Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-08-11
AN IMPORTANT LINK
In the Chain of Railroads Uniting
PIttsburg and Chicago
TO BEsOLD ATAUCTIoN TOMORROW
Local Capitalists Said to be After the Chi
cago and Atlantic
TO ADD 1T TO THE P. & W. LINZ
ESPECIAL TELEGRAM TO THE pIspATcH.1

ESPECIAL TELEGRAM TO THE DIsPATcH.1
CHICAGO, August 10.-If the Pittsburg-
ers who are understood to be after the Chi
cago and Atlantic Railroad at the receivers
sale on Tuesday succeed in getting it, the
Pittsburg and Western may suddenly bios
som out as through line from PIttsburg to
this city and wage the liveliest kind of
war with the Pittsburg and Lake Erie and
the Pennsylvania Company's lines for the
vast freight traffic which originates at Pitts
burg and is destined for Western points.
But little can be ascertained as to who
constitutes the "Pittsburg syndicate, as it
is called, but Andrew Carnegie is said to
be at the head of it, and with him are said
to be associated men who are not greatly
his inferior in point Of wealth and enter
prise. The character and history OF the
Chicago and Atlantic are well known in
the West, but perhaps not in Pittsburg and
vicinity, because the road has compare
lively little to do with that point.
The Chicago and Atlantic extends from
Marion, o., about 70 miles south and a
little east of Toledo, to Hammond, Ind,
which is Just 20 miles distant from the
business center of Chicago. 1t is 1855 miles
long, and, at Hammond, it connects with
the Chicago and Western Indiana Railroad,
over whose track its cars reach this city, at
a cost to the Chicago and Atlantic, on rent
paid to the Chicago and Eastern Illinois, of
$14, 216 81 per month.
MADE UP OF SMALL ROADS.
The Chicago and Atlantic has always
been regarded as a ne'er-do-well in railroad
circles. 1t had its origin in an amalgama-
tion about 10 years ago of a number of
small railroads with high-sounding names,
but not much else-the Chicago, Continental
and Baltimore, the Chicago and Atlantic
Extension, the Baltimore, Pittsburg and
Continental were some of them. Its track
laying was not completed until 1882, and
since that time its existence has been pro-
longed groaning and gasping for breath. 1t
was built originally to enable the New
York, Lake Erie and Western to gain an
entry into Chicago, and to the Erie it has
always turned for relief. In 1883 the "Erie"
advanced money to keep it going, and in
return took part of an issue 81, 900, 900 of 40
year gold bonds, but in the following year the
Chicago and Atlantic made default in the
interest payment, and IN 1886 foreclosure |
proceedings were begun.
Since that time various schemes have |
been suggested to lift it out of the rut, but |
none has been more than temporarily sue
cessful, and on Tuesday, August II. at In |
dianapolis, it is to be Knocked down to the |
highest bidder. Notwithstanding its bad |
financial record in the past there is no lack of |
people who would like to get it, and the indi-
cations are that many of the bids Will exceed |
its actual value, The bond holders have |
appointed purchasing committee, and au-
thor lied it to bid S13. 900, 900, but not a cent
more for the property-at least such is the |
talk. They propose to buy it and lease it
for long term of years to the New York, |
Lake Erie and Western.
WOULD LIKE TO PURCHASE
The Norfolk and Western, operating a
line 408 miles long from Norfolk, Va, to
Bristol, Tenn, would like to get it, and by
means of the Scioto Valley road, in which
it has an interest, and short piece of new
road to be built, establish through line
rom Chicago to the seaboard through the
New South, and open up a Western market
or Virginia coke. Then there is said to be
4 syndicate, headed by Calvin S. Brice,
which would like to obtain possession of the
.oad for the purpose of compelling some
,ther road to buy them out. And last, but not
east, the Delaware, Lackawanna and West
I'm Railroad is in the field. This great and
corporation owns line of rail-
'oad running from New York to Buffalo,
md there connecting with Chicago by line
,f boats, but the boats cannot run in winter,
Ind the traffic arrangements which the
people have been able to make
With Chicago lines have not always been
satisfactory. IT it should purchase the Chi
ago and Atlantic it could cover the dis
ance between Buffalo and Marion, O., the
EASTERN terminus OF that line, by building
100 miles of new road, and then it would
lave through line of its own, and a vastly
,reater field of operations. The Delaware and
people could easily put in the
equisite money, but if they should buy the
Dad and take it away from the bondholders
Who propose to operate it in the interest of
he New York, Lake Erie and Western, 1t
s believed they would at once have a fight
N their hands with the Erie which could
lot but result injuriously to Eastern rail-
Dad interests so that after all the Pitts
urgers stand about as good show OF get
ing the road as anybody, their only serious
ompetitor being the bondholders' COM
littee.