Evening star. [volume] (Washington, D.C.) 1854-1972, 1958-01-26
Stormy Path Led Young
To RoiIroodinq Fame

ping on the Gao but It didn't
| work.
He sometimes goaded the In
dustry with full page news
paper advertisements.
"A hos can cross the country
without changing trains-but
you can't" one ad proclaimed.
| A short time later through
service was established by vari-
Gus combinations Of roads. but
Mr. Young complained that q
travellers trip stiii was delayed
several hours by switching
operations In Chicago.
Attacked Control by Banks
He was an outspoken foe Of
banker control Of railroads.
Bankers, they're the trouble
with q lot Of railroads." he
once fumed. Bankers don't
pretend to be industrial man
ayers. What we need Is more
Ownership interest In railroads.
That's what made some Of our
biggest corporations"
Once firmly established in Al
leghany and the c. a. o.. he
Iset his sights on the New York
Central. with its l0.7l4 miles
of track. and assets In excess
of $2.5 billion.
The assets included some Of
the most valuable real estate
In the world. but the road also
was heavily mortgaged. Its net
bonded debt exceeded $500 mill
lion and It's total funded debt
more than $500 million.
Mr.. Young was helped in his
famous 1854 battle for control
by two other fabulously veal
thy Texans Sid williams
Richardson and Clint w. Muir
Gibson. ST.
/ Richardson and Murchison.
lifelong cronies. bought 800, 900
shares Of Central stock for $40
million in order to vote the
proxies for Young.
The transaction was involved.
The 100000 shares which came
into possession Of the pair were
owned by the c. q o. Railway.
of which Mr.. Young formerly
was president. The c. & o.
had acquired the stock during
his presidency. but under a rul-
ing by the Interstate Commerce
Commission could not vote It
In the election Of the New York
Central directorate.
Mr.. Young explained the
transaction for a Senate Bank
ing and Currency Subcommit-
tee IN 1855. He said the ALLIE
ghany Corp. Railroad Holding
Co. Of which he was chairman,
advanced the two Texas multi
millionaires SIS million, and
the remaining money came from
another friend and q midwest
ern banking syndicate.
/ White Fought Back
William White. president Of
the New York Central fought
back when Mr.. Young declared
he would appeal to the roads
stockholders. dangling hopes Of
huge increases in dividends.
after his FIRST bid for board
chairman was unsuccessful.
Mr.. Young called the Central
directors q Morgan. non-own-
ership board"
Mr.. White declared Mr..
Young was setting up a straw
man" with this myth" about
a Morgan-controlled board.
IAN dictators like TO set up
straw men," he said. Those
are Just tactics Of little
Caesars"
/ 1t was estimated that in the
heated campaign the two sides
spent hundreds Of thousands
Of dollars in newspaper adver-
tisements alone.
Hated Ofiees
I The issue was carried TO the
annual stockholders meeting
at Albany. N. Y. in the spring
Of 1854. Both sides guarded
their proxies as II they were
golden treasures. The White
management sent its proxies
lin a baggage car under heavy
guard. while Young's group
engaged armored cars for
transporting locked safes hold
; ing its precious papers.
The inspection Of the election
decided in Mr.. Young's favor
the dispute over the 100000
shares-representing 1874 per
cent Of the outstanding shares
the two Texas multimillion-
aires had bought. But it turned
out that Mr.. Young would have
won without these shares.