The herald., 1895-10-15
The VanderbiIts Want Control
of Pacific Lines
ROAD FROM COAST TO COAST
Able Lieutenants of The Great Mag
mates AT Work
Before Definite Action Is Taken Congress
Will Be Asked to Release Debts
To The Government


Associated Press Sp6cldI wire
CHICAGO, Oct. 14.-There Is a rumor
current in railway circles that the Van
derbilts are seeking to obtain control of
the Union Pacific and Central Pacific
with view to having a transcontinental
road from New York to San Francisco.
The Chicago Tribune, in an article on
this subject, says:
Ever since the famous contract was
made between the Union Pacific and the
Chicago & Northwestern railways, where
by the former secured the right to die.
tate the through rates from the west to
Chicago and the latter the through rates
from Chicago to points on the Union Pa
ciic west OF Omaha rumors have beenIcur.
rent that the .Vanderbilis would sooner or
later secure control OF the Union Pacific
property. A plan for the reorganization
of the Union Pacific is now in course of
preparation and the prelimin ~ steps al
ready taken indicate beyond a doubt that
when the Union Pacific gets out of the
hands of the receiver it will be controlled
and operated by the Chicago e. North
western. which is one of the Vanderbilt
roads.
"The reorganization com mittse which
has Just been announced has among its
mem bers Chauncey NJ. Depew, president
of the New York Central, ana Marvin
Hughtt, president of the Northwestern.
These two able lieutsnants of the Van
eerbilts will no DOUBT be. able to control
the other members of the committee. who
are mostly presidents of trust companies
holding Union Pacific securities. At one
tims Jay Gould held controlling inter-
est in the Union Pacific, aud this, 1t is
said has been secured by the Wander
bil,s. A deal is said to have been made
between George Gould and thes Van
derbilts whereby the former is to be
given control of the Kansas Pacific.
which IS to be operated by the Missouri
Pacihc, while the latter will take the
main line of the Union Pacific from
Omaha west and make it part of the
Northwestern system. The Wander bilts
have no use for the Kansas Pacific, as
they have no line to Kansas City to con-
meet with it and besides the main line of
the Union Pacific from Omaha Will give
them an outlet TO Denver by the Jules
burg cut Off. ="
with the Union Pacific in control of
the Chicago and Northwestern the latter
will have direct and independent line
direct from Chicago through to Ogden
and Salt Lake, with a branch line to
Denver, which will i've it a great ad-
vantage over the Burlington and Rock
Island roads, which run only to Denver.
Should the Vanderbilts be able also to
keen the Oregon Short Line in the Union
Pacific, they will have independent lines
from New York through to Portland,
Ore.
"The most startling rumor that has
lately gained currency is that the Van
der blts look still further than the ac-
ouisItion of the Union Pacirc and the
oregon Short Line. Their great object and
aim IS SAID TO be the contiol of a line
through to San Francisco, ana to gain
this end il is said they are now negotlat-
ing with C. P. Huntington with a view
of securing control of the Central Pacific.
THE new plan for reorganization of
the Union Pacific is said to provide for
the raising of $40. 00U, 900 on which 6 per
cent and "A com mission will be allowed.
The first step will be the purchase Of de-
faulted coupons. But before any definite
action is taken a determined onslaught
will be made on congress to secure some
action that will relieve the new company
from the burden of the government
debt"
NEW YORK. Oct. 14.-Judge Cornish,
master in chancery in the Union Pacific
litigation, will hear testimony tomorrow
at Omaha in regard to the application
for the division OF the earnings OF the
Oregon Short Line system. TheUnion Pa
cific receivers are understood to have in
their possession ~, 900, 900 of the Oregon
Short Line earnings.
The delay in apportioning these earn.
ings among the lines tributary to the sys-
to N has prevented the payment of the
interest on Oregon Short line skies and
other securities.
The executive committee OF the Union
Pacific held meeting this afternoon at
the offices of the receivers of the system.
George J. Gould attended che conference.
1t is stated that only routine business
was transacted. Counsel for the COM
uittes that have the matter in charge