St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1888-11-25
jay Gould Listens to Reason
When There's Money
in 1t.
The Bitter Rate War Between
Southwestern Railroads
Is at an End.
Wall Streets Wizard Dictates
the Cast-Iron Terms of
Peace.
Cooley's Commission Takes
Occasion to Set Hard on
a Complainant.

New YORK, Nov. 24.-For more than
year the railroads of the Southwest
have been engaged in bitter rate war.
Prompted to the fight by jealousieS
growing out of encroachments upon one
another's territory, all of the great lines
west of the Missouri river plunged into
cut-thrOat competition that has
stopped at nothing to work mutual
disaster. Freight rates We're cut far be-
low remuneratiye point. Not single
company in all the wide territory of the
Southwest was able to make cent.
Instead of profits there was uniform
scoring of losses. Receiyerships
have stared more than one of the big
gest corporations in the face. Divi-
dendS have been cut down and in some
Instances altogether abolished. Even
mortgage bonds have been distrusted
and have fallen in market value. EX
cept the altogether unprecedented fight
which is bankrupting the railways Of
the Northwest, this war has had no
rival in recent railroad history. Yes
terday this war was practically settled.
Involved in the fight have been the
Missouri Pacific and.all the auxiliary
and connecting lines controlled by Jay
Gould. The AtchiSon, Topeka & Santa
Fe, the st. Louis d San Francisco, the
Rock Island. the Chicago. Burlington
& Quincy, G. P. Huntfngton's South
western trunk lines and branches, and
smaller roads galore. Many efforts have
been made to settle this war, but no
such enterprise ever got beyond its sub
mission to Mr.. Gould.
He WANTED NO SETTLEMENT.
He had by far more to gain by pro-
- h., Il Jx-
else, either in war or in peace. He was
bitterly incensed against the manage
ment of the AtehisOn, Topeka 81 Santa
Fe company. That line descended upon
Missouri Pacific territory in a guerrilla
fashion. and with better roadway. bet
ter equipments and more accommodating
management, took traffic from Mr..
Gould's lines by wholesale. Other
roads were almost as great offenders.
MIR. Gould was credited with declar-
ing, months ago, that he expected to see
a time when the AtchisOn and some
other companies would come to him
begging for money to tide them over
financial emergencies. The prophesy
came true. Almost every company in
the Southwest has had to issue new
bonds, and sell them at rates
which two years ago they would
have sneered at contemporary.
Lately Mr.. Gould has been credited
the AtchiSon road. He has seen it drop
to half the price it was when he served
notice on the Atkinson company that he
was i'll for fight TO the death. Then it
was b0uyant, far up above par. Lately
it has been around 60, dropping. One
Boston brokerage firm is credited with
buying over $4,000 shares of AtchiSon
stock for Mr.. Gould, and this is declared
by people protesting to have inside in
formation to be but trifie in the total
collection of AtchiSon stock now held by
Mr.. Gould. all bought at the big decline.
Having thus put himself in the position
10 see the real value in settlement, Mr..
Gould has not, unnaturally, been un-
willing finally ''to listen to reason"
however much he has been deaf to sim
ilal solicitations year ago. He began
fortnight ago to take an active part
In the
ENDING OF THE WAR.
When he means business, he is swift
enough. Manager Midgely. of the
Southwestern Traffic association, was
summoned to New York, arriving here
two or three days ago. Mr.. Gould had
settlement scheme all ready. Mr..
Midgely was invited to put it into oper-
alton by inviting all the Southwestern
lines to come amiably forward to co
operate. Every line consented to meet
Mr.. Midgely and Mr.. Gould at confer
ence, and yesterday this conference was
held. Mr.. Gould and Mr.. Midgely were
there, as were representative of G. p.
Huntington'S system. and of the Atchi-
son and Burlington 81 Quincy, the st.
Louis d San Francisco and the Rock
Island. And there was such unanimity
that preliminary agreement, which
one magnate present styles a
least iron agreement" was
signed by which it is contracted by the
various lines to restore rates at once, as
soon as it is practicable under the pro-
visions of the Interstate commerce law.
This advance will be equal to an aver
age OF 25 per cent upon all classes of
traffic. Further than this. the Gould
scheme cOntemplates the organization
of an executive committee, represent
ing all the roads, which shall have
power to dismiss from the service of
any road any freight agent found cut
ting rates. Russell Sage said last night
that this preliminary agreement ends
the Southwestern war. A further con-
tract, however, will be drawn and exc
cuted at once, he says, and officially an.
nounced to-day or Monday. The addi-
tional agreement, he says, is not needed
to make the settlement any more con-
elusive or binding, but it is necessary
to provide satisfactorily for manifold
details.
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