Daily globe., 1880-08-24
WALL STREET GOSSIP.
an Operator Who Claims TO be Informed
TnpIains The Principle on Witch Mr..
Gould Is NotC WOrkin0.

Unplains the Principle on Which Mr.
Gould is Noto Working.
In Y. World, 19th.l
"The market continues to keep dull" said
O broker largely identified with Mr.. Gonld's
interests, "aEd the want of activity is PROB
ably due to the absence of short interest
which was rapidly forming when stocks look
q downward turn about ten days ago. Mr.
Goulds 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,
bat confines his operations to those stocks
which he thoroughly understands and oon-
trolls. The impression has, however, GO.
abroad that Mr. Gould is on the eve of put
ting out large line Of Shorts This is not
true, since be is now bent upon travelling
with the prosperity of the country as far as
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.. Gonld putting so much ready cash into
railroad projects of intrinsic merit IN the
Southwest will necessarily force him 10 lean
to the 'bulP side for some time to cnuc.
His interest outside of the Southwestern
combination is very small. and whether or
not be thinks that the manipulators of LAKE
Shore, st. Paul, Northwest and Erie have
pushed their advantage far enough, ne vii
not interfere with them should those stocks
advance another 90 per cent. So concentra'
ted ere Mr. Gould's plans thet when the
prospects, of the Souihw, stem country loomed
up it became hece sslty for him TO choose
between devoting his time and monsy TO tia
Wabash or the new projects. He had pre-
viously reorganized Wabash from the ashss
of what was supposed to be bankrupt COZ
poratioD, 80 ne 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 he done
this fall and early winter IN the Southwest
ern stocks, as was the case woen the Wa
bash star was revived. The Missouri Pacific
railroad under its reorganization will be an
| important factor, together with the conneo.
| ting roads which have been iaken into tbe
scheme. Although the new company bas
| been capitalized for S30, ,O0O,0 900, only S12,-
| 374, 500 of stock are to bs issued and the Ie-
mainder is to be used III paying for addi-
tional branches and ding other roads
| The present issue of stock will be divided as
| follows: Missouri Pacific So 100000; Kan
sas City and Eastern, Sa66, COG; Lexington
and Southern, ST ,050, 600; st. Louis, Kansas
| City and Arizona, S1,158,500; and Kansas
| City and Leavenworth, 81, 100000; total,
Sl2, ,374 500. The st. Louis and Lexington,
which is included in the consolidation, does
not receive any new stock. These six roads
have mileage of $50 miles, with bonded
| debt of 20,O0O,000, equal TO little ever
| $4,000 per mile. The stock Is rep
resented at the rate OF
$4,000 per mile. It is claimed that this
capitalization is very moderate, as the Mis-
souri, Pacific is earning S6,000,000 annually
and could pay dividend upon SS20, 900, 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 well
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 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
ward movement in legitimate properties to
MIR. 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 indacement 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 and 4 per
cent. day. If the movement had not
been stopped it would have resulted in pan
ia. Now matters are going on slowly, and,
although, to be sure, Iron Mountain and 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 a slight gain over the
preceding week in the same month. Lske
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
expect that August will bs the last month
which will show an increase, and that will be
less than $4,000 over 1879 Ia September
there will be g large falling off, which will
check speculation, and the stock may be
quoted thereon 5 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-
ceipts 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 runored also that
the Wabash intends building into the North
west territory. A meeting Of the head
officials was reported to have been called to
ratity the proposition to extend another
branch from the Iowa Central division 500
to 700 miles through Minnesota and to cross
the ST. Paul and 10 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.