The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-01-30
JAR GOULD AND PACIFIC MAIL.
Carrying u Heavy Load with no Prospect Of
RcIiel-sh uiIIecOck Sinck.


To THE EDITOR OF THE SUN-Sir: After
Gould had been saddled with the major part Of
Pacific Mail stock in the neiehborhood OF % by
the failure of his agents In Washington to In
form him correctly as to the action Of the judi
ciary Committee in the repeal Of the subsidy, lie
found It necessary to do something at once to
sustain the price and his credit.
OF course the stock was almost worthless with
enemies In the Board Of Direction and the sub
sdy taken away. The enormous swindles OF
Stockwell aud the speculations Of the directors
generally had swept away all OF the assets. In the
shape of securities and money, which the cor
poration once possessed. Deots were owing in
every conceivable direction, and as they m atured
10 became necessary TO meet them. For several
weeks It was a difhcult task to keep the Sheriff
out OF the Pacific Mail ofices, aud Gould's re-
sources were severely taxed to prevent such an
undesirable event.
his name and that Of bis brokers on the books
of the corporation, he demonstrated to the
board that he possessed controInnE interest,
with parties inside aurceeded In obtaining the
resignation Of number OF directors, and the
election OF his own friends to the vacant places.
OF course by this steD he obtained control Of
the information regarding the company nnan-
cm condition himself, and at the same time
prevented Others from using any new develop
ments against his interests. Tho OUTGOING ditec-
tors being wealthy and well informed, put their
friends on their guard against buying the stock.
So conclusivey did they present the matter TO
the spectators Of Wall street that Gould was
unable to m arket his stock, aud was Obliged to
hurry about In every direction shining for
money
stagnant Tor anv protracted season, and so one
new sensation after another was brought to
Hight. ana the stock marked M in the neighbor
hood Of ". Every effort to unload. however. re-
suited In failure. and only small amount of
real stock could he sold from 40 down to 3ld&.
In order 10 derive some benefit from hia heavy
holdings OF stocka, Gould resorted To the de.
vice Of selling puts, when The price was at
NE t"p am ~ 10y nrne,,e ,ro ns quo'aohS
In this he was moderately successful; but so
far As selling the stock u concerned, Their has
large nor Wall street spectators will hnv Pacific
Mail or Union Pacific; and their activity and
strength at times result entirel, from the pur-
chases Of Gould and his hrokers.
Whenever these "prvil yes on PIcinc Mail
expired. and they generally matured IN series
and at the same time, Gpeld dropped the stock,
and nj II and - attempted to induce short
interest.
The stock which le sold has been mainly In
people who were short at low hcures. and
becoming frightened rushed IA anu covered VI
the advance.
As this Is returned IN settlement ~ tie con.
tract there could he no pHciug II inve-tmeni
stock. ana Could bus been cpmneled To strug
gle along under a constantly increasing burden
without n corresponding mere So Of resources
The story invented to account for an iucreas,
In value after he obtained control WAS that b,
the acquisition ot Pacific Mail that compan,
and Union Pacific mnnupnliZ'd the carry inl
trade between the Pacih am Atlantic, which
was before matter Of competition. 1t vas sale
! tnat rs frcghts were raised ON both lines the,
| equally derived hrucht from the combination
/ MS might have been the case had IL not beef
Tor the attitude OF the Panama Railroad, wuicl
! forced Pacific Mail To- turn over an uuu.u d pr
] portion Of prices for trans ortatiOu across th'
/ isthmus.
80 heavy wa this tribute. and A. antngonis' {,
! the attitude OF Park aud Guull. that Ptclai
! Natl his been crushed between two ertndstuues
/ and Union Pa ihc and Panama have dr in,t
| away what little vitality tue steamship CONS pan
| pa.-e-- "a when Gouid bought u boy mi take.
| JAN ~. SIiUABOUT.