The Providence news. (Providence [R.I.]) 1891-1906, 1902-09-19
Securities Company TO Control
$4,000 Miles Of Railroad.
CHANCE Of BATTLE OF MILLIONS
RocksfslIsrs With Gould aad W. K. Van
dsThIli With Morgan In Conflict for Coa-
trsI Of The Reading Lines

New York, Sept l9.-The return or
George Gould from the West, Wall street
believes. portends great events In the
railroad world. The first work Mr.. Gould
wall undertake Will be the rehabilitation
OF the securities OF all OF his roads prior
TO the formation OF his great transeontt-
mental line.
One OF the leading interests in st. Louis
and Southwestern. which Is one OF the
Gould properties informed a reporter yes
terday. In Wall street. that at the annual
meeting OF the system. on oct. 6, Mr..
Gould Will submit a proposition 20 ex-
change u per cent bond for the entire
o1tstanding preferred stock OF the road.
Whether this proposition win oame In
tue shape OF an offer from the Missouri
Pacific system 70 take over the pre-
rerred stock OF the road and issue its
per cent bonds 10 not known, but IL Is
stated positively that the bond offer will
The st. Louis and Southwestern Rail-
way company owns 1858 miles of road. and
ana siS5oO, 90 OF common stock. Il has
No; 1875 broadway. where Mr.. Gould
makes his headquarters.
St Louis and Southwestern shaAss
made big advance yesterday. AT one
ume the stock cold up 70 Ts1a ii closed
at HT a net advance OF per cent II Is
appeared In the market, and that there
seems TO be q determined effort on the
the stock before the news OF the bond
issue gets out
One Of the leading owners of the road
said yesterday: When the stock got up
70 high point there was very evident
fr1apipulatlon 70 prevent It's going any
higher. A ell-knowp representative or
the Gould securities placed number OF
takably matched" !"
yesse9ay Tssrs ws sn e M onds f. Wall ya. srsst Ss
story that received the most credsnce was
that Mr.. Gould intends to form a new
holding company TO take over the securi-
This company is to be known as the
Transcontinental Securities company, and
is 10 be formed along the lines OF the
which Mr.. Morgan absorbed and TO which
he practically united the Great Northern,
Northern Pacific and Burlington. The
new company in exchange for the securi-
ties OF the subsidiary lines. These lines
are the Missour Pacific. wabash, West
Ct Louis and southwestern. Internation-
al and Great Northern, Texas and Pa
cific. RIO Grande and Western and Den
yer and Rio Grande.
II is said that the Missouri Pacific sys-
tenn Will receive all OF the preferred stock
OF the new company. These lines repre-
sent enormous Capital investment anu
over 10000 miles, OF road.
1t Is now conceded In Wall street that
the recent action Of j. p. Morgan in con-
tinuing the voting trust, in the Reading
railroad was to thwart the plans OF Mr. |
Gould To forca way into -New-York |
over Reading. The story from Baltimore |
that traffic rates had been arranged be- |
tween the Reading and Western Mary |
land has been absolutely denied. All ar |
have been broken of.
Instead OF being friendly the Penn |
sylvania railroad Is determined to fight |
Mr.. Gould 10 the very last ditch. The |
war IL more bitter than ever before. The |
men in this great battle of millions who |
are allied with George Gould are John |
d. and William Rockefeller y. ". Har- |
riman, Jacob II. Schiff. United States |
Senator ". A. Clark. Henry g. Friok. the |
Moore brothers who control the Rock |
Island, and William Henry Smith. who. |
jofntly with John u. Rockefeller, Is the |
largest holder OF st Paul stock, Russell |
Sage and Kuhn, Loeb & Co. are also with |
the Gould interests. as are the Mercantile |
Trust company, abe Equitable Life and /
the National City bank. |
The principal FACTORS in the Pennsyl- /
yania combination are A. j. Caseatt, |
william K Vanderbilt. Clement A. Girls |
COM Of the American line: j. Pierpont |
Morgan. Marvin Hughitt, the Cramps |
company and the Postal |
Telegraph company, with George F. Ba- /
tional Bank Of Commerce.