The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-02-01
BIG RAILWAY DEALS PENDING
GIGANTIC SCHEME OF PENNSYL-
vANIA AND NEW YORK CENTRAL.
The Gould Interests Are Left Out, and
They VIII Have to Fight for an
Outlet to the Sea- GARD.

States and Germany is so close and the
interests interviewer of such magnitude
that it is small wonder anything looking
to disturbance Of the status quo occa-
sions alarm in the financial world. Very
few people who are fully advised as to
the extent of the connection between the
two countries believed for a moment that
the Venezuelan incident would be allowed
to involve the two countries in any real
complications, yet the bare suggestion of
such an event is disquieting.
There is the closest kind of intimacy be-
tween many OF the large banking institu-
tons Of New York and those of Germany.
Vast sums of German capital find employ
ment in America through the agency of
connections and partnerships in this city.
This is entirely independent of the bust
ness done in the way of adjustment of trade
balances, which, of itself. is immensely
important America exports annually into
Germany products to the value of nearly
$500, 000,0 900, and imports from Germany goods
valued at 100000. In the handling of
these credits and the payment of the
balances an immense amount of capital is
required and the shifting of accounts back
and forth.
There are banks in New York that have
special partners in Berlin, Frankfort,
Leipsic, Amsterdam and other Germanic
and Dutch fiscal centers, whose direct in
terests here are very large. 1t is on this
account that New York banking houses
are able to quietly float immense loans for
corporations without in the slightest dis
turbing the local money market. 1t Is
said that good share of the $50. 100000 bor-
rowed by the Pennsylvania Railroad for
preliminary outlay in the improvements and
extensions in contemplation was supplied
by Berlin and Amsterdam through one con-
Germ. There times when it is necessary
for the preservation of the local quiet to
sell finance bills abroad for stupendous
sums, and this is done on the credit of
comparatively few international banking
houses of the first class. The borrowing
ability Of these institutions was put to a
supreme test on the occasion of the North
ern Pacific corner two years ago. 1t has
been used to a lesser extent several times
since. and is recognized as an easy way to
secure funds and credit when the need is
felt. 1t is said by bankers in position to
know that there is in reality more German
capital in the New York money market
than there is English capital, and that back
of that there are the resources Of the Ger
man connections which can be drawn upon
in case of emergency. The Speyer Bros,
the Seligmans, the Kuhn-Loebs and half a
dozen orher houses 1 might mention are as
strong the continent as they are at
home. One great institution active in Wall
street affairs has long been understood to
command the resources of the Kaiser's own
bankers. 1t Is also generally believed that
the Emperor himself is large holder Of
American securities and that he has in
vestments in New York real estate, either
in the form of property itself or in its un-
DERIVING bonds. The German Emperor is
known to keep in close touch with Ameri-
/ can development, and those who have
| talked with him have been astonished at
the extent and correctness of his informa-
ton. f-
| Kaiser William has the commercial in
stinct well developed He is recognized
! at home and elsewhere as a shrewd inyes-
| tor. 1t may be necessary for him at times
| to arouse the enthusiasm and test the
| patriotism of his people, and in the doing
| to indulge in demonstrations which SAVIOR
| of recklessness and demagogy That Is his
way of playing politics. and from his point
/ of view may be justifable. 1t is observed,
however, that he never allows these flights
| to involve his country in dangerous compli-
| cations with his commercial neighbors.
/ Least of all would he carry his apparent
| vagaries to the point of disrupting rela-
( tions with the United States, a fact well
understood in the financial district-better,
| in fact, than in circles Of high politics in
| Washington and Berlin. 1t Is well, how
ever, that the Venezuelan onense is In the
| process of being relegated to the back
! ground. 1t was an annoyance and tended
| to restrain freedom of action in many direc-
| tons, causing inanciers to delay deals on
| ally to depress and check enterprises. 1t
| was more important really as Wail-street
| factor than most people are willing to
/ concede.
| There is a well-defined belief in the finan-
cial district that deals and combinations
Of highest Importance to the transportation
world and the general public are in process
Of being worked out, and that announce
ments of their completion will soon be
made. There is good reason to believe tina:
the Erie mystery" when revealed, will be
| found to involve a practical conclusion
of the plans for the settlement Of the
Eastern trunk-lne situation, cementine
control of the entire field in the hands OF
the interests centering in New York Cen.
trail and Pennsylvania. The drift has long
been this way, and the steps which are
now believed TO be approaching conclusion
| will be in line with the steady and con-
sistent efforts of the big people for more
tlan nEe years past. lHe uuQeTldkluS has
| been well defined from the beginning
Plans of such magnitude cannot be carried
out in day or year. The campaign was
one of far-embracing scope and the details
of the labor were almost beyond human
| comprehension. The outlines of the grand
plan were easily drawn out, but it tool
infinite toll, patience and directing inteili
| gence of a high order to work out the de-
| tails.
rhe Goulds are not included in the ar
rangements for a settlement of the Eastern
| railroad map. All the mighty influence OF
the tremendous combinations controlling
| the situation is arrayed solidly against the
Gould invasion. The Gould party will have
| to fight for every inch of its way and will
| have to wrest by main strength every adj
vantage ii can gain east of Pittsburg. Tha
| Is becoming palmer hourly. The figh
against the Goulds Is not confined alon.
to the East. Ii Is an active force in tn,
West and Southwest, and, so far as th'
PENNSYLVANIA and Vanderbilt inf1uenc,
| goes will be felt in the combinations fol
a division of the territory west Of the Mis-
sissippi
1t need not be surprising IL distinct.
anti-Gould combination Is made in thu
| Southwest having the cordial support o.
the New York Central and Pennsylvani;
| systems and their connections in the inter
| change OF freight at Chicago, ST. Louis
| Kansas City and other points OF dfstribu
ton of traffic 1t would be very easy To-
I Erie Pennsylvania and Lake Shore to dis
| charge and receive business with tn
Northwest over the Vanderbilt and Hill
| lines and with the Southwest over tn
Rock Island. Atchison and Frisco. LEAVING