Daily globe., 1880-08-24
WALL STREET GOSSIP.
An Operator Who Oiatnts TO be Informed
EGptdins the Principle on Witch Mr..
Goutd is Notc WorIstng
IN. Y. World, 10Th. I


EgpIains the Principle on Witch Mr..
GoUid Is Notc Worhtng.
In. Y. World, 10Th.
"The market continues TO keep dull" said
broker largely identified with Mr.. Gould's
interests, "and the want of activity is prob
ably due TO the absence of a short interest.
which was rapidly forming when stocks took
downward turn about ten days ago. Mr.
Gould's position has been sadly misrepre'
sented. He does not go to work, and never
did in his life, to buy or sell the entire list,
as some reckless spectators venture to do,
but confines his operations to those stocks
which.he thoroughly understands and con-
J trols. The impression hes, however, got
abroad that Mr. Gould is on the eve Of put
ting ont a large line of Shorts This is not
true, since he is now bent upon travelling
with the prosperity of the country as far Rs
it effects those special localities which have
not sufficiently appreciated with
the rising tide. Such threat as that of Mr.
Gould being ready to bear the market has
| only been started in the interest Of those
who wish to buy stocks. The very fact Of
| Mr.. Gould putting so much ready cash into
| railroad projects of intrinsic merit In the
| Southwest will Il ecessarily force him to lean
| TO the bali side for some time to como.
| His interest outside of the Southwestern
! combination is very small. and whether or
not he thinks thar the msEipulators Of Lake
Shore, ST. Paul, Northwest and Erie lave
pushed their advantage far enough, be wiii
not interfere with them should those stocks
advance another 20 per cent. SO concentra-
ted are Mr. Goud's plans that when the
prospests of the Southwestern country loomed
up it became a necessity for him TO choose
between devoting his time and money to the
| Wabash or the new projects. He had pre-
yiously reorgsnized Wabash from the ashes
of what was supposed to be bankrupt cor
poration, SO he decided to allow
| Messrs. Sage and Humphreys to
perfect the plans he had in view for
! that road. 1t therefore looks as if all the
speculation and active trading will be done
this fall and early winter In the Southwest
ern stocks, as Was the case when the Wa
bash star was revived. The Missouri Pacific
railroad under IFS reorganization will be an
| important factor, together with the connec
ting roads which have been taken into the
scheme. Although the new company has
been capitalized for $50, 100000, only S12,
374, 800 of stock are to BE- issued and the re-
nainder is to be used III paying for addi-
| tioDRl branches and building other roads.
The present issue of stock will be divided as
follows: Missouri Pacific, So 200; Kan
sas City and Eastern, 1856, GOO; Lexington
and Southern, $1,050,000; St. Louis, Kansas
City and Arizona, 81, 1885, 800; and Kansas
City and Leavenworth, 81, l,S00,000; total,
| $12, 374, 500. The st. Louis and Lexington,
which is included in the consolidation, does
not receive any new stock. These six roads
| hov O ~ ruffb 1ad
debt of $20,000,000, equal to little over
$4,000 per mile. The stock is rep
resented at the rate of
$4,000 per mile. 1t is claimed that this
capitalization is very moderate, as the Mis-
souri, Pacific is earning S6,000,000 annually
and could pay dividend upon $4,000, 900
of stock. The New Orleans and Pacific,
Texas Pacific and Missouri Pacific will be
soon permanently listed on the Stock Ex-
change, the trouble about the clearing of
Texas and Pacific having been pretty we'll
overcome, so that by October l all of them
will be actively dealt in. OF sourse these
rapid strides in the southwest country may
eventually have a serious effect upon the
trunk lines, and the public will be better
! able to judge of the influence if falling off
in earnings results. 1t is therefore unfair
to trace any rumor about checking an up
ward movement in legitimate properties to
Mr.. Gould, He is the only man who is per-
haps strong enough to do it, but the present
'bulP campaign has been so quitely
managed that there is no inducement to do
SO. The only reason that he organized de-
cline last spring was because speculation
was rampant and traders were jumping
at everything, irrespective of its value,
and carrying stocks up 3 and per
cent. day. If the movement had not
been stopped it would have resulted in pan
lc. Now matters are going On slowly, and,
although, to be sure, Iron Mountain aud Kan
] sas and Texas has only a speculative value
at present, it is not improbable, if certain
stumbling blocks can be got rid of, that these
roads will be taken in at certain valuation
, into the Southwestern scheme"
Another broker, who believes that the sit
uation depends upon the capacity of the rail
roads to keep up their present earnings, said:
"The returns are very irregular from all over
the country, and in some cases the result of
the second week of August shows decrease,
while in others there is slight gain over the
preceding week in the same month. Lake
| Shore showed for the first week an increase
Of $4,000 over 1879, but the second week is
reported to show over 100000. Erie is the
bad egg of all the railroad properties, and
, expect that August will be the last month
which will show an increase, and that will be
less than $4,000 over 1879. In September
there will be large falling off, which will
, check speculation, and the stock may be
, quoted thereon to 10 points lower without
, interfering with the other market"
Another broker said: "The Grangers were
, not SO well sustained to-day because the re-
csipts at Milwaukee continue small, and the
annual report of the Northwest showing an
increase In construction and equipment was
not we'll received. 1t was rumored also that
the Wabash intends building into the North
J, west territory. A meeting Of the head
officials was reported to have been called to
ratlty the proposition to extend another
branch from the Iowa Central division 500
to 700 miles through Minnesota and to GROSS
the st. Paul and to encroach upon the st.
Paul and Omaha territory. This line can
be constructed for about $4,000 per mile,
and it is expected that corps OF workmen
Will be set to work within a short time, the
surveys having already been completed. So
quickly does the Wabash execute any plan
that large orders have been given to eastern
works for number of locomotives and sew
eral Thousand freight cars, which it is under
stood are intended for the new roads about
to be built.