Omaha daily bee., 1903-05-31

10 AAtAS W - 49,
fact that the London patrolmen receive
ouired the tidewater link in his great trans
continental chain. 1t needed only the West
ern Virginia road and the connection of
J that line with the Western Maryland by a
new line easily constructed across the Poto-
mac valley.
Galveston TO Baltimore.
Almost before the Pennsylvania interests
knew what was being done they found
George Gould in possession of practically a
complete line, which. with the Missouri Pa
cihc and Wabash as it's main trunk, was in
a position to ship freight from Galveston
to Baltimore. and at the same time, by con-
troll OF the Denver & Rio Grande, to die
tate transcontinental freight rates to the
Pennsylvania people. to the Vanderbilts. to
Hill, to Hartman and TO any other person
who chose to mix in the game.
George Gould has bought his railroads al
most o~utright-that is to say, he owns a
controlling interest in each line, and is not
dependent upon the whims or upon the good
nature Of some intangible and easily broken
syndicate. In this way he is practically
impregnable to direct assaults. He cannot
be bought out, and the more the stock of
his different railroads is depressed the bet
ter Il suits him. because he is then enabled
to increase his holding at reduced cost.
Attack on Western Union.
When Gould persuaded the people of
Pittsburg to permit him to dig his way
through the smoke into that city, and when
ne began his building preparations from
Mingc Junction, the Pennsylvania railroad
began to show its teeth. George Gould is
, the heaviest stakeholder in the Western
/ Union Telegraph company, which ran its
) wires over the Pennsylvania railroad right
1 of-way.
. Curiously enough, the contract between
. the telegraph company and the railroad
practically was the only one of its kind
= which the Western Union company knows
8 Of. 1t was an old contract, and required
. the Western Union company to remove its
. poles and wires upon six months notice
. after the expiration of its contract. The re-
lations between the two great corporations
: have been so cordial that the existence of
y this clause in the contract actually had
Z been forgotten. In all other contracts be-
tween the telegraph company and the rail-
= roads there are naturally provisions for the
l. termination of the contract under certain
: conditions, but in no case is the telegraph
T. company actually required to remove its
9 property within a certain specified time.
II WIS n InullcI u II " NiC GIG
!. graph officials, therefore, when a year ago
they we're notified that their contract with
the Pennsylvania company would expire on
q specified day. They took 1t as a matter OF
course, and wrote the usual letter propos-
ing a renewal of the contract on the same
old satisfactory terms. Much to their sur
prise an answer was received from the
70 railroad company that IL did not propose to
&, renew the contract with the Western Union
on any terms, and requiring the telegraph
h company to remove all its property from
n the railroad right-of-way within six
" months.
Gould IL Not Frightened.
III II was a distinct threat from a. ]. Cas-.
" satt to George Gould. II was intended anC
was received as such. Gould declined to b'
~ frightened out of his railroad projects
~ however, and went on building links and
= buying links. His operations were naturally
- hostile to the Pennsylvania, which had a
"a enormous expense purchased control OF thu
Baltimore & Ohio and the Chesapeake 8
~ Ohio.
~ In this extensive purchase the Wander
- bits were important factors. They wer,
~ given a large block of stock in the Penn
sylvanla road on favorable terms and be
came Joint purchasers with the Pennsyl
y vania of the Baltimore & Ohio and Chesa
peake & Ohio systems. The object was, o
course, TO secure a community OF interest
between the eastern trunk lines. so as I
concentrate all eastern trafhc in the Unite
states in the hands of the Vanderbilt an,
PENNSYLVANIA combination.
1t was an amazing prospect. and the on
thing which stood in the way was Georg
Gould. He was much in the way, how
ever, and he had some good men back o
hNr, ton Iohn n ROCLafallar has mad
more money in the Standard oil compan
than he could possibly spend on the CHI
cago university and similar educations
enterprises. He found an outlet for hi
surplus funds in railroad investments. H
Is head over heels into the Gould systeI
in the southwest. The result was this
when the Pennsylvania railroad attacke
Gould II necessarily attacked Rockefelle
and there has been witnessed recently
gigantic battle to death between the Penn
syivania and the Vanderbilts on one sid
and George Gould and the powerful Rock,
fellers on the other.
war on the stock Market.
1t was only natural that the Gould int
ests should hit back at the Pennsylyan
when that road took the extraordinary ST,
not only OF ousting the Western Unic
from its right-of-way, but of actually d
stroying in a ruthless manner the proper
Of the telegraph company. The Pennsy
vania recently voted an additional $500
900 worth OF stock. That was to be offeT,
to other stockholders at an agreed rate
100, although at the time this figure W
proposed the market value OF the sto,
was much greater. This sum OF ST. 900.
was intended to provide for the work
digging the tunnel under the Hudson riv
and building an enormously expensive u
derground terminal in the vicinity
Herald square in New York. The Gou
interests saw their chance and hammer
the life out OF Pennsylvania securiti
until there was a drop from the neighbC
hood OF $50 down TO 100. the price fixed I
the subscription 10 the new issue. II "
a critical time for the Pennsylvania roa