The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-03-04
jar GOULD'S LOAD.
Vain Efforts TO shake of Pacific Mall and Tall
Tower stock.

To THE EDITOR OF THE SuN--Sir. In
January Jay Gould was loaded with not far from
$1,000 shares of Pacific Mail He had been sad
died with II in HE different efforts to advance
the price OF the stock uuon the strength Of the
monopoly which was supposed to exist by his
control OF the carrying trade between New York
and San Francisco. lie had at different times
used the Tribune to bull the stock upon chlmer-
ical stories OF Australian subsidies and remarka-
BILE combinations between Panama and Pacific
Mall. His intentions were, so far as can be as
certalnod, - week up Pacific Mail and Union
Pacific to similar figures in the neigh borhood OF
eighty, and then unload his entire holdings upon
Wall street. In this way he would have realized
an immense fortune on the bull side OF the mar
ket, and by selling the two stocks short imme-
diately afterward, by a sharp bull movement,
have duplicated II In the subsequent decline.
Had not his preedness interfered, 1t Is
likely that these events would have happened,
and that he would have added many millions to
his present fortune.
His great aim has been to throw the bulk Of
the traffic between New York and San Francisco
over the Union Pacific, because in the latter
corporation he holds over two hundred thou
sand shares, and large number of the bonds,
while in tho former he held fully one-thrd OF his
other interest. When he raised the passenger
rates and freight tariff after obtaining control
of both companies, from New YORK to san Fran
cisco, the result followed that people and mer-
chandise went by Uuion Pacific because with
equal charges the time was much less by RAFT
road In this way Pacific Mail suffered. and also
the Panama Railroad.
Heavy freight which would ordinarily have
been tarried by water went across the continent,
and the tolls replenished the treasury Of the
Union Pacific, In which Gould held over 100000
shares, while that of Pacific Mail, In which he
held only 5000 shares, was correspondnply de-
pleted. The Panama Railroad also lost money
by the decrease In traffic.
The latter corporation was controlled by a
different board from the other two. ana very
short trial OF the new system was sufficient to
convince the members that It would not answer.
so proposition was introduced into the Pana-
ma Board providing for the organization OF n
new line Of steamships to run between New
York and san Francisco by the way of Panama.
II WIS believed to be necessary to secure to the
road It's fair proportion of business. When
brought to vote II was decided to become re-
sponsiplo for the price Of the steamers. and
authority was given to purchase such vessels as
were adapted to the traffic.
Here Gould appeared with objections esnanat-
Ing from his fertile brain. lie Is lawyer OF no
mean merit ard soon managed to throw OBJ
stacles In the way OF the Panama board by pro-
curing an injunction restraining II from the
establishment OF the new line. A railroad has
no right to run any concern for which II Is 1nan-
cially responsible outside of the objects men
toned In its charter. Here Gould thought he
had the Panama people, and the Court sustained
his petition. There IL no law, however, to re-
strain the directors from doing anything for
which they do not make the company respon-
sible; and mere, to his sorrow, the Panama board
had Gould.
At nrst Gould did not believe that the Panama
directors were In earnest, and that they would
dare to light him by an opposition. Il was not
until they evaded the injunction that he became
| convinced that they meant business
Then he went 90 work upon lighting basis.
| He knew that while they were hng of Panama
| they were short Of Pacific iall, Ind he began to
think OF expedieuts to PIT W Pacific Nail and
| to put down Panama.
The II lhno was ordered TO write down Pan
| anna, and young poet was sent down TO the
isthmus as an agent to STR up trouble
| ment. Panama paper was fixed, and TIE
| Tribune teemed with startling news about the
peril of tue corporation and Its rotten and shift
| less condition. so judciously and powerfully
was this done that Panama went up from l25 to
| l3l, and the Tribune became involved in an
$lOO,0OO libel suit. Gould did not appreciate the
fact that the Tribune was known TO be controlled
| by him, that it, editor was known to DO his
| stool pigeon, and that any assertion OF either
| himself or the paper with any money Involved
was generally believed to be a lie. Gould finally
became alarmed. and began to give out points
| to friends to purchase stock. At the same time
he induced Irwin to return to give testimony
upon which suits might he commenced against
| wealthy parties which would act as a support TO
| Pacific Mail
Many people bought stock upon the promise
| OF Its becoming an eight per cont. security, but
| Irwin, detained In a snow bank ON the Union
| Pacific Railroad did not get here In time to fur
1her GGsds P r,ysd lie hnmSSG M,nmes1 r
| Every one of Gould's projects to keep 10 the
price Of Pacific Mail failed. he believers Ia his
financial strength and promises were loaded
with stock which he could not support. Their
position now u subject to the ordinary intiu-
| ences OF the market, aud perhaps to antagOnis-
tic action on the part Of Gould, who is always
anxious to give u KICK to any project which he
has failed in supporting.
One thing is certain. however, the Panama
people have beaten Gould at his own game. He
| has been forced to unload very large amount
| OF Pacific Mail at heavy loss. Whether he has
managed to make up his losses by sales on the
| short side OF Western Union amounts to little
| He has dropped Pacific Mail and that unwIll.
| ingly. as appears from his desperate efforts with
| tue Tribune, his stool pigeon, the MinnesotI
Commission. aud Richard Is. Irwin Every card
PLAYED has oeen a bad one, and Pacific Mail Ii
| fifteen per cent. lower than when he owned So.
| 90 shares. His control in the company has re
| suited as IN all Others where he has been con
| cerned. The stockho .ders lind themselves mucr
| worse Oh when he goes cut than when he went in
| The influence OF this move OF GOuld's VIII Ger
tsnly react strongly upon the bonds and stock
OF Union Pacific, which nave become compare
lively vdlueless by the dissipation OF the mono D.
| ly which has so long existed between the
| Atlantic and Pacific coasts. AT present he l.
| aLtemptin to mold up more than 20b,GQ shares
| OF this stock, which one year ago sold at 80 III
| the nciRhhorhood Of %. lie Is attempting to dc
this because the average cost OF the stock was
very high, and he cannot sell out except at a
loss which would weaken the ROthsChilds. III
| this strait even the pittance which the Tribune
| shares would bring, will he welcome, aud as
| drowning men catch at straws, SO Gould Is try.
| ing to sell out the Tribune for whatever the
highest bidder offers, eager to use the proceeds
| In sustaining his gigantic speculative bubble.
SrIRADoUr.
| CLARA MORRIS VERY III.