The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-06-30
that everything was moving along a
cording to programme.
CAUSED THEM TO PONDER.

! CAUSED THEM TO PONDER.
One morning private cable advices re-
! ported that Mr. Morgan was in very pre-
| carious health, and many railroad Of
! f1cials. among them President A. ]. Cas-
satt and his advisers, began to ponder
| seriously upon the question as to how
their railroad interests might be affected
in the event the great fnancier should
suffer some accident
| Morgan was the real head of the steel
| trust, they argued, and directed it's policy.
His effort has been to harmonic all con-
| ficting interests in every direction. With
his hand removed, what then? Was there
any assurance that the great steel COM
bination would not become dictatorial
and put UP prices to suit itself? And if
it did, would not the railroads be at it's
| mercy?
With thoughts such as these racing one
another through railroad managers
brains it is not surprising that they be-
came exercised over the steel situation.
| The Pennsylvania people decided, very
! precip1tously, it is said, that they could
not afford to take such chances, and
must protect the great system under
their control against all contingencies
They turned to the Pennsylvania Steel
company, which, with it's plants at Steel
ton, Penn, and Sparrow's Point, Md,
both located on Pennsylvania lines, seem
| GU particularly Well suited Tor their
needs, and, through bingham B. Morris
a director of the Pennsylvania railroad
and chairman of the executive committee
OF the PENNSYLVANIA Steel company open
ed negotiations for a purchase of the
steel company stock
Pennsylvania interests wanted the en-
IRE control; it is asserted, but John
LoWber Welsh, the story goes, said the
Philadelphia & Reading must be pro-
tected, and insisted that it should be Of
fered an opportunity to obtain an inter
est IN the Pennsylvania Steel, if it so
desired. Then the tonnage basis plan
was determined upon to give the five
great railroads east Of the Ohio stock
purchases of steel rails for the last five
years. This arrangement. which gave
the control Of the Pennsylvania Steel to
Pennsylvania railroad interests was ac-
ceptable to them. But before closing the
zeal they waited until it was positively
assured that the Pennsylvania Steel was
10 procure a large share in the Cornwall
iron ore beds. Without the ability to
obtain an unlimited supply of ore near
at home, which it has through the pur-
chase just concluded, the Pennsylvania
Steel would not have been in satisfac-
of it.
It is not yet determined whether Read
ing interests will take their share of the
Pennsylvania Steel stock, but the gen
eral impression is that they will AS first
told in the North American in announc-
ing the terms of the deal, the Reading
has an alternative proposition from the
Lackawanna Iron and Steel company
and, being a Morgan road, also stands in
a good position with the steel trust as
that combination is now controlled.
KICKING OVER TIE TRACES.
The Reading also has an eye on the
Western Maryland railroad and it is as
serted very positively that the Pennsyl-
vania will make no objection to it's pur-
| chase by the Reading or its friends. This
question, 1T is understood was passed
upon by the several interests at the time
tbs Pennsylvania Steel deal was arrang-
ed.
For some time there have been hints
| that Gould was kicking over the Morgan
traces, and that he was going ahead with
his railroad combination and extension
schemes Recently the Pennsylvania
railroad felt that it could not count with
assurance on Morgan being able to con-
troll Gould, as he had undertaken to do
and that here. too, it was necessary to
| those are has not been divulged, but ru-
| NOR has it that the large purchases of
Atchison stock recently, at a steadily
advancing price, have been by Pennsyi-
vania interests. This has been emphat-
| ically denied by high officers of the Penn
sylyania, but still the report finds gen
with knowing smile to similar denials
in the past, when the Pennsylvania was
buying Baltimore & Ohio, Norfolk Il
Western, etc
A railroad man said yesterday that, not
withstanding the satisfactory traffic ar
| rangement which has existed for several
years between the Pennsylvania and
North-W Western systems. 1t would only be
natural for the Pennsylvania to desire a
Western outlet and feeder which it could
be absolutely sure Of With the Atchison
the Pacific, as well as to the Gulf OF
Mexico, the Pennsylvania would be in
position to protect Itself, and If neces-
sary, strike back at aggressors.
In this connection a remark made yes
terday in a semi official way of a gentle
man IN the pennsylvania railroad execu-
tive office is significant.
Gould is very uncertain factor in the
railroad istuaton,' he said you never
know what he will do. He might be said
to be the one man WHO has not come into
the community-of-interest plans It NAV
be that Pennsylvania and Morgan inter
HIM a lesson"
But notwithstanding this hint that