The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-06-30
MUST RECKON WITH GOULD.
YOUNG RAILROAD MAGNATE SHOWS
DISPOSITION TO BREAK INTO
PENNsYLvAMA's BAILIWICK
CONTRACT WITH CARNEGIE
Little Doubt in Railroad Circles
That He wilt Build a
Line Into Pitts
4 burg.

Il
]. Pierpont Morgans dominating griE
on the railroad and steel situation is
threatened as it has not been since he
became the leading1Isfactor in the fnan-
cial, railroad and Industrial world, says
the Philadelphia North American
| George ]. Gould, who. all along, has
! shown a decided mind of his own and q
no less determined purpose to carry out
plan Of his own, has Won In the first
skirmish. He will push line into Pitts
burg. regardless of what the conse-
| quences may be- Morgan, who under
took to control him in the interests OF
harmony, has failed In the attempt.
What the end will be no man can pre-
dict. 1t IS certain, however, that the eff
feet has already been to cause a shake
up in the railroad woSId and a com
plete readjustment of the steel situation
So far as can be seen, Morgan interests
have gained nothing, wOs:e they have
suffered much from the moves that have
been made within the last few weeks
What is more, there are strong indica-
tons that the Rockefeller interests will
break away from Morgan.
When an understanding was reached
ahcut year ago for division of the
coal business Mr. Morgan agreed that
Pennsylvania railroad interests should
have the bituminous trade in considera-
ton of their giving him free hand in
the anthracite trade, which he wanted
to dominate in behalf of Reading Le-
high Valley and Jersey Central interests.
AS part of this agreement Morgan I'M
6ertook to control Gould, and, in the
interests Of the Pennsylvania group, to
keep him out of PIttsburg. Recently
Russell Sage and. 1Hetty Green Joined
forces with Gould, who it is authorita-
lively stated, has now determined to
push into Pittsburg. at all hazards and
without further delay.
There are business reasons Of prime
Importance to the Gould system of rail-
roads behind this determination. George
]. Gould holds a contract made just
prior to the Organization Of the steel
trust, and signed by Andrew Carnegie,
which, conditioned upon the Wabash
running an extension into PiGsburg,
guarantees to it for twenty years 20 per
cent Of the entire freight business of all
the Carnegie works, with a minimum of
l,C00,050 tons per year. In addition to
this it gives Gould trackage rights for
his own trains between Pittsburg and
Erie over the Bessemer e. Lake Erie
railroad, which is leased to the Carnegie
company, and also similar privileges
over the new Carnegie road being built
from Pittsburg south through Washing
ton and Greene counties into the best
coking, gas and oil districts of Virginia
In all of this Gould threatens the Penn
sylvania's control of the bituminous sit
uation
THE PITTSBURG ORDINANCE
The immediate indication, so far as the
public can see, of Gould's purpose to in
wade Pittsburg with the Wabash extern
sion is the announcement that Recorder
Brown is preparing a. message to the
Pittsburg city council asking that they
take up at once the ordinance intro
duced last March, granting the Wheel
ing and Lake Erie, t. . Wabash connec-
ton, the right to tunnel through Mt
Washington and go into Pittsburg at
Ferry and Liberty streets. The or
dinance does not ask for any streets as
the proposed line will be built on private
property upon which options nave been
obtained.
The Chamber of Commerce and MANY
influential manufacturers of Pittsburg
have declared themselves IN favor of the
ord nance, the passage Of which without
further delay is being urged by most Of
the Pittsburg papers.
Gould has taken steps to protect mis-
system of railroads against the retalia-
ton that might be attempted through the
steel trusts Within the last ten days
Gould interests, it is authoritatively stat
ed, have acquired controlling influence
in the Lackawanna Ircn and Steel com
pany by furnishing the money necessary
to increase it's -steel rail capacity from
$4,000 to 100000 tons a year, and to pay
for two large iron ore fields on Lake
Superior win; ch have just been bought.
The two mills Of the Lackawanna Iron
and Steel company at Scranton Will be
enlarged, it is stated and great plant
upon which work has already com
menced, will be built at Stony Point, on
Lake Erie, near Buffalo. Lake ores will
be used there, while the ores for the
Scranton works will be drawn, as now,
from the Cornwall iron ore beds, near
Lebanon, Pa, in which the Lackawanna
owns large minority interest
Thus 1t would seem that Gould has
played his cards in a manner which not
only opens way into Pittsburg for his
railway system, but which also places
him in a position most difficult of at
tack. The Wabash, having line Of its
own to Buffalo, is pretty we'll protected
in that direction. The Delaware, Lacka-
wanna and Western, which it was recently
announced had become one of the Gould
lines, gives an outlet to New York Up
to this time all the talk of an Eastern
end for the Gould railroad system has
conferred upon the Lackawanna, but In
this direction, it is limited, there may
be further surprises in store.
While Gould has been quietly at work
to carry out his scheme, the Pennsyl-
vanta railroad people have not been
asleep. At the same time, as was stated
yesterday by one who has been kept ad-
vised of each move as 1t has been made
their aggressive activity has covered a
comparatively short period Up to a date
subsequent to Mr.. Morgans departure
for Europe, 1t was confidently believed