Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-07-23
CAUGHT IN A TRAP.

Rhea county.
CAUGHT IN A TRAP.
Jay Gould Said to Hare Gained Control of
the Lake Shore Road. Vanderbilt Out
,citted.
lChicago Tribune.
1t would not be very pleasant thing for
Vanderbilt, if, at the very moment when he
thought he had reached the goal of his am
bition-to control the entire railroad system
between New York and Chicago-he should
find his fondest hopes dashed, and all his
work of the last few years undone and de-
stroyed. And it really does begin to look as
if Vanderbilt had been beaten at his own
game, because he had not tue sagacity and
shrewdness of another railroad magnate who
was as ambitious as himself. That other
magnate, who is now said to be the destroyer
of Vanderbilt's schemes, is n.ne other than
the renowned Jay Gould. During the last
week or two, rumors have been prevalent
that Jay Gould was buying, or had been buy
ing Lake Shore stock, and there was some
danger of his getting control of the prop
erty. Not much notice was taken of these
AulAoloS oS CSCi olllCC NdlSOi oilC SoO SoheAoA
of the Michigan Central, all sorts of
wild rumors had been floating around. But
yesterday Tribune reporter was shown
private letter by prominent railroad man
ager, which he had Just received from
prominent financial house in New York. In
this letter it was positively asserted that Jay
Gould had obtained control of the Lake
Shore & Michigan Southern, and that appli-
not HN,,tI Hh Ia To mi no
within two weeks to have new election for
directors. 1t looks as if there WAS some
thing in this information. or else it could
hardly have been given in such direct
manner. Besides it must have been OBJ
served that the Erie, in which Gould has
still large, if hot controlling, interest,
has done nothing whatever 10 thwart Van
derbill's schemes, though they were calcu-
lated to reduce the Erie to simple local
road without any independent outlet what
ever. Even when Vanderbilt showed his de-
sire to get control of the Atlantic d Great
Western, which had been close connection
of the Erie for many years, the latter inter
posed no objection. 1t looked very
queer indeed, that two men with such active
brains as Jay Gould and Hugh j. Jewett
should allow themselves to be outwitted
without struggle by Vanderbilt. They
evidently knew what they were about. They
had the traps well laid for Vanderbilt, and
were confident he would be caught. That
Gould was after the Lake Shore has been the
prevailing idea in railway circles for many
years. This road is better suited than any
| other to carry out his favorite scheme OF
controlling continuous line from tee At
lantic to the Pacific. The Lake Shore makes
direct connection with the Erie st Buffalo
and owns jointly the same depot in this city
with the Chicago, Rock Island d Pacific. The
latter road is already controlled by Jay
Gould, and forms an excellent connection
with both the Kansas Pacific and Union Pa
cifc railroads, with the former at Atchisor
over the southwestern branch, and the Other
at Omaha over the main line.
| But Gculd's scheme to make the Erie (;
most formidable competitor with the New
York Central does not stop here. He evi
IDENTIFY means to gi7e that road another more
northern outlet to Chicago, via the Crane
Trunk. MIR. Gould still owns that portion
of the Canada Southern from Detroit Il
Fayette. known as the Chicago d Canad
Southern. which requires an extension o
10 miles to Auburn, on the Baltimore
Ohio. This would give the Grand Trunl
the coveted outlet to Chicago, using til
Chicago branch of the Baltimore d Ohi
from Auburn. In this way Vanderbilt woult
be wedged in by the Erie and Lake Shor
roads on the south, and the Erie and Crane
Trunk roads on the north, and his new &C
cession, the Canada Southern and Michigan
Central, would hardly prove as vaiuabl
to nj as he at first anticipated
Gould's diplomacy is certainly observable il
\ fb. foo hot for Cayarol no "a
held the most amicable relations with Van
derbilt. He virtually presented him witt
the Canada Southern, which was of no u.s.
to Gould as connection with the Erie, AM
urged him on to buy the Michigan Contra
in order to make the Canada Southern
valuable piece of property. Gould coul
have had no other object for doing this thai
to divert the attention of Vanderbilt iron
his real scheme, namely, to get possession o
the Lake Shore. Vanderbilt took the bait
He had no idea of Gouid's designs. S
completely was he taken in that be speculate
in Lake Shore stock upon the advice c
Gould, thus enabling the latter to buy up th
stock of his road.
If the report is true that Gould ha
secured the control of the Lake Shore, a
stated above, there will be no prospect o
carrying Vanderbilt's favorite pooling schem
into effect, for he will have competitor VIII
cannot very well enter into such a scheme
nor would the scheme under such circun
stances be profitable to Vanderbilt. The,
is evidently secret understanding betwee
Gould and Garrett and the managers of tn
Grand Trunk. Everything indicates thu
there will be a furious contest for supren
!, acy between Vanderbilt and Scott on on
side, and Gould and Garrett on the other
Squeesing the "Feil0,c schurs.v