Los Angeles herald., 1891-01-11
HAS JAY GOT IT?
A RENEWAL OF THE RUMOR THAT
HE PURCHASED THE SANTA FEE.
Officials and Stockholders of the Great
System Will Not Deny the Assertion.
The Story as Telegraphed.

At the time of the recent panic in
London, and the downfall of the Barring
Brothers, who with their American
house, Kidder, Peabody & Co. OF Boston,
held the controlling interest in the San
ia Fe railroad company, it was gener-
ally believed that the result would be
that Mr.. Jay Gould would secure con-
troll of the great system. The following
special dispatch to the San Francisco
Chronicle under date of the 9th inst, at
New York, gives this rumor some foun-
dation:
1T is rumored this evening in rail
road circles that Jay Gould had gained
control OF the Atchison, Topeka and
Santa Fe railway. The system of the
Santa Fe comprises the Atlantic and Paci-
fic railroad( Western division the South
ern Kansas railway of Texas, the
Southern California railway, the Gulf,
Colorado and Santa Fe road, the Rio
Grande and Ell Paso, the New Mexico
and Arizona, the Sonora railway, the
Chicago, Kansas City, Los Angeles and
San Diego and San Francisco line and
other connections.
''It has been rumored for some time
that Mr.. Gould was after the road, but
no authentic statement has been made
of his acquisition of the property.
Neither Jay Gould nor his son George
would affirm or deny the truth of the
story.
"George G. Magoun, chairman of the
board of directors, is at the Bucking-
ham hotel, but when a reporter called
on him he cent word that he had retired.
"The fact that the Santa Fe's presi-
dent has been working in harmony with
Gould at the meeting of the Western
railway association at the Windsor ho-
tel today, and coupled with the news of
the meeting of Mr.. Gould, President
Maxwell and Mr.. Magoun at the formers
office on Tuesday, was taken at the
Windsor hotel as partial.confirmation of
the report, although no one could be
found who would positively declare the
rumor to be true"
Another special of the same date sent
out from the New York Worlds office
gives the story as follows:
A story went round among the railway
presidents at the Windsor hotel this
morning that Jay Gould has secured
control OF the Atchison, Topeka and
Santa Fe railway, one of the most ex-
tensive systems in America, with 5000
miles of track. 1t was said he had
bought the stock held by Barring Bros. &
Co., of London, which is now in liquida-
tion. The purchase was understood to
have been effected through Kidder, Pea
body & Co., the American correspon-
dents OF the house.
The amount of stock was not known,
but it was reported to be in the neigh
borhood of $4,000 shares. If Mr.. Gould
paid $25 a share, his investment
amounted tv $1,250,OOO. The Atchi-
son would afford Mr.. Gould a
line to Chicago from the
west which he has been seeking for
some time. Its possession would also
remove for all time the competition be-
tween Atchison and the Missouri Pacific,
which at times has been very disastrous.
By building less than 400 miles OF road
from Los Angeles the Atchison would
have road clear through to San Fran
cisco. No confirmation or denial of the
report could be obtained last night from
Mr.. Gould or from George G. Magoun,
chairman OF the board of directors of
the Atchison, and managing partner in
Kidder, Peabody & Co.'s.
''If it were in my power to give you
any information on the subject" said
President Allen Marvel, OF Atchison, "I
would do so. But l only heard of the
the report an hour ago and know no
more about it than others. My position
as president of the company does not
acquaint me with all its financial trans-
actions, and it is possible that such
transaction might have been con-
summated without my knowledge"