Hutchinson gazette. [volume] (Hutchinson, Kan.) 1895-1902, 1899-07-27
MIGHTY RAILWAY TRUST
MAMMOTH SCHEME OF VAN
DERBILT AND MORGAN,
They Have Joined Hands and the Com
bInRtion Of Their Vast Interests Ia Tlrot
Stop Toward tho Control Of the Hail.
ways OF America

~ fNfN @'Ns 49, "AN - ~ N'bhHhNi
today tho dominating factors In the
railroad world.
As recent eventsbhow that consider
alton Is the order OF the day, and that
gradually all OF the prominent trans
portatlon lines In the country are be.
ing gathered into few territorial
groups, 1t would appear that at no dis
tant time these men will WELD n power
uueqnAlled In any other industry
IN tho world.
Each OF these financial giants APP
pears to be pursuing different courses,
although Mr. Morgan has been for
many years on intimate terms with
the Vanderbilt, and has been asso-
cinted with them in many OF their
properties
II has been apparent for some time,
however, that they nre all working
with a thorough understanding, and
from At least one incident, IL seems
that the two great groups known us
the New York Central and Pennsyl-
vania systems, which until lately were
bitter rivals, have swung around and
set out to divide up the territory they
traverse.
They have gone step further, and
u Is asserted on good authority that
they have seriously considered the
idea OF procuring control OF certain
railroads, jointly, and establishing u
pooling system which will adroltly
evade the law and bring all traffic In
tho territory in question under their
management
The fact has never been published
thai the New York Central and Penn.
SylvAnia several weeks ago had ex.
perts examine tho Wabash, with
view to acquiring control OF II for their
common interest, so rs to remove It az
n rate-disturber The experts travel
ed over the road and made u careful
inspection of all its resources, and did
I'LL but 60 over the books
The examination WAS unknown to
the Wabash management, although
one of the officials informed me that
he had received intimations that some.
thing was going on About that time
there was sharp jump in the stock,
which was explained on other grounds
but the real reason WAS that II was
thought by those let into the secret
that the deal was to DO consummated
ht once.
Nothing further however, was done
Mt that time, although the Vanderbilt
and Pennsylvania officials were satis-
fed with the result of the inquiry
The difficulty thai presented itself to
their minds was in what way they
could best bring about their purpose
without the expenditure Of too much
money. Had they announced openly
thut they wanted to buy the Wabash
would have cost them pretty pen.
n.y.
As 1t was, however, they dropped
the matter then and there as II they
had never taken 1t up, but the scheme
is merely resting, and II satisfactory
opportunity arises they will IT is said,
take it up again.
This incident is related to show that
the Vanderbilts and Pennsylvania
folks have at last reco gnized the fact
that they have nothing to gain as
rivals but that their interests lie in the |
direction of active cooperation, and
even assistance to each other.
The person who informed me about
the proposed Wabash deal said also
that gigantic scheme was on foot for
getting control Of all the principal
railroads between New York and Bos-
ton and Chicago and St. Louis in the
of these two great groups, and he said |
that it was supposed to be the plan
to go about this in thoroughly friend
ly spirit, parcelling out the indcpcnd-
emit lines to which ever system they
will be of the greatest benefit.
In this way they would stamp out
once for all the pernicious practice of
rate cutting, which costs the railroads
Of this country many millions of dol
lars annually which would otherwise
DO divided among the stockholders as
dividends
OF course, the New York CENTRAL
and Pennsylvania officials have siren
uously denied that they have formed
any alliance and that they have reach
cd an agreement which would SAVIOR of
3 monopoly and possibly result in
making hard and fast rates from
from which the public would have no
relief. The friendlness of the direc-
tors of the two companies over the
Boston and Albany deal, however,
shows which way the wind Is blow
ing.
1t was a novel sight to see A. ]. Gas
satt, the president, and y. M. Provost,
Tho vice rreRident of the ppnnsvl yanin |