Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1882-12-08
IAY HOu.b,
The Wizard Of the Railfoad and
Stock World, Paints Business
a Rosy Tinted Hue.
small Consolation For Bears.
Special to Courier journal.

NEW 1Ohh, OCOcMDCi ~ M no
sociated Press dispatch from st. Louis
yesterday announced that the general
freight agent of the Missouri Pacific
Railroad Company had given notice Of
an average reduction of twenty. five
per cent in the freight rates on the
Gould Southwestern system, to take
effect to-day, to all points in Texas
and Louisiana from east of st. Louis.
This was the subject of considerable
comment in Wall street yesterday
afternoon, and at the Windsor Hotel
in the evening A Tribun, reporter
inquired of Mr. Gould regarding the
truth of the dispatch.
ut is perfectly ridiculous" Mr..
Gould replied. The dispatch has no
foundation beyond this, that we have
made rates into Texas and Louisiana
over the Southwestern system which
virtually abolishes the bridge tolls 6e
tween East st. Louis and st. Lsuis.
Here is a dispatch | have received
from H. NJ. Hoxie, general traffic man.
ager Of the Southwestern system. |
t~elegraphed~ regarding the dispatch to
Captain Hays, the yice -president, but
he is down in Texas. Mr.. Hoxie sends
me this in reply" The dispatch re-
ceived by Mr.. Gould was as follows:
The general freight agents circular
of December 2 merely announces the
same rates from Fast st. Louis to
points in Texas and Louisiana as are
in force from East st. Louis via Cairo
Short-line 20 the same points, and does
not affect our rates except to the ex-
tent of the st. Louis transfer CHARGES
on such freight as we take from East
St. Louis, which is limited in vol.
ume."
That is all there is to that story"
continued Mr.. Gould. I'VE have re-
Gently opened a line from st Louis to
New Orleans on the west side of the
Mississippi river over the Texas &
Pacific and the Iron Mountain, and
the rates made are simply the same as
by the Illinois Central TO Ntw Or
leans The Illinois Central is III,
shorter line, but the Texa, & Pacific
line has low grades all along aud uther
advantages. They have very little
business as yet TO New Orleans; in
fact, you can say the line has just
opened. There is no cutting Of rates
nor any prospect Of trouble between
us. The relations with the Illinois
Central are Of the most cordial kind
Our line crosses each other at many
places, and, almost points, we pool the
traffic.
There is no necessity for cutting
rates when we have more business
really than our facilities can provide
for. We are compelled constantly to
add to the equipment of the South
western system. The Missouri Pa
cifc has had to 20 oTer to East St.
Louis and build large depot facilities.
Here are the earnings of the
Southwestern system for the fourth
week in November. They amount to
5 ,053,97, and the increase over the
same time last year S2s7, 1884, Why
should we cut rates when this Us the
way earnings increased The bridge tolls
at st. Louis cut the figure in the
through rates to the Southwest The
Union Pacific, you know, has been
compelled virtually to remove the
tolls from Council Bluffs to Omaha.
1t had to be done to satisfy local
traffic.
II never knew the railroads to be in
a better condition, or have a better
understanding before. There is no
trouble except in that small section
10 the Northwest where the roads are
fighting The war there has been
localized The roads in the Oman.
pool have agreed not to let the war
effect the ON Ina rates"
But are not the rates Affected By
the rates to intermediate points, the
cut rates and the local rates for the
remainder of the distance being below
the through ratesl"
oh, no. replied Mr.. Gould,
cheerfully. You see, the rates there
are low anyhow Their passeng rs,
as a rule, have their tickets through
beyond Omaha before they reach Chi
cago. | never felt more confident
regarding railroad securities than
teel now. The roads are beginning TO
see that they are no better of at the
end ola misunderstanding than theV
we're before. What the public wants
is stable rates and the roads are be.
ginning to see this. Their earnings
are enormous. Since my trip West
am very confident, and am not afraid
to hold railroad securities"
We're not railroad earning very
large just before the panic of 1873
queried the reporter.
That is true" Mr.. Gould replied,
but the conditions were very different
then. Then there was an immense
amount Of securities being carried on
loans, and the roads had to carry their
construction Securities on loans. IL
got so that a collapse had to come
butsee how people are now CARRYING
away stocks from the street every day
for investment. Take Western Union
for Instance. | know at tho end Of
every week just how much stock is in
the street. At the close of the book
90 September 20, 1881, brokers held
3yl ,O54 shares, and investors 4O8 946
shares. When the books were clo,td
on September 70 last, brokers bale
3OO,2I4 shares, and investors 499 7k3
shares. Up to Saturday the book,
showed 266,855 shares held by brokers
and 6S3, l45 shares held BY investors
You see, from September, 1881. the
holdings Of the brokers' decreased
nearly 10000 shares. All these have
gone into the hands Of investors,
don't think the prospect looks well
Tor the bears"
The Rival Health Boa DIS.
Cor. Cincin ai Connie eial.