The morning call., 1890-10-05
WESTERN RAILROADS.
Significance Of the Purchase Of the Colo
radO Midland by the AtChis0n.

CHICAGO, Oct. 4.-The Tribune says:
The purchase OF the Colorado Midland by
the Atchiseu, Topeka and Santa Fe appears
to have greater siguificanre than has been
the general impression. 1t becomes more
z-o5..t: . 7ery day nat it was not the object
Of tue Santa Fe,- or rather the bankers who
control that road, to crowd out the Rock
Island: or any other road which now termi-
Mates at the eastern slope of the Rocky
Mountains. The impression Is gaining
strength that the deal was consummated
with the.vieW of bringing about the forma-
.tion of a gigantic railway trust or combina-
ton of all roads between Chicago and
the Pacific Coast. 1he raiirold situation
in the West is in more demoraliZed condi-
uon than. ever before, and unless a pool or
combine is specially formed that viii insure
the maintenance of high rates. many roads
will be pushed 10 the wall TO save them
selves from serious losses, ana bankers
who invested heavily In Western roads
shortly aftef. the formation OF the &c ntle-
man 5" Ass0 -iatio n will be prlled to in
= vest still more h eavily. With this end IN
view the st, LOUIS and San Francisco and
Colorado Midland have lately been acquired
blythe Santa Fe. The principal obstacle in
the way Of the consumnatiUn ofthe bank
eTs' schemei is the L GniOn Pacific and North
western combination. Against the latter The
other Yves .eTn roads are sufficiently subju-
gated to enter INTO any arrangement the
bankers may propose, Jay Gould appears
to be in full ar oid with them, but the North
WESTERN Union Pacific combination stands
/ out. Tie backing OF the Vanderbilts gives
the latter combination such stGebgth 1t can
. not be dislrdged without serious conflict.
The Union Pacific, since It's alliance with
the Northwestern, OF rather the Vanderbilt
combine, has. been encroaching upon the
territory OF the Santa Ee and Gould lines in
all directions. 1t has Obtained outlets into
Texas Both from Denver and Omaha, and is
now extending the Utah Southern from
Frisco, Utah, to Mojave at the connection OF
the Santa Fe with the Southern Pacific
Tapping the latter at Ogden and Mojave,
the Union Pacific and Northw esterD COM
binaiiUn would stand invlncible and be able
to contrOl nearly all California traffic by en-
comprising an alliance. with the Southern
Pacific. To spoil such a game SremS 10 Lave
been The object OF the Santa Fe people when
they secured control of the Colorado Mid
land. If they secure the Denver and Rio
Grande WesI also, they will have line
through tU SaitLake Ciiy and Ogden, where
they can retala(e against the Union Pacific
ana N northwestern com bi4ation il the latter
attempts to show fight al MOjayc when they
get there, or Try 10 engineer an exclusive
arrangement with the Southern Pacific.
The issue is nothing more nor less than a
test of strength between the bankers, aided
by Jay Gould and nearly all the other West
eth roads. against the Union Pacific and
Vanderbilt onIbination, and whichever side
comes out ahead viii be master OF the Situ-
alton. Uhal this issue is decided improve
ment IN Western railroad atfdirs is not to be
looked for
"NothnI but assumption, and the most
absurd assumption at that" Is what PreSi-
dent Maxwell OF the Santa Fe said to-day
when questioned. Maxwell would not say,
in SO many words, that the Colorado Midland
had been taken into the Santa Fe family, but
''if il has," he observed, ~ can assure you
the transaction was not backed by any cUiE-
binatiOn to artasOnize the Northwestern
Union Pacific or other alliances The pub
lished runioIs of the three headed article in
the Tribune, stating that the Santa Fe, Mis-
souri, Pacific and Southern Pacific were com
blning To control the transcontinental buSi-
ness, are entirely without fouBdatiOn. The
Santa Fe has already transcontinental line,
and is well enough satisfied with 1t not 10
be trying to secure another. l have nothing
to say regarding all III Sc flying reports, eX-
cept they are, as said LefUre, mere assump-
tons Oh the part OF some one whose llndg-
nation reaches beyond the limits OF legltl-
mate business Propositions"
Another official OF tie Santa Fe declared
that no effort had been made 10 get control
OF tile Rio Grande Western, but 1t would be
perfectly natural, he thought, for that con-
cern to want 10 make u satisfactory agree
ment for the interchange of business with
It's strongest connection.