Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-11-24
EFFECT OF RECENT STOCK DEALS.
A Railroad Combination That Takes in
0ne-Fifth of the Railway Mile
age of the Country.
THE VAST EXTENT OF THE PROJECT.
Pittsburg Will Secure Another New Outlet to the
Lakes By It

has ever seen. This aggregation has secured
control of fully one-ffth OF all the railway
mileage in the United States. A trans
continental system with through trains over
the Baltimore and Ohio and Northern
Pacific was announced some time ago. But
the scheme is far greater than that, as it in
cludes no less than three transcontinental
routes and the operation of over 30, 600 miles
OF railroad, the control of which is in the
hands OF one combination. The system not
only crosses the continent, but traverses the
country from the New England coast to the
Gulf of Mexico, with feeders and auxiliaries
in every important traffic district through
out the country.
The last moves in this great game are
fresh in the public memory, being the pur-
chase of 100000 shares Northern Pacific,
preferred stock, by the Standard Oil party,
and the purchase of like amount of Rich
mond Terminal by the Jay Gould party,
each with the assistance of the others
brokers. The other steps have been taken
at intervals during several years past. In
cidentalIy, it may be recalled to mind that
the same aggreg cation controls tine Western
Union Telegraph and the petroleum in
dusrry. What future moves are intended
may be partly OWNED from the past history
fthe capitalists concerned and an examina-
tion of the arrangements made.
JAY GoULD's PET IDEA.
A transcontinentai railroad has long been
q pet idea of jaw Gould's and in 1SS0-S1 be
had surveys made in this State and Ohio
with a view to the construction of an air
line road to carry the Wabash system into
New York. A portion of the Pittsburg and
Western was TO have been a link in this
road. while its Eastern connection was with
the Philadelphia and Reading. That prof.
ect, however, went beyond the surveys,
and Mr.. Gould, busy with the Southwest
roads and the Pacifcs, seemed to have for
gotten the transcontinental idea altogether,
except in SO far as he was perfecting a trans
continental transatlantic transeverything
telegraph. Here is where the Standard Oil
party came in. 1t had use FOR some tele-
graph stock itself. 1t also had telegraph
Of its own, and arrangements were made for
interchange of business. But the particular
assistance lent by the Standard party in the
completion of the telegraph scheme was in
egraph through the well-rememberej syndi-
cate, the deal which SO upset Robert Gar
rett
The transatlantic railway scheme was
then started in very modest, unobtrusive
way. During the years 1856, the Stand
ard oil party secured control of the New
York and New England system, together
with peculiarly valuable dock property at
Tod o,+ -,
PATCH at that time. In the latter year
Jabez A. Bostwick and mis- lieutenants ap-
peared in the directorate ofthe road, ousting
the old management. Even before this time
John D. Rockefeller was known TO be
heavy buyer of st. Paul, being especially
active in that property during the Grant &
Ward panic of 1884. Rockefeller appeared
in the directorate of st. Paul in 1886, and
it was generally understood his holdings
controlled the road.
THE MOVE ON RICHMOND TERMINAL.
1t was in 1886, too, that the movements of
Richmond Terminal first attracted SO much
attention in Wall street, and it was shown
in the financial columns of THE DISPATCH
at that time that it was Standard Oil capi-
tai that was backing that scheme The Oil
party soon retired behind its co-workers in
that project and the real ownership of Rich
mond Terminal became logged under the
title of the Brice-Thomas syndicate, though
the Standard Oil party was still the syndi-
cate end of the deal. In the furry of the
week Just passed the Gould party picked up
s.S>~nt 100, 900 shares of the Terminal, prac-
tically all that was not already held
by the syndicate, and this party
Will be represented in the directorate
by Jay Gould, George Gould and Russell
Sage. During the past four years the Ter
hoe hpe
everything south of Mason & Dixon's line
and the Ohio river, its latest acquisition be-
ing the Cincinnati, New Orleans and Texas
Pacific. The syndicate voted 81 per cent of
the stock at the annual election, October
1s last, electing Samuel Thomas, Calvin S.
Brice, John II. Inman, NJ. E. Ingalls, and
w. P. Anderson, instead of Frank Bond,
Isaac Martin, Swift, Vessel and Harvey.
Nearly year ago overtures were made to
the city OF Baltimore and the Johns Hop
kins University sfor the purchase of their
Baltimore and Ohio securities on behalf of
syndicate, which it was understood already
held considerable stock. When the nego-
tiations were completed the stock was taken
Av Mr.. Brown, who was identified as Mr..
Brown, OF the Richmond Terminal. The
deal had been handled on the same plan as
that for the Baltimore and Ohio Telegraph,
and the funds were furnished by the Stand
ara Oil party.
Meantime theIRockatellers had been pick
ing up Northern Pacific, and, in connection
with Henry Willard, controlled that prop
erty through the North American Company.
In the whirl following the money market
squeeze and through the troubles of the
North American, the Standard Oil party,
with Mr. Gould's assistance, picked up 100,-
600 shares Northern Pacific preferred,
thereby perfecting their control of the prop
erty. Almost as soon as the Baltimore city
and Johns Hopkins Baltimore and Ohio
stock was transferred to Mr.. Brown, of
Richmond Terminal, arrangements were
announced for operating transcontinental
system, with through trains over the Balti-
more and Ohio and Northern Pacific. using
the Wisconsin Central for terminal facilities
in Chicago and convenient connection, in
dicating prearranged plan.
EXTENT OF THE SCHEME.
But this is not all of the transcontInental
scheme. Mr. Gould's Missouri Pacific is
Mat benefited by this arrangement and
lMge part of the Terminal would be left out.
BENwhen Mr.. Gould picked up the big
block of Terminal stock it was discovered
that the Terminal reaches the Missouri
Pacific at two points on the Mississippi
Memphis, Tenn, and Greenville, Ark.
Singularly enough it is also discovered that
the two systems comprise two perfect trans
continental routes with feeders and auxil-
iaries covering the entire territory south of
the Ohio and Missouri rivers, and connect
ing with the other traGscontinental route
and its network of roads north of those
rivers. All of these lines will enter Balti-
more, Philadelphia, New York and Boston
by the Baltimore and Ohio, and New York