The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-02-08
GOULD'S LOSTNG SPECULATION.
Why the Tribune has Nothing TO Sny About
the New Pacific Mail Line.

the New Pacific Wall Line.
To TIE EDITOR OF THE SUS-Sir. It's an
interest ny fact that the New YORK Tribune Ia
entirely silent concerning the establishment OF
the new steamship line from this city to the
Isthmus Of Panama, and thence to San Fran
cisco.
The steamers will begin their trips in a few
weeks, and II H. understood that there VIII be
low charges for passengers and freight, so that a
fair share OF through traffic will seek that route.
This is matter Of gfeatinterest to the travelling
and mercantile community and IL might be ex-
pected that the Tribune would devote as ex-
tended a notice to It as to the failings OF the
Panama management. which are ingeniously
shown up from day to day.
1t would not serve he stock-iobbinR interests
OF Jay Gould, however, who Is IN n tight place
and trying to liquidate IN his losing speculatons'
Gould wants Panama depressed, so that he can
buy It, and Pacific Mail kept up. so that he can
sell out az as little loss as possible. The Tribune
then, fears Panama, and lie daily expecting
startling news from the Isthmus, where an
agent Of Gould's has been working for some
time TO stir up trouble for the road with the
Colombian Government. 1t IL hardly likely
however, that any news favorable to Goulds
interests will arrive from that quarter, before
the party who most desires to profit by II shall
have been compelled to settle his losses on the
two accounts OF Pacific Mail and Union Pacific.
by the influence which Gould yet possesses in
Withholding informant on from the public press,
he has contrived to leave spectators and in
vestors In the dark 10 the effect OF the es-
Enlistment OF the new steamship line upon the
value OF Pacific Mail and Union Pacific. No one
knows better than Mr.. Gould that he has been
euchered at his own game, and that his only
hopes now lie In either tho acquisition OF Pan
II. a., h. artR
between the Pacific and Atlantic. or in making
up the losses in the future decline OF Pacific
Mail and Union Pacific by putting out an extern
slve line OF shorts on other stocks, which might
be forced down several per cent. by the decline
OF his own. His movements in the market at
present point to the adoption OF the latter plan,
and, indeed, II is his only chance TO recoup.
Park and the contracting parties for the new
steamship line have gone to the Isthmus TO
make the necessary arrangements for transact
ING the business Of the company, and Gould,
unable even to get at Park to suggest a compro-
mise. is left at home to sell out his stocks.
It will be remembered that In the early part
Of 1878 Union Pacific was selling Ia the neigh
borhood OF thirty and that Gould aud his
friends during the year after he obtained con
troll had been unable TO carry the stock In their
nums rous bull movements higher than forty.
Every time that It adv anced to this figure Gould
was willing to part with his stock, and indeed
sold II down below thirty At times the quota
| lions lowered about, In bearish markets, nearer
twenty than thirty, and Gould expressed the
| opinion that the stock could only acquire a set
tled basis OF higher prices by the lapse OF time,
which would increase the trafiic OF the road.
Gould did not wait, however, for the lapse Of
time to increase the traffic and correspondingly
increase the receipts, but It occurred to his fer
IA
as easily at once ii he could charge higher prices
for passengers and freight.
The question was how to do this. II any ma
terial advance were TO be made In the freight
and passenger tariff, large proportion OF the
business would 20 around by way OF the Isthmls
OF Panama. So advance would result in loss
instead OF gain.
The road was just paying expenses and Interest
upon It's bonded obligations, and any policy
which would be likely to occasion the loss Of n
single dollar to its treasury had to be carefully
avoided.
Pacific Mail, at that time managed by the
puEnacous Hatch, was fighting to divert busl-
ness from the Union Pacific, and his heart would
have greatly reioiced had Gould raised rates or
proposed to raise them across the continent.
| Gould thought FIRST Of buying up Panama,
| and managed to purchase several thousand
shares, out when election time came he failed to
secure his Board Of Directors. He resorted, be-
fore the election to an immense amount OF WIRE
| pulling TO induce several prominent stockhod-
ers to give him their proxies. Luckily these
men knew Gould too well to trust in his prom
ises, and Kept their property out OF his clutches.
At TINS pointth IfDuHe came Into play and
| began 10 expose the corruption used Ia obtain
| INC the Pacific Mail subsidy Gould was enabled
by that assault on Pacific Mail not only to cover
DIS shorts IN the STOCK market at a handsome
| proht' out also To secure enough stock at what
he then considered low pricesto put In his di-
rectory' IL was damper' OF course' when he
iound out that Congress had taken away the
SUBSIDY ana thereby reduced the value OF the
properly fifteen per cent from what he bad
pousht at ana that the quotations should really
s'ahd AZ ~ instead OF %
Ater that nothing was lett Tor him save TO out
up inc overland rates so up went the rates. and
win II the STOCK IL was evident that the Union
Pacinc Railroad could pay dividends as long as
It's directors were abe To charge whatever they
PLEASED
10 "lo" them TO TX their own charges In this
way IL was necessary that the charges by the
racine Mali route should he equally exorbitant,