Evening star. [volume] (Washington, D.C.) 1854-1972, 1902-07-18
GOSSIP FROM GOTHAM
Gould's Plan to Fight the
Pennsylvania.
OVER TELEGRAPH DEAL
WILL EXTEND HIS SYSTEM EAST
AND SOUTH.
Washington May Be a Beneficiary in
Getting Another Line to
This City.
OVER TELEGRAPH DEAL

speclaI Correspondence of The Evening Star.
NEW YORK, July II. 1852.
George Gould proposes to invade New
York territory with his system of trans
continental railroads A battle royal is ap
preaching which will double discount the
famous Northern Pacific struggle for
premacy last spring-a struggle which
forced a single stock up nearly thousand
points, and which all but wrecked the
community of interests arrangement.
Briefly the situation it exists today is
as follows: After the West Shore railroad
had been completed-after Cal" Brice, the
poor struggling Ohio lad, who afterward be-
came United States senator, had succeeded
in forcing the yanderbilts into buying the
''Nickle Plate clearing millions at sin
gle bound. 1t was agreed among the bankers
and financiers, the railroad men who hold
the destinies Of Wall street, that never
again should an Independent or competing
line between New York and Chicago be
financed. 1t was seen that in order to con-
troll passenger and freight rates between
the metropolis of the east and the metrop-
oils of the middle west, 1t would be always
necessary to buy out any Independent line
between New York and Chicago. The build
ing Of independent lines, it was argued,
would allow opportunities for brilliant
plaCkIn9llnR OF the TdllTOdu pool 10 Say
nothing Of the added expense of operation,
etc. If additional railroad facilities were
needed 1t was agreed that they were to be
furnished by additional tracks to be built
along the line of the existing roads. Prac-
ttcally this has resulted in the great city OF
New York being held down by two railroad
systems-the Vanderbilts, who own both
sides of the Hudson river all the way from
New York to Albany, controlling the situa-
tion IN north and east, the Pennsylvania,
owned by English and American million
aires, but controlled by J. PierpOnt Nor
gan, debating the situation to the south
and west of New York city.
Origin of the Trouble.
The remote cause of the trouble between
the Pennsylvania railroad and the Western
Union was the invasion in the Pittsburs
field by the Gould interests. 1t is true. the
break did not come until the Gould interests
had made another forward movement and
invaded the Baltimore field and the sea-
board territory. But bad blood has existed
between Pennsylvania people and the Gould
interests ever since George Gould insisted
upon the United States Steel Corporation
carrying out what is known the Carnegie
contract This is contract which was
handed down to the billion dollar steel cor
poration by the Carnegie companies. which
were absorbed by the giant steel combine
and II practically gives the Gould interests
the right to carry 100000 tons of steel
per dHhuIl LOT a perlpC OF tNenty-i years.
Besides this contract the arrange ment be
tween the Western Union and the Pennsyl-
wanna railroad, allowing the Western Union
to man the railroad Offices OF the Pennsyl-
vania sinks into insignificance. In short
he had to let go something and he let the
smaller proposition gO-virtually sacrificing
his telegraph to his transportation interests
Plans of the Goulds.
1t is known that the Goulds are now as
far east as Buffalo and as far south as
Baltimore. They are now planning an ex-
tension from the latter point to Washing
ton. Negotiations are going on between
the representatives of the Gould Wabash
system and the owners Of the Baltimore
and Southern which will permit this. Ed
ward Lauterbach Of this city is one of the
two owners of the Drum Point or Baltimore
and Southern railroad. Frank Beidler of
Baltimore, the other owner, has admitted
that negotiations with the Gould syndicate
are on. Fifty-eight miles of the road are
graded The company owns fifty acres of
land on front where the water Is ninety
feet deep. The capitalization is 81 900 900
The road can be completed for $500 600 and
offers great facilities for soft coal ship
ments. The franchises of the Baltimore
and Southern would be of great value to
the Goulds for their contemplated extension
TO Washington. Congress has passed a bill
authorizing the Columbia and Southern to
construct to Washington This is the GOuId
scheme. To go to Baltimore by the West
ern Maryland and then go all the way round
20 Drum Point would be too great an in
crease Of haul except, perhaps, for through
shipments OF soft coal The GouIds will
use the Baltimore and Southern's privileges
Tor an extension OF their system to the ma
tons capital. Plans for the terminals az
Baltimore are nearly finished.
Fight Will Be to Finish.
That the fight between the telegraph
Companies and the railroads will be to a
finish is indicated by the introduction of a
bill into the United States Senate by United
States Senator Penrose Of PENNSYLVANIA
just before the adjournment Of Congress.
The bill. which is labeled Senate bill No
o5oI' Is said TO be a proposition to have the
government control the telegraph lines of
the country. The bill is as follows.
BE 1t enacted by the Senate and House
OF Representatives of the United States of
america, in Congress assembled, That the
postmaster General be. and he is hereby
authorized and directed to enter into con-
tract with any existing telegraph companv
or with any telegraph company that NAV
hereafter be Incorporated. for the transmits
Sion OF postal money orders by wire i'm
ciphergram or otherwise instead Of nv
mall and between the cities Of Washing
ION. Baltimore. Philadelphia, New York.
Boston and intermediate points and he lie
hereby authorized TO extend the service
wherever he may find the revenue eouaI to
The expenses Of the service The charge
as tite u a al OF SUCH postal money
oroers snail be at the telegraph rates fixed
oy the Postmaster General under the act
OF July "a, 1868. '''e act
section 2. Any company hereafter or
canned Tor the purpose of carrying into
effect this act shall have all the rights 80
privileges extended to companies under tba
act of July "a 1866 INC
The thirty-five words in the second car
tion OF Inc act practically grants a national
charter TO prospective telegraph cnmnanJ,
and the powerful men back of the bjIi
make no secret of the fact that IT Is the
opening wedge for government Telegram
The transmission of postal money orders
by telegraph is an unimportant deta1 ~
the greater proposition, which NAV prove
? death blow 10 the great Gould system or
telegraph. VI
Men Who Engineered the Deal.
The men who separated the Pennsylva
MIA railroad from the Western Union are
declared 70 be the men who nronose 20