Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-06-08
THE RAILROAD SITUATION.
new Combinations That VIII be Heard
From sOOn-DisastrOus Results Of
the War Between the MOnOPOlists-
Iay GOuId's Coming Triumph.

New Combinations That VIII be Heard
From sOOm-DisastrOus Results OF
the War Between the MOnOPOIists-
Jay GOuId's Coming Triumph.
United States Economist.
Interest in railroad affairs continues
to increase, and occasionally it reaches
the point Of excitement. Although
the competition between the great
through railroad companies has already
produced the most important results,
yet the impression prevails that it is
destined to develop still graver issues
IN the Lot distant future. The market
for railroad securities is characterized
by eager, watcbful excitement, and the
operations of the various cliques occa.
sion all sorts Of rumors and reports.
Individual brokers follow closely and
watchfully the movements Of "the lead
ing operators, " and buy orsellaccording
to their understanding of the policy of
the great capitalists of the street.
There is still an increasing demand
from outside parties for good interest
bearing securities for permanent in
vestment. But it is getting to be more
difficult to determine what may or what
may not be interest bearing" securi-
ties. 1t is limited that combinations
have been formed that viii materially
change the list Of quotations within the
next sixty or ninety days.
The Erie reeeivership, and, prilna-
rily, the railroad war;" initiated at
Saratoga last fall, may be regarded as
the causes of the Enchanting, as it
were, Of the railroad elements. This
necessitated new movements and new
combinations. Then, again, the bust
ness depression caused a heavy falling
off IN the fr,ights, and the through
companies were compelled to cut down
rates to suit the times in order to avoid
running empty cars. This was losing
business to all the companies, but to
none more than the Erie, which vas
least able to bear the strain, and so it
speedily drifted into the legal insol-
vency which has long been a matter of
fact. Even the great Pennsylvania
Railroad Company acknowledged the
pressure by reducing its traditional ten
per cent interest to eight per cent.
Now, we have President Scott admit
ting a loss of $4,000 on the
gross earnings during the first four
months Of the present year. CommO.
dOre Vanderbilt is as uncommunicative
as usual, and refuses to give any in
formation of the affairs Of the New
York Central Railroad Company. But
there can be little question that it has
suffered somewhat, though probably
not to any serious extent. President
Garrett complscently says that the
Baltimore and Ohio Company is max
ing more money than ever before, aud
that the rivalry is a source OF profit.
But it Is somewhat OminOus that the
trade Of Baltimore has heavily fallen
of during the last five or six months.
1t Is also known that a large amount
Of paper belonging to the company is
floating IN their money market. In
fine, there can be no question that the
railroad war" has proved more or less
disastrous to all the parties concerned,
and the sooner 1t is ended the better it
viii be, both for their own interests
and those of the public.
IL NLC A4ocAnLAL4Es ACh anu Ndub
railroad combinations are known to be
IN progress. The Erie disruption has
brought the inevitable Jay Gould to
the front once more, and he is credited
with any amount Of intrigues and plans
for recovering his lost place inthe Erie
management. It is believed that the
natural tendency Of events viii con-
tribute TO Il lis result. The connecting
lines now operated by the railroad
syndicate, Of which Jay Gould is the
master spirit, are the Central Pacific,
Union Pacific, Kansas Pacific. and the
st. Louis, Kansas City and Northern
Railroad lines. This completes the
route from San Francisco TO the Mis-
sissippi river at St. Louis. The con-
troll Of Erie is all that is required to
complete the missing links from the
Mississippi to New York and the At
la1tic seabOard. a combination of
this kind seems TO be only a question
Of time, and it row looks very much as
if it we're destined to be effected at no
very distant period under the auspices
of Jay Gould.