The Benton weekly record. [volume] (Benton, Mont.) 1880-1885, 1883-09-01
THE RAILROADS.
Vanderbilt Pushing Jay Gould to the
Wall I'm Order to Get Hold of the
Wabash-The Relation of the
Canadian Pacific to the
southeastern.

CHICAGO, Aug. 13.-Gen. j. IT. Deve-
reaux, president of the Cleveland, Column
bus, Cincinnati & Indianapolis and Indian
apolis & st. Louis railroads, James Tillin-
ghast, assistant to w. III. Vanderbilt and
yice-president of the Pullman Sleeping Car
Company, Judge A. F. Ranney, general
counsel Of the Lake Shore Il Nickel Plate,
and other Vanderbilt officials have arrived
here from a trip to St. Louis, Kansas City
and Omaha. 1t has been generally under
stood that the object of the trip was to look
into the practicability of building an indie
pendent outlet for the Vanderbilt system
from st. Louis to Kansas City and Omaha.
They mean business, but this does not by
any means establish the fact that an exten-
sion is to be built. Likely Vanderbilt
means by the speedy rumor that he con
templates building new line to scare
owners of existing roads between those
points sufficiently to get them to dispose
of their property at reasonable figures.
Remarks incidentally dropped by some of
the gentlemen seem to indicate that Van
derbilt is really after the Wabash, and a
heavy decline in shares of this road shows
that somebody hammered them down for
some purpose. Wabash is of no value to
Gould's southern system and seems to be
4 heavy load. Gould would no doubt be
glad to dispose of the Wabash to Wander
bilt provided he could get a reasonable
price. But
VANDERBILT WANTS THE PROPERTY
cheaper than Gould wants to sell it, and is
using efforts to compel Gould to sell Or
force the road into bankruptcy, in which
event Vanderbilt will step in and buy at
foreclosure sale. 1t would be Of great ad-
vantage to Vanderbilt. In the first place
it would give the Nickle Plate an outlet to
St. Louis as at first contemplated; it would
also give the indianapolis & st. Louis the
Bee Line. also controlled by Vanderbilt,
the desired outlet from st. Louis to Kan
sas City and Omaha. The Quincy line of
the Wabash would prove desirable prop
erty. The strenuous efforts Vanderbilt is
making to secure an independent outlet to
Kansas City and Omaha for all his lines
West, shows conclusiyely that he has also
secured large, if not controlling inter-
est in the Union Pacific. 1t has been
known for some time that Vanderbilt held
a large amount of Union Pacific stock, and
the late decline in stocks enabled him to
secure more. Devereaux and party had a
long conference with Union Pacific officers
at Omaha and the interview, it is sup
posed. had reference to the future man
agement Of the road in connection with the
Vanderbilt lines. Taking it all in all it
looks very much as if Vanderbilt had de-
termined to push Gould to the wall and
himself be sole dictator of the. e..American
railroad system.
THE SOITTHEAS STERN.
BosToN, Aug. ia dispatch from St.
Albans to the Journal says of the ''iron-
clad' contract alleged to exist between
the Canadian Pacific Railway Company
and the president of the Southeastern Rail-
way Company for the sale of the latter to
syndicate, that this contract is substan-
TALLY as follows: The road was to be sold
to the directors Of the Canadian Pacific
Railroad Company at $3.50 900, and in
return Stephens, Mcintyre and Smith
were to secure for Barlow the discounting
of two notes for 100000 and 5000, 900 re-
spectively, the latter being done at the
Bank of Montreal. Both notes bore the
endorsement Of the above named gentle
men. They were further to advance him
| $250,OO0 themselves, which was done.
/ They reserved for themselves the option
to purchase the road ut any time within
Barlow reserved the right to decline t. cir
option on 80 days notice on payment of
his Indebtedness in full, while they held
they could call i'm Barlow's loan on 30
days notice. A year and one month of
time included in the agreement has already
expired. Barlow has since the agreement
expended about $4O0, 900 in improving the
property. 1t was further agreed that the
road should be sold to the Canadian Pa
citic for $5, 900, 900, the difference to be d.
vided under a certain agreement. The
syndicate refused to include the amount OF
Barow's expenditures in the purchase
money, and Barlow has since been trying tC
SELL TO OTHER PARTIES
but couldn't; so, owing to complications
in which he is involved with the above
named parties, who have now forced the
issue, he, by the terms of the agreemen
and as collateral security, pledged the en-
tire stock and issue of bonds of the South
eastern railroad, which they still hold az
collateral security for their previous
stocks and Canadian Pacific people sa,
they would be perfectly satisfied in having
the sale of the road to the Chapman syndi
cate completed. They assert that they d.
not desire to put any more money into 1t
and that they are willing to relinquisl
their claim on pa ment of the amount dn
from Barlow. Notwithstanding the above
there appears to be good reason for believ
ing chat the Canadian Pacific is secretl.
planning to prevent the sale of the road {
the Chapman syndicate, hoping. il is q
: legged, that in the event of failure of TIL
! negotiations in progress to secure th