The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-11-17
A BATTLE
OF GIANTS
The Alleged Cause Of the Pres
ent Trouble in the Stock
Market.
GOULD VERSUS ROCKEFELLER
Truth of Statement Made Some
Months Ago by Richmond Man
Apparently Established.

Several months ago Major JaIne1 H.
Dooley, of Richmond. said through the
public print that the trouble In the stock
market was due In large degree to war
which had been started between Rocke-
Teller and Gould on the one side ana A.
j. Cassatt, president of the Pennsylva-
MIA Railroad, on the other. The New YORK
World of yesterday prints conspicuously
a story, which, If true. goes far to show
that there was much in Major Dooleys
contention.
The World says that during the past
several years the Standard OIL Company
has been investing It's enormous earning
In railroad properties, and now controls
number Of the leading railroads Of the
West and East. These include the 81.
Paul, the Northern PACING. the New York.
New Haven and Hartford. the Delaware
and Lackawanna and Missouri Kansas
ana Texas. An alliance was mace between
Rockefeller and Gould by which the
Gould roads. including the missouri "a
cific and the Wabash systems. were
brought into harmonious relations with
the Standard OIL roads. Mr.. Gould ac-
ouired the Western Maryland road, which
gavo him an entrance into Baltimore,
and at the Same time Gould and Rookie.
Teller bought the West Virginia Central
and the pittsburg Railroad, which Is now
being extended from Cherry Run, w. Va,
to Cumberland. Nd, to connect with the
Western Maryland. When this gar. OF
sixty-f1ve miles is built. and the line
from Steubcnvlle. across the Ohio River
into Pittsburg. is finished next April.
the Rockefeller interests VIII con-
ing from Baltimore westward across the
Continent to q point within 800 miles OF
San Francisco.
CAUSE OF TROUBLE.
The trouble with the Pennsylvania peo-
pie began when Gould effected an en-
trance into Plttsburg. About that time
the contract between the Pennsylvania
Railroad and the Western Union Tele-
graph Company expired. and President
Cassatt refused to renew the contract
with tho Western Union because 1t was
Gould property. Instead he made q con-
tract with the Postal Telegraph Company.
The Western Union sued out an injunc-'
ton against the Pennsylvania Company,
but the injunction was dissolved. and
Immediately President Cassatt sent out
wreckng crews, and in thirty-six hours
nearly three thousands poles of the west
ern Union were chopped down. involving
a loss to the telegraph company OF some
thing like $5,O000O0.
According to the Worlds story, Rock
efeller and Gould swore eternal yenge-
ance against Cassatt. and determined to
destroy him., Their plan Of campaign
was to attack the stocks OF the Penn
sylvan1a Company, force them down, ana
create such dissatisfaction among the
stockholders as to bring about Mr.. Cas-
salts removal as president OF that COM
pany. Whether or not that be true, 1t is
a fact that Pennsylvania stock has fallen
from ITO to III. and recently enormous
blocks OF the stock have come out at the
low figure. Pennsylvania, which is now on
a six per cent. basis. is selling for less than
n faI a when II
a five per cent. basis. The lowest price
for Pennsylvania in 1898. when 1t was only
paying five per. cent, was 10, and 1t sold
that year as high MS 12s.
RUMORS WE'RE FACTS.
1t is said that much of this selling has
come from abroad, and that Rockefeller
and Gould are responsible for It. The
World says that secret agents OF Rock
efeller and Gould were sent to London
with instructions to undermine confidence
In the Pennsylvania management, and,
THEREFORE. in Its shares. At first these
stories received little attention, but the
World proceeds:
"The conservative English investors
finally began to doubt. They met and dis
cussed the subject with the three Ameri-
cans. Mere rumors began to look like
facts, They learned the details OF the
war that had been brought on between
the Pennsylvania on one side and the
Gould and Rockefeller interests on the
other. They were informed of the vast
engineering projects that were either In
process OF development or In contempla-
ton under the directing hand of President
Cassatt.
They began to say that they did not
regard President Cassatt as safe man.
basing this opinion on the fact that tho
Western Union property had been devas-
tated by his express order. They further
criticised his expenditure of such vast
sums in the engineering improvements
OF the system, These investors told the
americans that President Cassatt must
be engineering mad Many of these
same men were heavily interested In
Western Union. and naturally this group
of capitalists was easily enlisted against
the present management of the Pennsyl-
| Yania,
For all this there was but one inevi-
| table result. The English holdings would
be thrown on the market, and that was
| the mission that took the representatives
| OF the Rockefeller and Gould interests
across the Atlantic. Before many days
| had passed Wall Street brokers began
to set selling orders from London. and
| these orders were all for Pennsylvania
| stock. The first few orders caused not
even a furry, but when they began COM
| Ing In in tens of thousands OF shares the
| alarm soon spread.
Selling orders coming from English
men who were regarded as the most con-
sentative OF investors. startled all of Wall
| Street There were hurried conferences.
| In which President Cassatt was aaken for
| some clue to explain tho London orders
| for the sale OF tho stock In the Pennsyl-
yania. He admitted that no could not ac-
count for the flood. and from that mo-
ment there WAS no stopping the break In
the securities until the English holders
| had unloadcd."
FAILED TO BORROW.
| About that time Nr. CaSsatt went on
| the market and tried TO borrow $30,vo...-
| for the Pennsylvania Company. but failed.
Mr., Cassatt himself Is large holder of
| Pennsylvania stock, and according to this
story he purchased tremendous block
OF the new Issue at 3li1 per share. Other
officers OF tbs company were also heavy
purchasers. and their losses have been
terrific Some tlme ago 1t began to be-
rumored that Mr.. Cassatt would be re-
moved. and every now and then tho ru-
NOR is revived, 1t is now said that Mr..
Cassatt has recently offered for sale his
fne residence in Philadelphia at about
| one half Its cost,