The Cheyenne daily leader. [volume] (Cheyenne, Wyo.) 1870-1884, 1880-11-19

The aaLIFsAA Mag Bays the DsASsT
aad BSafh PARA.

Aaa Bo9fh TAEA
4 telegram Has received al the once
81 tbs south FaFk railroad Late OF
Tuesday evening. from Governor Nv.
ans, who Is New York, stating thai
the South Park road had bsen sid u
Jay Gould for s7,bOO 600, and that b
had paid that sum Of money into the
First National bank Of New York.
This decides q part Of the question
that has been pending 30 long. The
talk about consultation with the Den.
yer and Rio Grande company is thus
set at rest, at least for the present.
The present transaction isa straightout
South Park line have conducted theiT
deliberations with 70 much secrecy, and
their negotiations with the purchasing
party have been 81 carefully concealed
from the public, that all attempts 70
penetrate the mystery nave been una.
yailing. The general supposition has
been that there would he u consolida-
ton OF the two roads, or that the South
Park road would be absorbed in the Rio
Grande system and conducted under
one management, thus putting an end
To the rivalry between the two lines in
their efforts 10 reach into the Gunnison
country.
The transaction that has now taken
place leaves the question Of rivalry be-
tween the two lines in the same position
as before, one line having merely
changed ownership.
The matter was brought about in
this wise: Jay Gould some time since
endeavored to consolidate the two roads.
Now the law prevents the actual con-
solidation OF the two roads, but IL could
he made practically the same thing as
consolidation by the one road leasing
line 10 the other. When this was first
attempted Jay Gould endeavored to
purchase n controlling interest In the
South Park road. transferring Denver
and Rio Grande stock rs part OF the
purchase money. General Palmer
would not give his consent TO this mr.
rangement, therefore the negotiations
fell through. About n year ago Jay
Gould purchased one-fourth OF the
stock Of the South Park road, and the
Kansas Pacific company holding one-
tenth, this gave Mr.. Gould control of
thirty-nye one hundredths OF the entire
stock. This was a large proportion OF
the whole property, but OF course gave
him no more control OF Its management
than II he had only owned one hun
dredth. To secure themselves and
prevent the railway king from buying
stock from q number Of the smaller
stockholders and SO obtaining enough
TO give him a controlling interest, the
stockholders OF the road met together
and made Mr.. J. 5. Brown a trustee of
all the stock held by the residents of
Denver, thus preventing any individual
stakeholder from ~disposing OF his inter-
est. The principal reason for taking
this action was that there was a very
general feeling that the owners OF the
property could not afford TO do anything
that would transfer the control Of the
road that did not meet the sanction OF
the whole corporation. When n few
weeks ago an offer was made by Jay
Gould through Governor Evans to buy
the stock at its market value, the stock
holders held another meeting and gave
Governor Evans authority TO sell the
stock for cash upon the terms proposed
by Mr.. Gould in his offer. Last week
the governor, armed with n power OF
attorney, left for New York with full
power u dispose of the stock upon the
terms agreed upon. For the original
owners OF the property 1t is a very for
tunate and lucrative transaction. There
WAS a time when the stock was almost
worthless and now thoy will reap q
handsome sum from its sale. Denver
will reap no small share OF advantage
from the t%ransferance Of two million.
and n half OF dollars TO the city, and Il
Is fair to presume that n large portion
Of this amount will ultimately be in
vested in some way that will add Il
the material prosperity of the city.
II COMING sTNUoGLE.
The sale of the South Park stock hav
ing been effected and Jay Gould nov
having complete control of the road
the interesting question now is concern
ing the future relations Of that roa,
with the Denver and Rio Grande. TIN
new owner may determine to fight an,
push on into the Gunnison country, o
he may adopt an amicabls policy. Thu
annual meeting Of the stockholders o
the Denver and Rio Grande company
which takes place at Colorado Springs
IL now looked forward with a grea
deal Of interest, as the result of thu
election Of directors will at once SHOW
the future status Of the two companies
The struggle between Gould and Palm
er will then be decided. The latter. n
is well known, holds his power through
the influence of Mr.. Woerrishoffer, VIII,
controls n majority Of the stock. ia,
| Gould holds one-fourth and IN Mr.