Evening star. [volume] (Washington, D.C.) 1854-1972, 1902-07-25


for supremacy and struggle for the for
nation of ns-continental systems, there
can be little doubt.
The fight between the Pennsylvania peo-
pie and the George Gould interests is dwelt
on at length ir this connection. The story
is told in detail that Gould blocked the New
York tunnel and passenger station plans of
the PENNSYLVANIA through manipulating the
board of aldermen of that city; that in re-
taliation the Pennsylvania brushed up it's
iong-formed plan of buying the control of
the Atchison system, thus forming what
would be the most gigantic railway system
of the whole world.
Rock Island Reorganization.
Another story which seems to have foun-
dation is that the Rock Island road will
early next week announce a most compre-
hensve scheme of financial reorganization.
Semi official statements of this plan make
it embrace the formation of a new COM
pany, capitalized at four hundred million
dollars, and effecting a consolidation of the
various properties now known to be sub
sidiary lines of the Rock Island system. In
effect. it is stated, the new company would
be a holding company, after the plan of the
Northern Securities Company, and which
would include under one management the
Burlington, Cedar Rapids and Northern,
the Choctaw, Oklahoma and Gulf, the Chi
cago Rock Island and Gulf and the pro-
posed lines between Chicago and st. Louis
and Kansas City. On top of this came the
rumor that proposition had been made
to sell the Atchison system to this new
Rock Island combination.
The Rock Island road is dominated by
the Moore Brothers of Chicago and New
York; d. G.. Reid former president of the
American Tin Plate Company, and w. b.
Leeds, who was a few months ago chosen
president of the road. Such combna-
ton as joining AtchisOn and Rock Island
would also be the most stuDendous under
taking in railroad financering ever thought
n
Magnitude.
Pennsylvania Plans.
1t is known, however, that the Pennsyl-
vania management has for at least two
years been quietly planning the acquisition
of the Atchison system. The Pennsylvania,
now a powerful factor in American rail-
road politics, would in such an event
hold the master hand in both east and
west, and would have the only absolutely
transcontinental line entirely under one
arrangement. The AtchiSon road taps the
Gould territory, and such a move would
naturally be opposed most vigorously by
the Goulds.
As bearing on this phase of the situation
the unexpected refusal of the New York al
dermen to permit the PENNSYLVANIA to con-
struct a tunnel under that city is construed
only one way by financial men. The OBJ
jections advanced by the aldermen seemed
trivial, and those who looked behind the
OF jections could only see in the refusal the
manipulation of Gould
A few weeks ago the tunnel plan seemed
to be a matter of course. There was no
serious talk of opposition. The improve
ment carried with IT the expenditure of
more than $50OOO.O0, and what appeared
to be an almost inestimable traffic advan-
tage to New York city. Brooklyn and Long
Island. All the difficulties seemed to have
been brushed away, and property for ire
mendous station in the heart of the metrop-
oils had been acquired. Besides this, plans
for enormous wharf facilities at the far
end of Long Island were being arranged for
and passengers We're at last to be able to
reach New York from the south and west
without the Inconvenience of the ferry
boat.
Fight With Gould.
Then the fight with Gould, which had
been long in the air, was brought to a head.
An advantage for Gould is said to have
been scored also in the postponement of the
legislation for a union terminal in this
city. While the Gould people might not
have had any direct connection with this
postponement, it is said that it gives them
opportunity to work against the interests
of the Pennsylvania before the bill is
passed
The immediate cause of the contention
between the Pennsylvania and Gould peo-
pie at this time is said to be the infringe
ment on Pennsylvania territory by the
Gould people in the purchase of the West
ern Maryland road, and the entrance into
Pittsburg of the Wabash lines.
The first retaliation of the Pennsylvania
was the election of the Western Union Tel
egraph Company from the line of the road
and the installation of the Postal Telegraph
Company. Next followed the adverse re-
port of the board of aldermen on the New
York proposition of the Pennsylvania
Since that action it has been generally pre-
dicted that the Pennsylvania would even
tually get what it is after in New York, as
ii has not by any means abandoned it's eff
forts in this direction.
Another feature in the combat is the pho
nominal rise in the price of Atchison. Large
blocks of the stock ire being bought and the
price has advanced more than ten points
within the past few weeks. This system
embraces over 5000 miles of track, stretch
ing from Chicago and Kansas City to Cal
weston, Tex. and westward to Los Angeles
and San Francisco. 1t taps Denver and u
hundred towns in the southwest, which is
generally conceded to be the home of the
Gould roads. Joined with the Pennsylvania
it would complete a transcontinental trunk
line of 25,O00 miles of track. 1t would
have terminals in the great cities Of the
east and be impregnable in Chicago ST.
Louis. Kansas City and Denver, and would
be the only rival to the Southern Pacific
lines into San Francisco. The capital of
the Atchison road is slO2. 100000 in common
stock and s114,o00.o00 in preferred
What would seem to lend additional col Or
to the Pennsylvania -Atchison combination
is the holdings of E. ]. Berwind who is
declared to be Pennsylvania man. and at
the same time the largest individual holder
| of Atchison stock, having, ii is said, SO, nOO
| shares of it. The most Of the Atchison
securities are held in small quantities,
which makes the Berwind block of stock a
most potent factor in the SAY So regard
| ing Atchison policies. and gives the Penn
sylvania decided advantage if its desires
| are as stated, to control the Atchison
| system.
AT present the Pennsylvania does not
! compete in Gould territory, but Gould has
| made the first step toward an encroach-
ment In what for years has been considered
! the Pennsylvania field.
Merger in the South.
| Rumor and prices fit together to make UP
another most interesting railroad merger in
the south. The story comes from New
York that Mr.. J. Pierpont Morgan has a
scheme to merge all Of the southern roads
into community of Interest understand
| ing. In order to accomplish this 1t will be