New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-09-20
SANTA FE'S BIG DEAL.
HAVING PURCHASED THE MIDLAND, 1T NOW
SECURES THE RIO GRANDE WESTERN.


ANOTHER LINE TO THE PACIFIC COAST
DESIGNS on TIE DENVER
AND RIO c2ANr,.
tDV T8LEoRAPn TO THE fnsrSEJ
Denver, Col, Sept. I0.-Perhaps one OF tne
greatest railroad deals ever known IN the hlsooIy
Of the West Is about to be consummnted by Ine
Atchison Topeka and Santa Fe Company Inc
announcement Of its purchase OF the Noioi"uo
Midland has already been made IN these coiu.nnS'
but from information received here TO-DAY Ho"
London IL would appear that the European own
crs of the Santa Fe and Denver and Rlo "ran"e
stocks are trying TO come " an u"oe.'
standing 40 to the purchase Of the iattcf 10a0'
This new deal is the result Oh 81
oytion which the Santa Fe has upon toe
Rio Grande Western, which Is the outlet OF the
n.nvs, and Rio Grande from Grand Junction.
Col. to Ogden, Utah, the purchase Of which In
wolves $40, ooo, 900. The Santa Fe would not
desire the Midland but fot the fact that they
have secured an option on Rio Graudc western
which will connect with the Midland at GranQ
Junction, thereby giving through line TO Ogoeo'
President Marvel not only wanted to eetapasa
q through line, but in doing so he deslr'" %
sive the Denver and Rio Grande a rap by cutting
IL of from q Western outlet This could not ne
d.ne Iercent by purchasing the Rio Grande west
en.
The deal has not been formally consummated,
but it will be in less than TWO weeks as inc
Santa Fe takes possession Of the Midland on Oc'o-
Der :. The gobble of the two lines by the santa
Fe is the greatest move ever mace IN tne "eso'
While the Santa Fe only gains about 6oo nnieS
ht, n
for itself practically another line to the faclnc
Coast. and thereby becomes one Of the
most powerful systems the CONT
nent With two transcontinental lines
and no competition from the Union Pacinc u
Wyoming on the north and with the Gull o.
Mexico on the south, the Santa Fe Will be mon
arch Of ell 1t surveys. The purchase OF the fu0
Grande Western cannot but operate dlsasuouslS
10 the Denver and Rio Grande. The western Is
its only outlet to and from the West, and IT only
fair to presume that the Santa Fe would refuse
"a receive any tiaIlc from the Denver and Rio
Grandes. The deal will have the effect Of smashing
the Rio Grande Midland route, which was formea
By the Midland, Denver and Rio GIandc'
and Rio Grande and Western. The line was
formed to make an aggressive fight for through
business against the Santa Fe ON the sou'n anu
the Union Pacific on the north. AT Denver 1ne
business was 10 be divided among the Missouri
Pacific aud the Rock Island aud Burlington but the
maSter.stIoke Of the Santa Re has nuinhea OIL
these well-laid plans.
All negotiations have been conducted b. Presi.
dent Marvel and Chairman Mognan The Mid
land has never been a success. owing to poor
MANAGEMENT By the transfer Midland
stockholders receive ffty-one cents for
tile thirty .tlree cents they invested two
years ago, while the Santa Fe assumes the
first, second and third mortgage bonds. 10 view
of the fact that it. is possible that the Denver
and Rio Grande will pass into the control CT The
Santa Fe, especially since it has been deprived
of It's Western outlet. it becomes q matter OF
interest for Colorado people to consider what
the effect Of such a transfer would be upon the
relation Of the Missouri Pacific. the Rock Island
and the Burlington 10 Colorado ana transcon'l'
rental traffic. 1t is safe to say that it will
force these three roads to extend their Lies Into
the mountains.
ASPECT OF THE DEAL AS SEEN IN CHICAGO
Chicaso, Sept. 10 spcciaD.-A railway news burcnu
says "Lttle by little tho details Of ono Of the most
Gigantic railroad deals In history arc coming to nghI
Il seems impossible get all the particulars as theV
are fully known only few railroad presidents and
such banking firms Kidder. Peabody d CO.. Drexel
Morgan Co. and Barring Bros. The known iac's
are that the Southern Pacific, Missouri Pacific ana
Atchson systems tave come to such close unoef
standing that they are, TO all p'ens and purposes IN
der ono management The alliance Is NOT Only o'
fensive but offensive. 1t is O perfectly open secret
that the Southern Poetic holds the most cordial hatred
toward the Union Pacific and never turns over To that
road pound Of unsigned freight. Tho Atcnison mas
Of late come to bate tho Rock Island road as cordaS
and the bold strike Of buying the Colorado Mdlah"
completely blocks the Rock Island from tho iornauon
Of lis contemplated transcontnenta una
tovn ~ al fhis alleged lOtcrNlCW Will
Rto Grande Western officials that the ANhIon mas
bought their road. President Marvel. OF the AtcHIon
enrhaucally denied this report today, however,
white acknowledging the purchase OF the Noio
rsdo Midland. He admitted the ihcons'S'.n,S
also Of the Atchson buying the Colorado MIA
land without a thorough understanding with the
Rio (;rsnde Western people. That this Understanding
exists wss learned later. 1t appears mat oel"e
r.il Of tho Colorado Midland was laid, castron' per
petuaa contract was drawn up giving to the Coorao
Midland mileage rights from its Junction 70 oeoen
This contract Is binding, NO matter WHO owns tc Ooi
or.co Midland. and as consequence, it Is perfectly
unnecessary for the Atchison to spend doDar Ior f
Cyarde Western securities. let alo:!c buying conVroh
ing interest In its 800 0OO 900 Of seclrcs Ipe ne
is Main that the Atchison now has two Gsnsrohu
mental lines connecting at Mojsve 'nd ogden VIVA u'
Southern Pacific. ,,
rho fcIl rst OF members Of the Southwestern Ran
road and Steamship Association was 10 day learned 10
the first time. They are tie Southern PACING AiS'o"'
Puclnc. St, LOUIS. Iron Mountain and southern: az
ahss.as and Tcxas, Kansas City, Fort scott an,
Memphis Atsh;on system psnvrG Iexas a.. ana 1t tT
MVi.,s Woran;s line Of steamers and Cronwcltl
Inc u steamers All tho above are rd sssSpv
IN rate maWcts q! ,m,tiec Three OF this oxocutiv
Committee arc the Immediate ;ep'csentatyse OF Y.
Huntington, Jay Gould and Alien naDVei
INTERSTATE COMMISSIONERS AT WORK
Commissioners Augustus schoonmaEef ono "si'e
30 ~ ,he Interstate Railway Commission. me
Yesterday at Room As in the Federal Building: 70 nea
testimony On the complaint made BY the New. .or
and Northern Railroad Company against 'ne NC"
ooh ma HOusltOnic valley IN