Evening star., 1902-09-11
MILLIONS IN BONDS
Official Announcement Ex-
pected Shortly.
THE GOULD RAILWAYS
CONNECTION AND TERMINAL FOR
WESTERN MARYLAND.
Proposed Fighting Over ousting
Western Union-Merger of
Trolley Lines.


Another step in the Gould plan for the re-
organization of the Western Maryland and
West Virginia Central railroads as part
of the Wabash system is said to be the i'm
mediate issuance of so, ZOO, 600 in per
cent bonds, the official announcement Of
which is expected in a few days. These
bonds are to be part of a total authorized
issue of 500, 900 900, and are to be secuT ed
by first mortgage on the Western Maryland,
the West Virginia Central and the Pitts
burg railways, and the 100000 acres Of the
coal lands and ether properties of the Davis
Coal and Coke Company, which is a sub
sidiary company of the West Virg MIA Cen
trail
The object of the issue of So 900 900 of
bonds is said to be to supply money to
finance the purchase of the prope tics, and
to make such improvements as new ter
minals in Baltimore, reconstruct and equip
the Western Maryland road build an ex-
tension from Cherry Run, w. Va, to Cum
berland. there to connect the Western
Maryland with the West Virginia Central
and to make improvements also on the lat
ter road
The Mercantile Trust Company of New
York will be the trustee of the mortgage,
and syndicate is now being formed by
Nermilye & Company and George P. Butler
* Bro. of New York to underwrite the
s2o.En,0D issue. The remaining SO. .0G9 coo
will be held IN the treasury to pay off at
maturity the underlying bonds of the West
ern Maryland and the bonds of the West
Virginia Central, both of which aggregate
only about 81 800 go
There is also to be an issue of stock in
the nsar future on these joint properties.
but 1t has been unofficialy stated that this
stock will not be given bonus with the
bonds, as is frequently done. The bonds
Will be offered in New York, Baltimore,
Pittsburg and elsewhere. and it is said that
a considerable amount of Baltimore capital
has already been secured for their pur-
chase.
Goulds and Pennsy to Go to Law.
The action of the Pennsylvania railroad
in disp!acing the Western Union lines from
it's offices will soon be contested In the
courts. This means, 1t is declared a legal
battle between the many multi-millionaIres
of the Western Union Company against
President Cassatt and the powerful cap
tans of industry of the Pennsylvania road.
That it will be bitter, far-reaching and
perhaps one OF the most important legal
contests in the history of the country is
the opinion of those who have been follow
ing the Gould and Pennsylvania contest Tor
railroad control in the east of which The
Western Union matter Is considered IN
incident.
Specially engaged counsel for the Goulds
are now engaged in the preparation of the
case on the part of the Western Union, and
1t Is predicted that bills in equity will
shortly be filed restra lining the Pennsylva-
mia and the Postal Telegraph companies
from removing from the Pennsylvania right
of way east of Pittsburg and Erie either
the poles or wires of the Western Union.
Trolley Lines to Merge.
One of the largest electric road mergers
ever attempted is announced from New
York today. A syndicate is said to have
been formed, with Mr. Edwin Gould at its
head, to merge all of the trolley lines in
northern New Jersey into one system. To
carry out this project many millions of
dollars will be required. burt it Is declared
that the money is already in sight and that
it will only be short time before the
trolley trust will take its place on the
corporation books of New Jersey and add
its mite to the support of state expenses
The roads which will pass into Mr.. Gould's
hands under this scheme are the North
Jersey Traction Company, the Jersey City,
Hoboken and Paterson Traction Company
the Central New Jersey Traction Com
pany and numerous smaller lines now con-
trolled by the larger ones named and all
forming network connecting Jersey City.
Newark, Paterson, Elizabeth and nearby
towns.
Heavy Judgment Against Texas Road
ne we" Olh STATE supreme court has
just rendered judgment for s49S4 517 20
against the Memphis. Ell Paso and Pacific
Railroad Company in favor of Charles b.
Brown. The judgment was obtained by de-
fault on the part of the railroad company
which was long ago merged into the Texas
Pacific route. MIR. Brown is the holder of
1857 bonds, of the value of $1,000 each
These bonds were Issued February a. 1867
payable January l, 1890. Accrued interest
on the same has swelled the claim to s. OOO,-
900 The road went into the hands of a re-
ceiver in 1870. but it was charged at the
time that the judge of the United States
court who signed the order had no juris-
diction. There was an investigation of the
matter by congressional committee and
subsequently the supreme court of the
state declared the receiverShip void The
receiver had in the meantime disposed of
the property. Mr.. Brown was unable to
sue on the bonds in Texas on account of the
statute OF limitations. He found that every
officer of the road at the time the bonds
were issued. with the exception of William
Schmoele, jr., assistant treasurer had died
Mr.. Schmoele, who lives in Portsmouth,
Va, went to New York, where the sum
mons was served on him. No defense was
made.
A certified copy of the judgment will be
filed in Texas Immediately, and proceed
ings brought against the Texas and Pacific
Company for the foreclosure Of the mort
gage which was given by the defunct road
to secure the bonds The judgment OBJ
tained in New York Is declared TO be valid
In Texas, and the prophecy is made by Mr.
Browns attorneys that the case there will
be successful.
Gates Sells Out to Gould.
dispatch from Denver. Col, states that
John w. Gates has transferred his entire
interest in the Colorado Fuel and Iron Com
pany to George ]. Gould, through persons
representing the Osgood interests. Mr.
Gould is now in the west, and is said to
have visited the property of the company
recently, since which time he has kept the
wires between Denver and New York hot.
A formal announcement Of the deal Is ex-
pected to be made by the Gates interests in
short time.
A Seven-Mile Tunnel.
A tunnel nearly seven miles long and to
cost $14,0OO.0O0 is one Of the improvements
to the lines Of the Southern Pacific which
President E. H. Hartman of that road is
now considering. The tunnel Is to pierce
the Sierra Nevada mountains 1t will cut
down the summit grade 1900 feet and will