Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1902-09-13
Financial Alliance Between Wander
biIt and Pennsylvania Interests.
BIGGEST DEAL RECORDED.
Cleveland Leader Tells OF tho Latest
Railroad trust . hat 10 About
To be Floated.


today says
A financial alliance has been form
by the two great railroad factors In
the eastern field, the Vanderbilt inter-
ests and those Of the Pennsylvania sys.
lem. The working agreement has been
close in the past bat It has never come
. an allotment Of territory aud division
Of property as the new arrangement
entails. She new combination viii have
capitalization of 100000 600 ana Il
mileage Of $1,000 miles. The atm of
The organization is to dominate traffic
between Chicago and st, Louis, the
great lakes and the Ohio river and
he Canadian boundary and the Po-
tomac river through to the Atlantic
coast.
The new combination grew out OF
competitive movement Of several
months ago, The two big interests
we're mutually interested in the BIZ
luminous coal fields and in the hard
coal fields as well. The Pennsylvania
system predominated in the former and
he Vanderbilts In the latter BY an
understanding the NAnderbits yielded
the soft coal fields TO the Pennsylvania
in return for q similar concession on
the hard coal from Pennsylvania. The
eastern field was threatened by inva-
son first by the Goulds and later by
the Grand Trunk and these big finan-
cial interests wanted to preserve the
territory Tor themselves and the ties
that had been formed by the coal deal
were strengthened In the endeavor TO
protect the eastern fields. The interests
Of the two big houses were growing
gradually together and soon resulted
in an understanding such as has been
now reached
A short time ago--just before w. X
Vanderbilt went abroad-Mr, Crassatt.
the president of the Pennsylvania rail-
road went 10 New York to call upon
him. This is the meeting Of which 80
much was conjectnred at the time, but
20 little known definitely. At that time
e was agreed 10 form an alliance Of
fensive and defensive, in the east TO
completely control the situation and
exclude all others from that field ex-
cept the favored members of the ali-
ance
The combination of interests makes
one Of the biggest deals that has ever
been seen. To consider the vested
rights of the two big houses east of
Chicago, to say nothing of their pro-
perty west of that point. gives them a
capitalization OF over $1,000 100000 and
mileage of over 10000
The organization promises to be the
most dominating that has ever been
formed. The alm, Of 1t Is to control
the transportation facilities between
Chicago and st. Louis, the great lakes,
Ohio river and the Canadian boundary
and the Potomac, through to the At
lantic coast. In that territory they
will leglsate rates and conditions and
DO about az they please, subject only
10 the interference OF the Interstate
commerce commission and 1t is their
elm to block the progress of every
other road which tries to invade that
territory. They are not content with
the establishment Of a supervision anf
oversight OF the transportation tacili-
tics Of that territory, but also control
the coal mines. many OF the steel mills
and all Of the elevators for the export
end transshipment of grain. The roads
included in the combination are the
New York Central Pennsylvania, Bal
timore & Ohio, Chesapeake & Ohio,
Norfolk & Western Philadelphia &
Reading, Lake Shore. Big -Four, Michi-
gan Central. Nickel Plate, Boston K
Albany. Baltimore & Ohio Southwest
ern, Pere Marquette Hooking Valley
and Lake Erie & Western.
Eastern papers are predicting that
he Pennsylvania railway will ulti-
mately acquire the Santa Fe, making a
single system from ocean to ocean. AS
evidence of this assertion the heavy
trading in Santa Fe stock Is construed
as having but one meaning. IL Is also
predicted that when the deal Is finally
consummated that It must and will he
followed by a general amalgamatior
% all the railroads In the United States
under single head.
The Santa Fe. system embraces more
than 5000 miles OF track, stretching
from Chicago and Kansas City to Gal.
weston in the south and westward u
os Angeles and San Francisco. II taps
Denver and hundred important small
or towns in the southwest-the home Of
the Gould roads Joined with the Penn
sylvania II would constitute the most
gigantic railroad system Of the whole
world. II would compete a direct
transcontinental trunk line, with 25.00O
m.'es Of track. II would have termin-
OILS in the great cities OF the east-New
York. Philadelphia, Baltimore. Wash
ington and pittsbuw. II would be i'm.
iregnable in Chicago, st Louis Kansas
city and Denver. and would be the only
rival TO the Southern Pacific lines into
San Francisco This stupendous az
tionwould dominate the coal fields
OF the east. feed upon the grain fields
NJ the middle west and carry the cattle
of the southwest.
SAITAIR SEASON |