Daily Los Angeles herald., 1880-12-02
A GIGANTIC RAILWAY SCHEME.
Is Mr.. Vanderbilt Ambitious to Control Line
to the Pacific Coast 2
Mckee VS. Pslletier.
People vs. BaldOnado.

The assertion in dispatch from
Boston published yesterday, to the
| effect that William III Vanderbilt
had formed an allancewith the man.
ayers ofcertain Western and South.
western railroads for q through
transcontinental line, was a
matter of rumor in this city about
the middle of last week. The roads
mentioned as links in the chain
that it il said is to welded from the
Atlantic to the Pacific. coast, are
the New York Central and Hudson
River, the Lake Shore and Michi-
gan Southern, the Chicago, Bur-
lington and Quincy, and the Atch-
ison, Topeka aud santa Fe. Assoc
ciates of Mr.. Vanderbilts in his
roads have denied that such an al
lance has been made.
The rumor msy have arisen from
two sources. 1t may be started to
manipulate stocks. During the
past week there has been remark
able movement in New York Cen.
trail. Soon after Mr.. Vanderbilt
sold $50, 900 shares of the stock to q
syndicate headed by Jay Gould 1t
rela pssd to quiet place in the
Stock Exchange, continuing SO for
many months. During the last
four days of last week the transact
tions in 1t averaged over $4,000 a
day, and the price advanced 10 per
cent.
The reports circulated about the
Exchange to account for the move
ment were the consolidation pro-
jeet, and that the capital stock,
now $9O,000,00 was to be doubled
and Ave per cent. dividend paid
on the entire issue. Granting that
both reports have no foundation In
fact, reason for their existence
may be that some large holder
wishes to dispose of his holding.
1t is generally believed in Wall
street that Mr.. Gould took 100, 900
shares of the Central stock which
the syndicate bought from Wander
bilt. At no timo since the syndi-
Gates formation could he have
marketed it at better advantage
than during the past week. Prob
ably no one believes more thor
oughly than Mr.. Gould that last
weeks wild speculation is sure to
come to sudden close.
The report relating toa transcon.
tinental line In the Vanderbilt in
terest seems to merit an enumera-
ton of its possibilities. Mr.. Van
derbilt has SO far been content SIM
ply to hold and improve what his
father left to him.. In comparison
with Gould,s stupendous schemes
of railroad extension and consoli.
dation and telegraph building, his
work has been trifiing. He 10 now
back from Europe after q long
rest. He has nearly $50, 200, 600 in
lily be converted into cash for use
in any enterprise. He finds three
Pacific roads working their way
across the continent-the Texas
and Pacific, the Atlantic and PacI-
flo and the Northern Pacific. He
is interested in none OF them.
Gould, besides controlling q COM
pleted road from the lakes to the
Pacific Coast, is interested In one
of the three new ones, the Texas
and Pacific. He IL now looking
for a connection for his roads
through the southwest into Mexico.
The fact seems to be patent that
It H. for the interest of any trunk
road running as far west as Chi
cngo or the Mississippi to make q
connection with one of the great
roads that will sOOn span the CEN
tinent. Should Mr.. Vanderbilt
take this view OF the matter, there
are only two choices for him--the
Northern Pacific and the Atlantic
and Pacific-Gould having the
third. So far az the first Is con-
cerned, he can reach 1t by the Chi
cago and Northwestern road, In
which he is interested. The latter,
however, has many advantages.
By means of the ST. Louis and san
Francisco and the Atchison, To-
peka and Santa Fe, which are
bliIding it jointly, the traffic Of
numerous local feeders can be Sc
cured. The latter of the roads is
also looking for Mexican connec-
ton. The Atlantic and Pacific
would also bring Vanderbilt moro
directly into competition with
Gould, II nothing more Is on foot,
II may be, as one Of Mr.. Wander
bilt's associates suggested. that q
CLOSE traffic alliance or arrange.
ment may be made between the
New York Central and Lake Shore
and the Chicago, 1sflinkton and