The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-06-07
rnn Kivsis ptciirc R1ILRoAD.

THf K1NSiS PtCfTIC RAILROAD
The Knnsn. Pacific aud unIon Pacific In Har-
r,ony-Ihe Pro Rata BiII How day GouId
Lost ConiroI Of the Colorado Central
During the past week arrangements have
been perfected Tor the transfer OF the control OF
the Kansas Pacific Railway and its connections
to parties owning the Union Pacific Railroad.
The Kansas Pacific has been n rival for the
business OF tho castcrn half Of the Union Pa
cifc. and as 1t can exact II pro rate under act OF
Congress. il has for years past been thorn in
the sides Of jay Gould and his associates. Tho
road runs from Kansas City southwestcrly to
Cheyenne. and, connecting nj its eastern ter
minus with the st. Louis. Kansas City and
Northern. il able To- obtain great deal Of bust
ness from and divert n great deal Of traillc to
the Southwest Had the question been pressed
to an issue in Congress the present session Of
its right to exact pro rate with Union Pacific.
with hostile partisan control. tho enforcement
Of the law would have been disastrous to jay
Gould. Not only this, but the Kansas Pacific.
extended Ave hundred miles further westward.
would have reached Ogden and have become a
rival for the entire length " the Union Pacific.
The latter corporation, however. taking adj
vantage Of the poverty and financial cmbar-
easements Of its rival has been run systematic
caly to defeat any attempts at railroad extern
sion. IA well as To prevent legislation i'm Con-
grcss favorable 20 the Kansas Pacific and unfa-
forabe to the Union Pacific.
Tho way in witch Jay Gould finally obtained
control Of the Kansas Pacific and is connec-
tons in the interests Of the Union Pacific is a
singular one
Ia 1879 some time after he had bought the
controlling interest in Union Pacific, and
marked up the price of the stock. he began 10
realize the importance Of having Kansas Pacific
rs a friend. instead Of "A competitor for trans
continental business. II was evident how seri-
ousy he might be injured If the road should be
used against his property by hostile aud veal
thy parties. In order 10 guard against any un-
favorable events. aconfrrence was held between
parties representing both companies. which
finally eliminated in jay Gould. representing
Union Pacific. and Robert J.. Carr. In behalf of
the Kansas Pacific. agreeing upon plan 10y
which their interests should be made mutual
The Union Pacilc held a majority Of the
stock and bonds Of the Colorado Central
Railroad, a corporation necessary 20 the
business requirements OF tie Kansas Pacific
and il was agreed that the two latter companies
should be consolidated. the Union pacinc turn
ing over it, interest in Colorado Central. and In
return receiving $lOOOOUOO ont Of $50 OOOOOO
Of stock. which would represent the property Of
the new corporation. The papers were drawn
up. and. when ready TO be signed. Mr. Gould
discovered that he was unable TO turn over the
Colorado Central. as agreed upon. He being
unable to fulfil his part OF the contract. the
project fell through for the time. In 1876
proxies were sent out 10 control the Colorado
Central election by Mr.. Gould. but they were
decided to be irregular by the tellers. and the
opposition interest headed by Wm. II. Love-
luul took forafbla Of "A
Offices. An appeal 10 tho courts followed.
United States Judge decided in favor Of Union
Pacific. and an order was granted to Gust the
opposition. The Judge started for Denver TO
see his order executed. The train was stopped
on the way. however, and an armed mob took
tho Judge Of into the mountains where he W
kept all night. In the morning he was safely
conducted to Denver The Proceedings to Gust
the parties in control failed.
Matters remained in much the same position
until last winter Tho Kansas Pacific would do
nothing without Colorado Central. but parties
in control worked vigorously TO get Congress 10
compel Union Pacific to pro rate. Several
wealthy firms in Wall street Interested them
selv,s IN this movement. and sold Union pacn,
short " mako up for the money expended in
ioObyilg. OF course. Kansas pac.nc stool, and
bonus would be- benefited by any action of Con
gross compelling Union pa'iN" % pro rate Ar
In rative ra,cs could be- obtained Tor passengers
and freight Mr.. Gould opposed this movement
n Washington by liberal expenditure IN thu
lobby. hut went % work quietly in Wall -trcrt.
ami before the Kansas Pacific people were
aware u his movements had bought majority
of the bonds a. the corporation. These wrrc
selling at ridloulously low prices. in coase-
quonce Of the financial straits 90 which the road
had been reduced. Most Of the bonds were in
dpfuulf md nbIllnr. sold uf any priaN
When the hill 70 compel pro rate was about
to he brought up in Congress. Mr. Gould sud-
denly appeared as it- most jealous advocate
and the people who had been working 10 inlure
him by it, passage discovered that he would o
the party most greatly benefited
As soon "a he appeared IN the ownor Of Kan
saS Pacific he took steps to forcclosc the road
under an amicable arrangement. by which tho
| first and second mortgage and land grants shall
! lac leu good. The other bonds and Tho stO X
! shall RECEIVE stock at the new company az u
| isto be- SO oo0,opo. Stockholders i'm tho old con-
! Germ Will receive one share Of new stock for
| eight shares II old. Tho various classes II
| bonds IN default are 10 receive III" remain Ter
| OF the flOWOOl0 Ot new stock. There * still a
| question whether Mr. Gould can turn over the
| Colorado Central 10 tho Kansas Pacific.
| The formal settlement of this scheme. 10y
| which ~" Kansas lHrilc and It's conn"ctious
| lahoui 2,5uO miles Of road uuss into tho con-
| troll of Union Pacific, will take place at Kansas
City next week.
a Parable. TO the Moloney- Wise Marriage
| To TIRE EDITOR OF THE SUN-Na': 4 sone-
! what similar marriage 60 the MIS- Mooney umon in
Cincinnati occurred n the same ciiy fcw years aso
| Miss ctllah1n sister ofte Roy D. callahan. stcro.
] O. Dol OBJ