The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-02-10
JAY GOULD,s HEAVY LOAD.
Can He Garry linton Pacific and Paciac Mail 2
Only eI2,OOO,OOO Needed.


To THE EDITOR OF TIE SUN-Sir: In
many quarters II Is believed that jay Gould
owns the grolter portion OF the Union Pacific
stock certificates, aud 1t Is said, In res to
any assertion that the price will decline to It's
| old quotations when the road is Obliged to stop
paying dividends: "Oh, Gould will never let the
stock go down; he'll stand there and buy 1t all
and make the shorts cover, II he has to put up
every dollar be has in the world"
| 1t Is noticeable that none OF the Wall street
spectators buy Union Pacific upon the theory
that Gould will protect 1t at all hazards. They
merely leave It alone, afraid either to buy sell
| II short.
| The Boston people, who have not had so much
experience OF late years with Gould as when
| Fisk lived have been drawn Into the bull specn-
latlon, and have aided by purchases OF stock
and bonds, and with loans of money from their
| financial Institutions, to maintain 1t.
These men who are now trusting In Gould
and his promises were obliged to move the
| Offices OF the Union Pacific Railroad from New
| York to Boston, In order to escape from his
prosecutions, several years ago. When Gould
| ftends manage to borrow and let him have IT,.
| They accommodate Gould, supposing he will
| fulnl his promises to enable them to sell out
the stock and bonds at high figure.
judging from his performances IN the past II
extreu ely unlikely that these people would re.
out. unless Gould had slipped out himself aud
man gnd to sell short, when he would be apt
To get tuem to unload stock to cover hts con-
| tracts.
Gould has worked In every way to encourage
the belief that he Il financially able to buy all
the stock that Is sold. and In this way he avoids
competition In hts selling and IL able to negoti-
ate loans to good advantage IN Boston and from
a few financial institutions IN this city.
1t Is said that when the first news Of the pro-
jectcd establishment Of the new steamship line
between New York and san Francisco reached
him, he WIS COMPLETELY Frustrated and could
with difficulty believe that such ascheme would
| be put into execution by the Panama board.
Hts desperate attempts to defeat the project
| by means ~ procuring an iniuncton from the
| courts prove that the scheme lnterfered ma
terially with the execution Of his own, and his
subsequent movements IN the stock market In
dictate tnat he hos been obliged to prepare for a
forced Liquidation.
Tue way in which this Ia brought about is as
follow:
When he obtsined control OF the Union Pacific
and Pacific Mail aud began to pay dividends
upon his stock, the bauks, Boston people, and
financial in.tiiutions generally, believing that
the road was making money, advanced larger
amounts upon the stock than before.
Tho certificates of road upon which eight
per cent. dividends are being earned GER
tainly more valuable than when only enough IL
made over and auoVs expenses to pay the inter-
est ON the bonded debt.
Gouli then put W the price % the stock from
abou f1ity To seventy I've. The money lenders
advanced from tutrty-uvc TO furty-nve uunn T. .
Hitherto they had thought fifteen or twenty suf .
nrient.
o. course the dit ,rcn,c between the market
IL
aoout thirty ger cent, was made up 10y Gould's
marlin.
certain amount OF stock was held bv the
Boston people, small numoer Of IA + 10y the
public, and the REMINDER ON GOIld's own ac-
count. Guuld's hoiGin-l aSsreglted when he
entered tue Union Pacific direction 1918 %
shares. ami after all the mauipuiatlons and the
rise since lie obtained control oil T. chi Natl
lite Is now the possess Of not far from $1,000
shares
white the road pays eight ner cont aivl lends,
the money lenders nr. vii inc. 10 n,tvtnc. t1eir
flt m IA IN ff.al. mod
Gould's 2n,Vt shares are amply provided for by
his m rsin and the lptns he dot ms upon plcige
OF the ccrtih' ICES. TIE short sales and reaii-
zati rs Of investors are also not 30 hard 10 take
care II.
which tue broker chirg :ur triynr the stock,
ami So long as money romans easy It would
seem not q difficult task to .rry Union Pacific.
But tie establishments Of a new line oi steam
shirs between New York and san Francisco
forces tue Pacin' Nal and Uti1n Pacific corpo-
| rat !ons g. return to old charges for passengers
and freight. Nobo ~ pretended thst Union Pa
enc could elin any stock dividend whatever be-
fore the rates we're put up " the rurchase Of
Pacific VI a.. Gould, wac owned Union Pacific
tor fail year before he put w the price OF the
stock on ire estaniis 1nent OF the Increased
tarf. va, fully convinced tina. the road could
not earn dividend save uY the lapse OF time, or
by combination with Panama or Pacific Mali.
No long time has elapsed since the stock
was selling at 50. Tie combination with Pa
enc Mall has occnrrcd, and Union pacihc
tlhlishment q new steamship line. has been
broken. and Union Pacific, with reduced tariff, ,
Is worth but triio more th.n one year ago.
The re isOn whY Gould is .ettiugIeAdy to haul
date l. that the parties who taVe advanced
money NJ he rates OF rom % u - upon Union
Pacific VIII reduce their limits To the former
ones 81 from 10 to -, as soon as they arc con-
WINGED that the stock Is not worth more than
the prices which ruled a year ago. Then Could
Will be comuced 10 furnish his brokers from -
u . ger cent. upon 2U,ouO shares of the stock,
ana millions OF dollars worth Of the bonds, or
let the quotations drop t. former ngures.
Whether ne u ablo to do this and at the same
time take c re Of the remainder OF the stock and
the bonds which Will be put on the market i'm
medi tcly ~ his Boston friends Is a matter Of
opinion. IL will need but $l2OOO.0J0 or 81 ,OOl-
CO.. IN cash to buy everything, Tx up marslns,
aud put the stock to any figures which may be-
desired. Perhaps the brokers VINO have recent
" Withdrawn their allegiance from MIR. Gould
can give some Information as to the probability
Of his furnishing this amount. STIRABOUT.