Re: (erielack) Re: the West Shore; J.P. Morgan's yacht

["Tim Stuy" <njmidland_@_verizon.net>]

Morgan was very involved with the railroads.  Probably the biggest
reorganization in the 19th century was the 1893 Northern Pacific
reorganization that J.P. Morgan put together.  From an EL perspective, he
had bought up a number of Erie securities in the 1890's.  By 1898 the
independent NYS&W with its Wilkes-Barre & Eastern and Susquehanna Connecting
Railroads were undercutting the coal rates the Erie could get and were
attempting to lease the Erie & Wyoming Valley.  Morgan stepped in and bought
control of the NYS&W and then had the Erie lease it.  In 1907 the Erie was
near default and Morgan again stepped in - this time getting one of his
allies, Underwood to take on the presidency of the Erie.

Tim

On 8/8/06, J. Henry Priebe Jr. <root_@_net.bluemoon.net> wrote:
>
> On Tue, 8 Aug 2006, Philip Martin wrote:
>
> > Regarding peter Heimbach's post on J.P. Morgan's influence on PRR-NYC
> > competition, I wasn't aware of it.  I don't know much about Morgan, and
> > didn't know that he was concerned with railroads.  But it certainly
> makes
> > sence.
>
> I believe J.P. Morgan was the NYC's main banker as well as a banker for
> several other RRs.  He was upset by the wasteful cutthroat competition
> between
> the PRR and the NYC. Andrew Carnegie, Henry Frick and some other
> industrialists were tired of the PRR's stranglehold on Pittsburgh so they
> naturally backed the South Penn. William K Vanderbilt had been getting
> nervous
> about how much the South Penn was costing and was looking for an easy way
> out.
> I recall reading that Morgan told the presidents of the NYC and PRR
> (George
> Roberts and Chauncey Depew) that they weren't leaving his yacht until a
> deal
> was worked out.
>
> Henry
>
> J. Henry Priebe Jr.    Blue Moon Internet Corp Network Administrator
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