Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1890-10-05

Significance of the Purchase of the Colo
RADIO Midland by the Santa Fe.
CHICAGO, October 4th. The Tribune
SAYS The purchase of the Colorado Mid
land road by the Atchison, Topeka and
Santa Fe appears to have greater signi6-
canoe than has been the general i'm
preston. 1t becomes more evident every
day that it was not the object of the Santa
Fe, or rather the bankers who control that
road, to crowd out the Rock Island or any
other road which now terminates 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 formation of
gigantic railway trust or combination Of all
the roads between Chicago and the Pacific
Coast.
The railroad situation in the West is in
a more demoralized condition than ever
before, and unless G pool or combine is
speedily formed that will insure the main
tenance of high rates, many roads will be
pushed to the wall.
To save themselves from serious losses
the bankers who invested heavily in the
Western roads, shortly after the formation
of the "Gentleman's Association" have
been compelled to invest still more heav
lily.
With this end in view, the st. Louis and
San Francisco and the Colorado Midland
lately have been acquired by the Santa Fe.
The principal obstacle in the way of the
consummation Of the bankers scheme is
the Union Pacific and the Northwestern
combination.
Against the latter the arrows of the
bankers seem directed. All the other
Western roads have been sufficiently SUBJ
jugated to enter into any arrangement
that the bankers may propose. Jay Gould
appears TO be in full accord with them,
but the Northwestern Union Pacific COM
bination stands out against the bankers.
The backing of the VandeIbilts gives the
latter combination such strength that 1t
cannot be dislodged without serious con-
hct.
The Union Pacific, since its alliance with
the Northwestern, or rather the Vanderbilt
combine, has been encroaching upon the
territory of the Santa Fe and Gould lines
in ell directions
1t has obtained outlets into Texas both
from Denver and Omaha and is now ex-
tending the Utah Southern from Frisco,
Utah, to the Mojave connection of the
Santa Fe with the Southern Pacific, tap
ping the latter at Ogden and the Mojave.
The Union Pacific Northwestern combina-
ton would stand invincible and be able to
control nearly all the California traffic by
encompasSlnS an a4ilancS Win Inc 0Outn-
ern Pacific.
To spoil such game seems to have been
the object of the Santa Fe people when
they secured control of the Colorado Mid
land line.
If they secure the Denver and Rio Grande
Western also they will have line through
to Salt Lake City and Ogden, where they
can retaliate against the Union Pacific
Northwestern combination if the latter
attempts to show fight at Mojave when
they get there, or try to engineer an ex-
elusive arrangement with the Southern Pa
cific.
The issue is nothing more nor less than
a test of strength between the bankers,
aided by Jay Gould and nearly all of the
other western roads, against the Union Pa
Vanderbilt combination, and which
ever side comes out ahead will be master of
the situation, and until that issue is de-
cided an improvement in Western railroad
affairs cannot be looked for.