Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1891-02-19

The Wizard Has Millions at His Backs
In Possession of the Coveted Connect
ing Link.


In Possession of the Coveted Connect
ing Link.
The Philadelphia Recor6 says; Jay
Gould now controls the voting power of
tive-eighths of the Baltimore 81 Ohio
common stock, and has until june, 1898,
to call in the option at price agreed
upon but not yet given ont In the
meantime he guarantees TO the grantors
Of the option the usual dividends
whether earned by the road or not, but
il is naturally supposed that he will
turn over to the company sufficient traffic
to save his private funds from loss, or
else will so use the Baltimore IL Ohio
that the Pennsylvania, in effect, will
make mp the deficiency, not directly, but
by an enforced freight and traffic con
tribution to Gould's general system.
The retirement Of President Norton
from the presidency of the Louisville
& Nashville, to take effect on April list,
or whenever a successor shall be elected,
is regarded ON the street as one Of the
best and most effective cardsever played
by the Little Wizard. As was said yes
terday the resignation was otaltogether
voluntary, and the directorate is now so
constituted that Gould can use il either
to maintain the present relations of the
road with the Pennsylvania, or else
effect another deal with and in favor of
the Richmond Terminal.
The street opinion, evidently sup
ported by fact, is TO the effect that the
Louisville & Nashville will be Obliged
to pay its next two or three dividends
in script instead Of cash, and that the
bulk Of the net earnings will be used
for betterments and the construction Of
new branch lines. Mr.. Norton was OPP
posed to an abandonment Of the cash
dividends which he had been insru-
mental in restoring, and this was the
main point of difference between him
self and Gould that led to his retirement.
Gould, by this last deal, acquires con
troll of property running up in value
into the hundreds of millions, and it is
not an eXaggeratiOn to state that hall q
billion of dollars of railroad stock are
now subject to his control and vote. The
question is, where does the money come
from? Gould, with all his holdings Of
stock, bonds and cash, is not credited
with being worth more than SlO0,000,000
and these are of "a character that makes
full realization of their value imp0s-
sible when thrown on the mar
ket in block. He has not, however,
sold any stock, excepting as Il blind,
but, on the other hand, has bought
heavily both Of his specialties and Of the
other stocks mentioned in the deal.
Other people, therefore, have supplied
the greater part of the funds. A great
portion of this has undoubtedly come
from the companies Immediately con
cerncd III the scheme, but credible re-
port has it that Drexel, Morgan u Co.,
and Kidder, Peabody & Co., have played
into Gould's hands through their Euro
pean connections. This report obtains
credence from the fact of the two firms
several connections with the Baltimore
u Ohio and the Atchison, one needed
link, and the other q prominent factor
in the new interoceanic system.
But there was and is another source
Of supply, and that source is undoubt-
edly Rockefeller of the Standard Trust,
heavy holder Of Northern Pacific
stock and would-be railway magnate.
Gould has used Huntington Of the
Southern Pacific as a card against Rookie
fellar, and if one fails the other can take
his place.
In the entire deal, Gould holds the
balance Of power and directs the use of
funds that others have supplied Those
funds control to-day at least 40 per cent
Of the railway mileage OF the country,