The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-12-14
THE TEXAS PACIFIC.
jay Gould Reaching Ont for Its Control
Col. Scott Denies TINT Any
Change is Probable.
ICinelnnati Enunirei..l

rnlbAnFLrutA Penn. Dee 2 From tho
action nt a private meeting, sippemonting
the annual meetug OF the atocliholdcrs of the
Texas and Pacific tiaitroad In thia city to
day. and Irnm tho assertions of leading OIL
cas oi the company. Ii seems certain that
Jay Gould and hta Ting are reaching out For
that railroad and will soon control II. For
four vears the reputei stockholders OF tho
Texas Pacific have had no voice In ita man
agement Tho sn-rallod etotl shaFoe which
have been kicked around In the market for
three years are merely certificates that 80
and-so subscribed so many shares.
nv a majority ballot all the voting power
wac vcated IN three t,tlateea Vice Frepidept
Frank s. Nond, W, t. Walters and Alfred
Gather. This was To prevent hostile inter
oats from getting control Of tho road ~ ita
early daya. Tho money for construction was
received ny syndicate Ut the directors, in
corporatea IA the California and Texas Rail-
road Construction Company. such af the cS-
tsting limo that has not been acquired ny alb
RorhinR local roads was built by tho Con
atructinn Company. Interpretations r'Aulting
In an oppressive debt. which could net bn
located Without aHeh control A. that of tho
trustees. witch haa carried t(sg, line to Fort
Worth, reSaa.
The Immense floating debt contracted by
the construction, having been either llui-
dated or provided far, tho stockholders con
euded that they might again assert their
right TO eentfol their property. Such was
the question discussed ut to-days private
meeting. Tho onlY difference of opinion on
the subject grew ont af tho fear Rhuwu by
some that tho road would he captured hy Jay
Gould and hia ring, Although only three OF
the five years tor which the trtlst was created
had elapsed, yet-the executive officers,
including President Scott. being willing
n vote waa taken on the question
of disselving 1t. one stakeholder says that
two-thtrds OF the shares were voted for tho
dissolution. Another aaya that the vote was
unanimous. October |. 1850, WAS fixed for the
expiration CT the trust Valid certificates Will
then be issued share for share, instead OF
those concentrated III the trust. The meet
ting approved u mortgage Of $25 900 mile on
the ktu Grande division from Fort Worth to
III Paso. about h01 miles, The proceeds OF
these hanas are to farniah tile construction
expenses
After The meeting Your correspondent utter
viewed some 81 tho higher officers upon the
subject President lhomna A. Scott said that
entire harmony prevailed among the stock
holders. and nn disposition WAS manifested ~
oppose An interfere With tho present manage
mont. Wee President krumhhaar aaid that
III contract had heen concluded with any per
SONS Tor The construction Of the road M pro-
lNcted. The construction. ho Thought would
tie Cnntided to outside capitalists rather than
any syndicate 81 capital within the company.
No congressional aid would be sought, the
grant OF u, 000o 600 acres being sufficient. Will
lam l.. Walters. of Baltimore. one Of the
syndicate trustees, said as n result OF to-day's
action the road would he controlled by Gould
and his syndicate within two and half wears
Nv Gosd, Russell Sage and some other New
York capitalists are bidders for the construc-
ton contract nj S2a,HeN n mile. They agree to
take stock and bonds IN equal amount in pay
mrnt. This will give them $4,000. 900 of tho
stock ot the company, and IN case they com
HletG their contract within two and n half
wears they will have n stock vote control
There Is no doubt that the contract will he
duly executed within few days. It is the
most advantageous one that has been offered
and the syndicate, whose money backs It,
renders the completion OF the work morally
certain.
Being asked why the Directors Construc-
ton Company did moi proceed with the build
ing Of the road. Mr., Walters replied "Sueh
inside corporations are useful where the
monry-earning capabilities Of railroad enter
prtsts have not been demonstrated As far
as the Texas and Pacific has been built ii has
been ahie y earn money beyond expenses. 1t
has provided for = large construction floating
debt aud stands III position To enter the
market and procure it. completion BY con
tractors bidding openly"
MI Walters had nnt heard any talk among
the directors III rendering tie presidency Ol
tho company IL Cen. Grant The Idea. H.
said. WAS conceived iii folly No one inter
Hsted IN the road ever entertained thought
III such thing. Grant he remarked might
he good soldier, OF even statesman bat he
had never shown himself particularly quail
HHAl " VIA u Alt3t railroad. Desired IegtSia-
tten could be no object Iii having Grant at the
helm, for the company had all the legislation
L wa tied.
During the recent break in the New York
stock market, the lambs, as all greedy I'M
sophisticated outsiders are now dubbed in
Wall street, lost, It Is estimated, from $1,000
200 TO S6ooa0ea by their redundant credulity. |
This may be eonsidereda small amount, when |
t i remembered that the losers We're to be |
found in al parts OF the country, but ia many |
3aSes, no doubt, severe distress and much |
were caused.
At the Yorktown celebration a "blarsted |
after surveying the situation |
md surroundings, said: Il can well under |
stand now why Lord CORVALLIS surrendered
Yorktown. II / owned such place would /
give il up myself Baltimore Sun.