The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1891-09-30
RAILWAY MATTERS.
Gould and Huntington Conspire- The
Union Pacific Funding Plan.

NEW YORK, Sept. 29.-Gould and Hunt
ington have great railway deal in view.
The competitors in the grain traffic now OF
the Southwestern system, Which includes
the Missouri Pacific, Union Pacific, South
ern Pacific and Texas Pacific and branch
lines, are the Atchison, Rock lslanu' CHI
cago, Burlington and Quincy, Northwest
ern, st. Paul and branch lines.
If, by being able to make connection WIN
New Orleans, referred to by Mr.. Gould IN
Saturdays inspired interview, the Missouri
Pacific and Central Pacific systems Will De
enabled to lay down grain at New Orleans
for the same price that the other grangers
roads do in Chicago, 1t stands to reason
that the grain traffic of pretty much the en-
tire Southwest will be diverted to the South.
western system, as tidewater is reached at
New Orleans, whereas it is 1000 miles from
Chicago. Ocean freights. too. are proven
bially lower from New Orleans than from
New York.
Huntington can add to the great grain
carrying trade of the Southwest the trans
continental traffic from California over the
Southern Pacific. The connection at Mem
phis referred to by Mr.. Gould would bring
the Southwestern system in close relations
with the Richmond Terminal, which owes
100000 floating debt; and if Mr.. Gould
saw ut to go to its assistance the southwest
ern system might extend its control to this
company. thus including all the railroads
in the Southern belt of the country except
the Louisville and Nashville.
MIR. Gould, in planning railroad deal,
usually starts by reducing everything to a
cheap basis, so that the new connections
may be acquired economically, and this Is
alleged to be the explanation Of his policy
in tile Missouri Pacific.
THE UNION PACIFIC PLAN,
Dow-Jones 81 Co.'S Agency says: We
are told on excellent authority that after
Morgan accepted the trusteeshiD of the
Union Pacific plan aud the SupinenesS of
the Gould people became apparent, confer
ence of leading bankers WAS held, at which
1t was decided the plan must be made a sue
cess at all hazards, because failure would
be great calamity. Ii was after this the
President of the American Securities and
Trust Company came out publicly and di-
rected attention to tue apathy of the Gould
people, which, it is said, finally forced
Could into making subscription to the
mites.
The stock market tits morning opened
lower, the losses from last nights figures in
most cases being small fractions. In early
trading there was general Improvement.
Later III the hour special weakness was de-
veloped in Rork Island, and it dropped from
81 To S23, and later the entire active list fol-
lowed, most of the leading shares losing.
BOSTON, Sept 29-The subscription to
the Union Pacific funding plan is sufficient
to pay off all the company's floating debt
The company has now over S4,000,0OO notes
authorized, which eau be issued If the neces-
sity calls for it. Ii can be stated authOrlta-
lively that Drexel, Morgan & Co. do not re-
ceiye penny as commission Tor fnanciering
the company.
REPORT DENIED.
Vice-President Reinhart of the Atehison
says there is absolutely no truth in the re-
port from New York that the Atchison is
negotiating for control of the Quincy, Omaha
and Kansas City line.
THE NEW ARIZONA ROAD.
PHGNIx tAriz), Sept. 29.-The work OF
construction on the Santa Fe, Prescott and
Phoenix Railroad, which Will connect Phu-
nix and the great river valley with the
Santa Fe system, began in dead earnest to-
day. Yesterday Mr.. ID. Robinson, Presi-
dent OF the road, awarded the first contract
for twenty miles OF grading to Mr.. z. ToOhy,
who started in to-day with some 200 teams
and considerable number of MEN, which
force will be rapidly increased. Mr.. Rob-
inson says that work will also begin in a
| short time at Ashfork, on the A. and p and
that the track will be laid from that end of
the road. All doubt OF the construction Of
| the read Is removed, as its early completion
has been fully determined upon and the
funds are ample to carry cut the enterprise.
| Its construction Is a matter of the utmost
| imporLan . 30 the Territory at large, and
the Salt River and ella valleys in particu ar
| as IL opens up new commercial relations
and will enable the people of the Territory
| to live largely within themselves by inter-
| change OF the lumber, coal, etc, of portions
| of the Territory for the agricultural and
| horticultural products of the great central
| valleys. The construction of the road has
| served to quicken the business interests of
Phoenix and Salt River Valley very largely.
PACIFIC COAST RATES.
CINCINNATI, Sept. 29.-At a meeting of
the General Passenger Agents of the Cen
trail Traffic Association yesterday rates to
| the Pacific Coast were adjusted. They are
to be based on fare of SIS from Cincinnati
to Kansas City aud beyond that to follow
| transcOnt nental rates.