The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-10-12
Jay GOULD,s OPERATIONS.
How he Use- Ills Tribune TO Pull Down Great
HntIrond Corporntions.

Hntirond Corporations.
To THE EDITOR OF THE SuN-Sir: For
| three years past Jay Gould has been heayll,
short of New York Central His original line
was 10,009 shares this was put out az the close
Of the panic Of 1873; lie has increased II from
time to time until he is short Of not far from
1000 shares.
At least sixteen per cent. must be deducted
from par for dividends paid out, az each diyi-
dend must be taken from the price at which the
stock rules when 1t Is declared. Besides this,
there has been a large premium for the use OF
the stock almost daily, amounting to about
twenty per cent. on the entire line.
III is safe to assume, therefore, that Mr.. Gould's
shorts at present show him a loss OF not far
IRON tl'oOOUOO. THIS Is a large sum OF money,
and he will fight desperately to Get It back.
Pacific Mail In 1874 only stood sI5O,OO0 against
him when the managing director. Rufus Hatch,
worked tho bellows and pured up the price to
"a. Mr.. Gould was short at 49, and bending his
energies 20 tearing down MIR. Hstch's fabric, he
"a loss.
This million and one-half Of dollars can only
be recovered by severe break In New York
central. JAY could has, consequently, set hts
engines Of destruction at work to accomplish
Foremost is the Neu FORK Tribune, edited by
hls tool, and run entirely to further his stock
A series Of articles has been prepared caicu-
,ated TO destroy the faith of investors In the
their holdings upon Wall street. These are pub
ished at suitable intervals that the Investing
pubic NAV not rush la and take away his mar
ket. but rather drop out, continually leaving the
Commodore to buy their stock.
knowing That Commodore Vanderbilt Il I'M
aole 20 attend to business details, JAY Gould
mas selected this season as an opportune one to
produce panic In Central and make favorable
Not, only has newspaper influence been in
SSoked 10 destroy the confidence OF the public in
spared by Wall street manipulation To- inlure
central 10 prospects and traffic
@, me SIRE WIDEST move Of all mas been In Lake
Snore ana Michigan Southern Railway stock.
ms road ia OF great value to New York Central.
because It has the largest through and local
trame OF any Of the lines running from tue East
into Chicago. Its gross earnings are nearly as
Urge az the agere1atc Of its connecting lines,
ana IN the pooling OF 1875 II was allowed $ls.000,-
90 out OF the estimate Of SlOOOO.O0O Tor the
western connections Of the seaDoard trunk
lines.
Knowing that New York Central needs Lake
Shore rs AN outlet to Chicago and as tributary
10 us own trafnc Jay Gould has quietly bought
up immense blocks OF the stock OF the latter
corporation during the last few months, with a
view OF bringing Commodore Vanderbilt to
terms upon the short line OF New York Central.
III the Commodore viii not hand over enough
Central for Mr.. Gould to cover his shorts with
out loss, the latter intends to elect Ills own
board for the Lake Shore direction, aud turn
over ITS trafhc to other trunk lines.
., ~ tnis wa, ne believes that the market price
10 enable MIN To cover his forty thousand shares
without loss. II the Commodore sees 1T to sell
enough New York Central to MIR. Gould at the
latters price to cover the forty thousand shares,
he would insure the Commodore control Of
Ike shore aud sell out the stock upon the
market thus created. So far jay Gould has
worked his cards very adrOitly, both In his pur-
chsses OF Lake shore stock and in concealing
Central.
wnilc his principal brokers have been picking
M Lake Shote largely at about htty he stayed at
Long Branch and apparently dill nothing at all
IN W all street. His newspaper continu NV threw
ulscredt on the movement. thus enabling his
active brokers to buy large quantities Of Lake
| shore without materially advancing the price.
In order to keep down the quotations. their
credit mas been iinpugned, II being evident that
| III they were unable to take all offerings specu-
latots In tue street would not compete with
10 crown 1t all, Jaw Gould went West several
| weeks ago, lest lie might IN some way seem con
nected with the manipuiatiOns OF the market.
Since theu Lake Shore has been bid up, the
pool being supposed to possess about 10000
shares. This IL IA warm Invitation for the Conn
modore to step up aud settle. The Trtbun, at
tue same time continues its figures and articles
ON New York Central. a staff Of railroad account
ants navins been So cially employed to do tue
work thoroughly
VIII the Commodore surrender?
jay Gould's situation IL weak nan II appears.
The Lake shore stock bought h IS been pur-
chased Tor the most part on light martins.
1t has been hyuotnecdted IN every conceivable
way, ana large -haves paid for carving.
II j. now held out OF Commodore Vauderhilt's
hands, and would be sufficient, with the addition
| o. lew lr' Nies' To carry the election.
But Mr. Gould mas not onsidered this point :
| tntN every investor VINO mas relied upon the hOu-
| esty and business ability OF the Nander1llts 10
hualy restore hls pr perry TO It's former condi-
| uon,~ould sell out as soon as II became evident
| that the railway wrecker would gun control.
Mr.. Gould could not, while weakened by bis
immense line Of Union Pacific. successfully
handle the investment stock wnicn would he
rapidly thrown upon the market.
The Commodore, IN any event, controls the
| Canada southern Riilroad. when would fur
nish temporary outlet for New York Central to
| Chicago.
| Holding alarre number Of Lake shore sec
l 90 ma ha IN t..t
| 10 buy IN the property II Could should obtain
control as the latter would inevitably ruin II in
] snort time, as has been the ease with most
| corporations where he mas obtained "a foOtholi.
| Ii y very doubtful whether Mr.. Gould, with
! his tribune and wal street manipuiatiuns, can
| destroy the confidence OF Investors In New
| YORK Central so rs TO cover his shorts, aud the
| Nandersit5 have simply to leave him alone to
| protect themselves and orng ABOUT his dscom-
| n.ure' cTIItAbOUr.