Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1883-08-14
caPE MAY GOSSIP.
Railroad Moves in the EOuth.
west and East-COlOneI Cole,
major Tom O'Conner, Colonel
X. +. LOOney, Etc.


Richmond and Danville system, one o
the parties at interest said to me yes.
terday. The Richmond contingent
headed by the Stuarts, has long zinc,
passed out of ownership ofathe Dan,
vile. When speculation carried th,
stock to dizzy heights, they unlosdeC
and retired with enormous profits
They invested largely in the Georgiu
Pacific, one Of the Stuarts being the
largest owner in that enterprise
Treasurer Trigg, General Buford, So
Haas and many other officials stood By
their holdings and lost heavily. Gen.
eral Logan and his friends became
the main executive men, Clyde having
dissented and skulked off with a mi,
nority."
"How came the controlling shares to
be shifted" aai
That involves q curious rumor II
is said when the directors determined
to issue $4,000, 600 of stock, they felt
sure that this action would depress
the stock and they began selling
heavily. Clyde and Scott, who had
opposed the new issue, saw the chance
Of getting a majority of the shares and
as fast as the dominant party offered
stock they took it. They soon had
the controlling interest, and by com.
bining with the Seney syndicate, took
possession of the territory south and
east of the Ohio river and consolidated
under one management about $500
miles of railroad. M t4l %
lasked if the work on the Georgia
Pacific would be continued. My in
tormsnt replied that it would. Each
system will be perfected and left TO
take care Of itself. Contrary to gen.
eral belief" he said, "Thomas and the
Seney people believe in the South as a
field OF investment, and will develop
their property there, instead of selling
them on speculation" | asked if it
were possible that Gould had bought
control Of the East Tennessee, and
impelled this new investment, NO"
he replied, "Mr. Gould believes that
the star Of empire holds it's way to
the southwest, aud he will devote all
his energies to that section and to the
vague glories of the Mexico lying be-
You'd. He has no investment in the
southeast and no temptations in that
direction, The Seney crowd must
develop their property and the section
through which they pass before they
could unload then, even il they wished
to do so.p z
My informant said. There is no
truth in the story that Gould is back
of the East Tennessee system. | don't
believe he ever tried to get hold Of it.
Jay Gould's interests lie in the
southwest, and he has no sort of inter-
est in covering the southeast. He
believes the star Of empire is holding
its way to Texas. He is, therefore,
massing his forces there, with view
of controlling the southwest and final.
ly pushing his lines into the vague
but tempting Mexican fields beyond.
You will never see Jay Gould taking
hold of southeastern systems. His
ambition and faith are lodged else
where"
Per contra, it is known that George
s. Scott, the wealthy broker, who is
the largest purchaser Of the stock, has
of late represented Gould in several
purchases, and 1t is claimed that he
has bought for Gould in this instance,
and will represent Gould in the new
directory. AS to Gould's interest in
the system they are clear and positive.
His great rival, Huntington, draining
Texas into New Orleans by the Nor
gan lines, is now building rapidly from
New Orleans to Vicksburg aud Mem
phis, where his Chesapeake and Ohio
system carries him on to the coast.
Mr. Gould could not better meet this
new through line than by buying the
Richmond and Danville and finishing
the Georgia Pacific to Texarkana.
This would give his Texas and South
western system director and shorter
outlet than Mr.. Huntington can hope
to get.
1t did not require very much money
to make this purchase, as large as it
looks on paper. The stock Of the
Richmond and Danville is only
s., 900, 900, and its price ranges from
4S to 20. AT even this highest figure
it would take less than $1,000 900 to
buy the control. Fahnestock & Ba>
ker, Of the First National Bank, a
somewhat speculative concern of
enormous resources, could either have
put up the whole amount, without
drawing on the other. So could
Seney, or Clyde, or Scott. Indeed, it
is said that the stock has been pur.
chased by men who own the securities
of the road and its relations, in order
to protect their bonds, by changing
the management OF the road.
/ had a talk with rich Nashvillian,
who Is spending a month at this hotel,
Touching the rumors as to Colonel
Coles brain having been affected, be
said: "A more absurd story was never
started. Colonel Coles head is as
clear as it ever was. He is perhaps
the richest man in Tennessee, and has
his business well in hand. He has
just organized a bank with $500. 600
paid up capital and is building a five
story block Of houses. He says he
has retired permanently from railroad
management, but doubt that. An
old cavalry horse always pricks his
ears when he hears cannonading, and
Cole is always interested when there
is excitement in railroad circles. But
whether he stays out or goes in, his
head is very long and level, his health
is fine, and his fOFtune is way up above
q million dollars"
The same gentleman told me that
Tom 0'Conner's estate would not pay
judgments against it, which already
amounts TO more than 100000. Had
0'DonneT lived hyo ysaRs longer he
might have haen n rich man ii n was