Eureka daily sentinel. [volume] (Eureka, Nev.) 1871-1887, 1881-09-18
GOULD AM
Details of n Bargain Between the
Union Pacific and Denver q Rio
HrDuIo

Details of the Bargain Between ths
Union Pacific and Denver q Rio
Grande.
The Chicago Times in a recent issus
publishes ONE points in a reported bar
gain between the Union Pacific and the
Denver & Rio Grande road. 1t is gener.
ally believed that these negotiations have
had something to do with the delay in the
construction of our Eureka & Colorado
River Railroad. Now that all is settled
satisfactorily to the Denver & Rio Grande
Company, the WORK ought to proceed at
once, and doubtless will. The facts in the
alleged compromise are, according to the
Times, as follows:
The Denver a. Rio Grande has always
laid claim to the business southwest Of
Denver, not only in Colorado, but also in
New Mexico, and have always looked upon
the Atchison, Topeka & Santa Fe and
the Denver, South Park d Pacific as in
truders.
A determined contention was waged by
the Denver q Rio Grande with the Atclli-
son, Topeka & Santa Fe for possession of
certain territory. The contention was
finally compromised. Then began a strug-
gle between the Denver & Rio Grande and
the Denver q South Park. A year ago the
Denver a Rio Grande Company and the
owners of the Denver & South Park were
on the point of an amalgamation Of their
properties. The bargain was about closed
when Jay Gould quietly came upon the
scene and paid cash for the Denver 4
South Park, on the basis OF q par price for
the stock. Mr.. Gould Immediately ANAL
gamated the road with the Union Pacific
system.
The Denver q Rio Grande, with the
Union Pacific, then entered into an agree
ment regarding the extension OF the former
which had the ambition of effecting adirect
connection with the railway system termi-
mating at the east side of the Missouri
River, and the Denver 4 Rio Grande agreed
not to extend its line eastward from Den
yer, and the Union Pacific agreed to sus-
pend all the projected. extensions Of the
Denver & South Park system in Southwest
Colorado
In a little while, the Denver 4 Rio
Grande charged the Union Pacific with a
violation Of the agreement. The Union
Pacific returned charge for charge, allega-
ton for allegation, and every where bristled
with a warlike appearance.
L. E. Sickles, formerly in the Union
Pacific interest. was selected to arbitrate
the controversy, and he is presumably the
medium OF the recent negotiations. 1t is
claimed that Sickles advised the Union
Pacific to withdraw from the territory
southwest Of Denver. The Denver & Rio
Grande made a proposition for the pur-
chase of the Denver d South Park on a
stock basis. At the same time the Union
Pacific made an offer to the Palmer party
for their controlling interest il the Denver
d Rio Grande. The Palmer party, it is said,
declined to part with their control, and in
order not to spoil the bargain, the Union
Pacific. it is reported, has agreed to the
transfer of the Denver and South Park
road and extensions, and this leaves the
Denver and Rio Grande in possession of
the territory southwest Of Denver. The
impression conveyed in private kilograms
yesterday is that, as one Of the stipulations
Of the bargain, the Denver and Rio Grande
should in future maintain o close traffic
alliance with the Union Pacific at Denver.
1t is believed that the Union Pacific was
actuated by a two-fold purpose in this
transaction. In the first place 1t desired
to put an end to expensive rivalry In q ter
ritory barely affording support to one sys-
tenn Of railways, and second, it thought by
forming ar alliance with the Denver and
Rio Grande as a condition Of the relin-
quishment Of the Denver and South Park,
it would injure the project for an early ex-
tension of the Chicago, Burlington and
Quincy to Denver.