sometimes when men Of finance speak
OF the unparalleled depreciation in the
market value Of railway securities, and
especially Of such prime securities as
represent the obligations Of the New
York Central, the Pennsylvania and
the Baltimore and Ohio railway COM
eanies, they refer to this downward
movement in part to the sale in this
country Of great blocks OF railroad
securities. which at the time the war
began were held by English and other
investors across the sea.
The incident which the substantially
complete absorption by the United
States of New York Central railway
stock since 1914 suggests il one which
is associated with the first spectacular
triumph of the late ]. p. Morgan. Mr..
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 Mr.. vanderbilt owned
almost all OF the New York Central
stock and that he therefore repre-
sented the danger which many be-
lleved TO exist II there were one-man
control Of a great railway system.
Chauneey NJ. Depcw's Recollection.
Shortly after Mr.. Depew retired from
service as United States Senator he
spoke In some detail OF the transaction
In which Mr.. Morgan and Mr.. VAN
derbllt were, upon this side of the At
lantic. exclusively associated with
bankers in London. Mr.. Vanderbilt,
according to Senator Depew, was
greatly distressed by the increasing
criticism which referred to his one
man power over one OF the greatest |
OF American railway systems. Fur |
thermore, he was alarmed lest the |
Legislature at Albany, in view OF his |
almost exclusive holding of New York |
Central stock. would impose not only |
Immediately heavy taxation, but con- !
stantly increasing taxation. He was
informed that this disposition was not
merely political. but did reflect a
strong feeling that prevailed through
out the State.
For that reason Mr.. Vanderbilt de-
termined to sell a large block of New
York Central stock provided that
could be done discretely and without
depreciating the market value of the
stock.
While still much perplexed. for he
was unable to think of any plan by
means OF which the disposal of the
stock could be made without depre-
ciating in market price, Mr.. Depew
suggested that Mr.. Vanderbilt have a
conference with J. P. Morgan. This
Mr.. Vanderbilt was all the more
ready to do because he had been in
formed while in England Of the sue
cess Of Mr.. Morgan in negotiating in
London some 500. .000, 900 Of United
States bonds. That was a negotia-
ton which first brought Mr.. Morgan
to the attention OF men Of finance
who were then Of great experience
fnd capacity. A conference with Mr..
t6organ was held. Mr.. Morgan did
not know when he was summoned to
meet Mr.. Vanderbilt, what lay be-
hind the invitation to call at the New
York Central Office.
what Mr.. Morgan Did.
Mr.. Morgan was not long in finding
out the purpose which lay behind Mr..
Vanderbilts invitation. For Mr.. Van
derbilt said to him that there was
great danger that the legislature and
also the city Of 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 the protection Of