Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1902-09-18
|GOU.i[D'S BIGC0 ] \ B !
WILL FORM Il SECURITIES con-
PANY TO HOLD LINES.
MODELLED AFTER NORTHERN.
It win Hold stock Of All the Could
Roads, Representing Many Mil.
lions of Dollars nnd Thousands OF
Miles of Track.

ss9 NEW YORK, September 17.-(SpeciaE)-.
The return OF George Gould from the
West, Wall street believes, portends great
events in the railroad world The first
work of Nj. Could will undertake will be
the rehabilitation Of the securities OF all
of his roads prior to the formation Of his
great trans-continenta1 line. A represen-
tative Of one of the leading interests IN
st. Louis and Southwestern, which is one
OF the Gould properties, stated to-day in
Wall street that at the annual meeting
of that system, on October 9Th. Mr.. Could
will submit a proposition to exchange
five per cent. bonds for the entire out
standing preferred stock of the road.
Whether this proposition will come in
the shape of an offer from the Missouri
Pacific system to take over the preferred
stock Of the road and issue five per cent.
bonds, is not known, but it is stated posi-
lively that the bond offer will1be made,
st. Louis and Southwestern shares made
a big advance to-day. It is said that
great many matched orders appeared in
the market, and that there seems to be a
determined effort on the part of inside
of the bond issue gets out
There were many stories in Wall street
to-day as to Mr. Gould's plans, but no
definite details were given out. The story
that received most credence was that Mr..
Gould intends to form new holding COM
pany to take over che securities OF all his
lines. This company is to be known as
the Trans-continental Securities Company
and is to be formed along the lines of the
Northern Securities Company. by which
Mr.. Morgan absorbed and practically
made a unit Of the Great Northern.
Northern Pacific and Burlington. The
plan is to issue bonds and stocks of the
new company IN exchange for the securi-
ties of subsidiary lines These lines are
the Missouri Pacific, Wabash. Western
Maryland, Wheeling, and Lake Erie. st.
Louis and Southwestern. international
and Great Northern, Texas, and Pacific,
Rio Grande, and Western, and the Den
Yer and Rio Grande.
It is said that the Missouri Pacific sys-
tenn will receive all of the preferred stock
of the new company. These lines repre-
sent an enormous capital investment, and
over 30, 600 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 force a way into New York over
the Reading. The story from Baltimore
that traffic rates had been arranged be-
tween the Reading and Western Maryland
has been absolutely denied. All arrange
ments have been broken off
Instead of being friendly, the PennsJ-l-
vania railroad is determined to fight MIR.
Could to the very last ditch. The war
is 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, E. II. Harri-
man, Jacob Fl. Schiff, United States
Senator Clark, Henry c. F'rick, the Moore
Brothers, who control the Rock Island,
and William. Henry Smith. who Jointly
with John D. Rockefeller is the largest
holder of st. Paul stock. Russell Sage
and Kuhn, Loeb and Company are also
with the Gould interests, as are the
Mercantile Trust Company, Equitable Life
Insurance Company, and the National
City Bank
The principal factors in the Pennsyl-
yania combination are A. J. Cassett, Will
liam K Vanderbilt, Clement A Griscom.
of the American Line; j. Pierpont Nor
gan, Marvin IIughitt, Cramps Shipbuild-
ing Company, and the Postal Telegraph
Company, with George F. Baker. First
National Bank. and National Bank Of
Commerce.