The Osceola times., 1880-12-11
Scheming by Railroad Kings.

Scheming DN hhiirohu hinss.
Chicago Times
In railway circles the chief topic OF
conversation was the revelations in the
Times relative to the gigantic combina-
tions whi,h Vanderbilt and Gould are
erecting. Ii was generally admitted that
the Times leads all the newspapers in the
land in presenting the inside facts of all
the great schemes in railroading. 1t will
verify its presenting this morning an ad-
dtional revelation.
Mr.. Vanderbilt having, as is believed,
been successful in blocking Gould's pro-
ject for the consolidation of the Pacific
railroads by seizing control of the Cen
tral Pacific, is now scheming TO shut the
Gould system out of New York by secur-
ing control of the Erie railway The
foreign bond and stockholders of the
Erie are anxious TO see the road pay a
dividend ON the common stock. They
have openly and repeatedly declared
that as between Vanderbilt and Gould
they would pIefer the former as owner
of the road. The New York Central is
now earning about IL per cent. on a
capital Of S90,O00OO0 Under the laws of
the Empire state the company is pro-
hibited from paying more than s per
cent. dividend The surplus of earnings
is, therefore, equal to $ per cent. on the
total capital, and this enormous sum is to
be applied "where it will do most good"
The Times is in possession of informa-
ton which, while it cannot be said to be
official, is nevertheless trustworthy, that
the control of the Erie is to be trans
&rred to Vanderbilt One report is that
this control IL 10 be secured through bona
iide purchase, and that the investment
will amount to about S5,OO0,000. Another
rumor is TO the effect that, in consldera-
ton of Mr.. Vanderbilt guaranteeing TO
divert from the Central to the Erie an
amount of traiic equal TO s per cent. on
S90,000,0O0 of stock, the foreign board
and stockholders agree to place the con-
troll of the property in his hands, to be
employed subject to certain specified
conditions.
Thus would Vanderbilt be able to
"hold the fort" against his most formid
able rival and adversary. Gould's Wa
bash and Southwestern system would be
defendent upon Vanderbilt for its most
direct connection with New York and
New England. Under such a condition
of things the completion of Gould's
through route from ocean to ocean would
be dependent in one direction, upon the
extension Of the Delaware, l.ackawanna
and Western to Buffalo and Toledo, and,
in the other direction, upon the acquire
ment of the Central Pacific or the con-
struction of branch line of the Missouri,
Kansas and Texas 10 tho Pacific ocean,
The extension of the Delaware, l.acka-
wanna and Western, while regarded as
quite possible is not looked upon by
practical railroad men as II good invest
ment or a road TO be feared by the Cen
tral and Erie, since it could not, even
with the expenditure of vast sum of
money, be brought to standard of eX-
cellence equaling the older lines short of
twenty-five years, say nothing of the dis
advantages of the route as Il source of
local traffic earnings,
While these mighty transactions are
being consummated there evidences that
Vanderbilt is increasing his holding of
stock in the great lines running west
ward from Chicago. A year ago he
bought S5,000,0O0 worth of Northwestern
stock, and was given representation in
the board of directors. At the same
time he had laid by 100000 worth of
Rock Island stock. 1t is almost certain
that he had been buying heavily
but quietly of Northwestern within the
past month, and that at the next annual
election of the company he will double
his representation in the board. To what
extent he may have invested in Burling-
ton no one seems to know. As for the
Rock Island, the relation between it and
the Lake Shore, one of the Vanderbilt
lines, is so friendly and harmonious, and
their terminal interests are so closely in
terwoyen. that he does not need to invest
largely in It in order to protect the inter-
ests Of his Eastern system. If he has
bought any considerable amount of the
stock of the Chicago and Alton or is
holder of any of the stock of that road
the fact has not transpired.
While Vanderbilt is surrounding his
system with all these precautionary and
protective measures, nobody seems to
know what steps are to be taken by
Gould II is safe to circulate that he is
preparing some magnificent stratagems.
Just where his lightning will strike can
not be conjectured. 1t will probably be
a sumner when it does strike. If no.
body but Vanderbilt and Gould are hit
by the bolts the country will not fall into
deep lamentations.
-------
III