Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1880-01-12
RAILROAD STRATEGY.
RAILROAD TALK AT THE EAsT-FEINTs
AT RAILROAD BUILDING.
An Occasional Correspondent Clears up the
Mist from Much Gossip about Rail-
ways and Financeering.
NEW York, january l, 1880.

Regarding the proposed extension of
railway lines to the Pacific coast in such
numbers, it will be well enough for your
readers not to be over-credulous. There is
a good deal of sharp fnanciering, in the
newspapers, about Pacific railroads, and
railroads that are to be built to the Pacific,
a part of which is the natural imagination
attempting to forecast what is to happen
in the future, and more of it which is
simply maneuvering among the different
corporations for some advantage of posi-
ton. In other words, there are great
many feints at building railroads which
will never be carried out, and are not in
tended to be. l may enumerate the
schemes now occupying the attention of
railroad and financial gossips. In the first
place it is settled that
NO AID CAN BE HAD FROM CONGRESS
For building roads, and it is doubtful, in
the present temper of public opinion,
whether even the old land grants, which
have become profitable by reason of nom
performance of the work as stipulated,
could now be revived by favorable legisla-
ton. The Northern Pacific, having con-
verted its mortgage bonds into stock, has
prepared the way for more borrow ing, and
by way of precaution has issued separate
mortgage on its new road west of the Mis-
souri, River, including in the lien the lands
alongside which it hopes to get. 1t is
hard to say where the money comes from
to build the extension of this road, but as
the first 200 miles is cheap line, it is prob.
ably furnished by a ring of the largest
owners, in the hope of putting the enter
prise into a more hopeful looking shape so
they can sell out. 1t will take at least ten
years to finish the Northern Pacific, and
maybe twenty. Next there is the Texas
Pacific, which occupies somewhat similar
position. The stockholders of this road
have for years been making unavailing eff
forts to raise money to extend it. The
progress of the Southern Pacific. along the
chosen route across California and Arizona,
has settled the fact that this company will
build no road in the Territories or on the
Pacific. 1t would only be too glad to get
as far as the western boundary of Texas at
the Rio Grande. It is true a report has
recently been started in the papers, of
combination of Dillon, Gould, Sage, Pull
company to build the $50 miles to the Rio
with the road coming east from California.
There is suspicious look about it, but it
may be true. 1t is the fashion nowadays
for promoters of new projects to use the
names of Gould, Sage and Pullman for their
purposes, and as these men never take the
pains to deny the reports land may rather
enjoy them, when they have no foundation),
they are frequently used in this connection
for putting up stocks or the reverse.
GOULD AND SAGE
Are Wall street spectators that is their
business, and they understand it thor
oughly-but as builders of railroads they
have never figured very largely. True,
and there to head off or injure rival
concern, and are now building a narrow
gauge toward Oregon in order to anticipate
the Northern Pacific and take its best
trade. In like manner they built the Col
orado Central to bring the Kansas Pacific to
terms, and having secured it, they found
another rival TO it in the Atchison, Topeka
and Santa Fe. This brings me to speak of
the contest, which has latterly become
something of paper contest, toe, between
the management of the Union and Kansas
Pacific and Denver and Rio Grande roads
on the one side and the Atchson, Topeka
and Santa Fe on the other. Both coppa-
MES started their lines for the Leadviile
mines in Southern Colorado, and collided
as to the right of way through one of the
canyons. The struggle, which was decided
legally in favor of the Denver and Rio
Grande, was met by sort of bluffing
counter proposal of the Boston party lthe
Atchison, Topeka and Santa Fe) to push a
road right through to the Pacific, to be re-
venged on their opponents. This was tan
tamount to experimenting line of $50
miles of road over the plains, doing good
local business, by an extension of a thou
sand miles over rough and desert country.
1t was at this juncture that the Boston
men, who are no match for the shrewd
New Workers, fell into trap prepared by
some cunning and rich Jews who have con-
troll of the old Atlantic and Pacific Com
pany. This road has lately been chris
tened the
ST. LOUIS AND SAN FRANCISCO,
And the title would be appropriate enough
if it had thirty-seven miles added to its