The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-06-10
JAY ooULD,s srexAI psrr,xr.
No 10 Beaten IN the Csier.de Cersr.i Rail.
road Election.

To THE EDITOR OF THE suN-Str: From
present appearances the Affairs Of the Union Pa
cinc Railroad arc likely to occupy an unusual
| share Of attention the present year. IL IL be-
coming more evident from day W day that
Gould is too heavily bsndicapped by stock spec
| ulation to pay proper attention to the interests
| Of his great monopoly, and for this reason his
| possessions are passing away and his monopoly
will soon have become q thing OF the past.
Up to this time there has been no infringe
mont Of the Union Pacific monopoly in the car
| ryine trade overland, but the Developments Of
the last few days indicate that that railroad cor
| poration IL about 70 be beaten on its own
ground.
| Early In tho spring OF last year, the privileges
| OF the Kansas Pacific, which 1t possessed under
| the rights granted by Congress, engroesed
| 0ould's attention; and he forthwith set his
| wires to work to utilize them In connection with
hts own property, the Union Pacific Railroad.
| The Kansas Pacific possessed the right by its
| chatter, 10 carrying passengers and freight from
| the southwest to its connection with the Union
| Pacific at Cheyenne, TO exact a pro rata tariff
| from the latter corporation on that portion Of
Its business going through past Ogden. OF
course any freight taking the southwestern
| route could be sent by the Kansas Pacific, and
| lower rates obtained than II II were sent over
the Union Plcinc via Omaha. This right OF the
Kansas Pacific To pro rata was disreRardod py
| tDe management OF the mon Iacinc, previous
| to Gould's accession to contrOl. He, however,
said that as the right was nxed by act Of Con-
eress, the Kansas Pacific could Insist upon its
| privileges, tnd exact ther observance by an up
| peal to The courts.
He therefore entered into negotiations with
| the management Of the Kansas Pacific, looking
| to Il settlement OF the matter at issue upon a
basis mutually beneficial to both corporations.
| In the frst place a large quantity OF stock as
bought Ia tue Kansas Pacific. and then II was
| proposed that the Union Pacific should give the
| former corporation the benefit Of ali the local
1 a. kf,tlld
abandon Its right TO demand pro rata from tue
| Tho Colorado Central, too-a road which con-
| meets with the Kansas Pacific at Denvef-was
party to the arrangements, and as II is Intended
| to connect with the Union Pacific 237 miles west
| Of Denver, II could not be lett out without en-.
dsneering continuance of the projected mo-
| nopoly.
| An agreement was therefore entered Into by
| Witch the Kansas Petite Railway Company and
| the Colorado Central Railway Company We're TO
| be consolidated under the name 81 the Kans
Pacific Railway Consolidated, with capital Of
| t2O.UCO.0O
OF the consolidated capital stock s1o.Ooooo
were to be issued to parties DESIGNATED 10y the
| Union Pacific Railway Company and all the out
stsnding shares OF the Colorado Central surrerI-
| dered, aud the residue issued to the Kansas
Pacific Railway Con, any to be distributed In
| exchange among iis stockholders.
The consolidated company was to issue ite
| coupon mortgage oonus to the amount of 5000
| OUO. having thirty years TO run and bearing yer
| cent. interest, payable In New York, the mort
gage to contain such clauses and provisions
psny, subject to the existing mortgages Of the
| Colorado Central and to the existing nIortraaes
| OF the Kansas Pacific Railway
| OF the $5.uD,0yO Of bonds, kl25O.OOO were to be
Issued by the Kansas Pacific hallway Consoli-
dated In retrina the outstanding income bonds
| OF liza original Kansas Pacific hallway Company,
| At the rate Of not more than thirty per cent. OF
their face, exclusive Of interest, and $4,000 to
amount OF AN issue OF ti,l25.Oo0 OF outstanding
bonds issued oy the Arkeusas Valley Railway
| 4. cifc Halfway Company.
There were also to De issued to the Union Pa
sI.OoUO when were to he used IN ~
| tluguishing tho Indebtedness OF the Colorado
that the Colorado Genital. when consoiid.l
suaii be Tree IRON Indebtedness, except its
| funded debt.
1he residue OF the consolidated bonds were
| to remain Ia the tro lsury Of the consolid ated
company, t. be used 20 redeem and retire GER
tain other bonds for winch IL IA Responsible, and
| the Others taken no were to form part Of the as
sets OF tine consolidated company.
| All stock and bonds OF the Junction City and
| Fort keerney Railway Company, the Ark ms "
| Valley Railway Company, tae Denver BvuId er
| Valley Railway Company, and tue COioradp Gem
trial Railway Com pany, owned by tue Uuion ia
| cine or Kansas Paciuc Railway Company. were
to be tr4.sferrsd To and held oy the trustees ia
the tS.ooo-uco mortgage ss additional security.
| When Ia. arrangements for this consolidation
abandon to tie consohd ated company ali the
| local ttanc In Colorado: the consolidated com
| truthc west of Cneyenne.
GA May :, 1875, therefore. fusion ticket WIS
| parity Vi The old directors and partly OF Gould's
| friends.
GOuid's monopoly. therefore. seemed assured
| anu the Slu,tOOOOO OF stock III tue consolidated
| COMPANY. Issued to Parties deeignated by the
| Uniun Pacific Corporation, seemed TO have teen
| handsomely captured.
| II seems, however, that Gould did not please
| the parties win wnom the contract had been
| made, for they allege that while they were wlii-
| Ing anu ready TO carry out their agreements he
| did not keep HE. nile he Insisted ON their
| observance Of tue contract. he did not FUN his
| own pledges.
Last month an election was held In Golden
| Guy, Colorado. for directors of tho Colorado
| Central. aud to Gould's Minute surprise and
| ohacrtn his ticket was defeated and the Odd
| board reinhtated. lnis arose from the defec-
| ton of the Kansas Pacific interest, and the
| consolidated COMPANY being now broken up
| the mon Pacirc mouopuiy h endangered. ne
| proxies winch Could sent West 10 be voted on
| were held to De Informal.
Inf ,TluatiOn ia regard to the matter has I'm
| some way been suppre,set, although tue result
| III COlorauo. The old directors nave succeeded
| IN getting possession OF the of1ces nd road. IL
Is ssid that Gould u about To L-gn procee d ings
| tesihst them Ia Tue courts. At present, how
ever, he Is on the OUTSIDE, and the agreement
| between the kansas and Union Pacific Railroads
| IS at 4 end.
| IL the Kansas Pacific insists upon its rights
| shippers 10 Jaiiforui, will now ind a relief from
| the extortion to which they nave been sub
| Jscteu. STIBABOUT.
Who the Columbia Crews Captain IL.