The San Francisco call., 1904-03-18
I Graat Railroad Fight
BY EARL D. BERRY.

New York Ilfnes-1
lCor,right. 1904 by Joseph B. Bowles)
George J. Gould has been trying for
the last FIVE years to get into Pittsburg
with his wabash line. In this en-
Geavor he has had the outspoken and
determined opposition Of the Penn
sylvania Railroad and the silent oppo-
sition of the Vanderbilts. From a
freight traffic point OF view the Pitts
burg region is counted by railroad
men as an unfailing bonanza. The
vast quantities of ore, coke, coal
steel and various manufactured prod
ucts handled at Pittsburg have over
taxed the railroad facilities in this
territory for several years past, vet all
attempts TO build new railroads in this
rich field have been stubbOrnly re-
sisted by powerful influences. The
Pennsylvania lines and the Wander
bilts' Piusburg and Lake Erie road
are the only two railroads that have
access TO the great Homestead, Brad
dock and the Jones and Laughlin steel
plants.
Andrew Carnegie. angered at what
he termed the selfish and uncOncilia-
tory policy Of the dominant railway
interests in the Pittsburg region, had
plans prepared for the construction of
an independent line frpm Pittsburg to
p point on Lake Erie. His insistence
upon the carrying out of this project
was one Of the causes that led TO the
formation Of the great United States
Steel Corporation. Certain Wall street
interests became alarmed at Mr. Car
m~~ie's defiant and aggressive attitude
md J. Pierpont Morgan was appealed
10 TO avert TIE threatened onslaught
upon railroad harmony. Mr.. Morgan
eliminated Carnegie as a factor in
traffic matters by forming the steel
trust. but not before the great iron
r--ster.. as the head Of the Carnegie
steel plant. had made a contract with
George ]. Gould providing for the
turning over TO the Wabash Railroad
Of several millions of tons of freight
annually as soon as the Wabash lines
could effect an entrance into Pitts
burg territory
The time limit Of this Carnegie Gould
contract has not yet expired, but the
Wabash Railroad is not in position to
avail itself Of the coveted traffic priv
iIeges. Through the purchase and ex-
tension Of the Wheeling and Lake Erie
Railroad the Goulds have gained an
entrance into Pittsburg. but as yet the
pple of promise is afar off. NOtwith-
standing the spirited opposition Of the
Pennsylvania Railroad the Wabash
mana cement has built a bridge across
the MonOngaheIa River and established
a terminal station in Pittsburg. But
this terminal is suitable only for pas
senger traffic and is cut off from the
steel plants by the refusal of the Pitts
burg municipal authorities to grant tbs
required right Of way through the city
10 a connection with a small road that
taps the steel plants. The Goulds have
spent about $40. 600 600 thus far to get
into Pittsburg and establish through
line eastward TO Baltimore. but unit
they can loosen the grip Of the Penn
sylvania Railroad on the Pittsbure
Council they stand little chance OF
getting the rich slice Of freight traffic
that the Carnegie contract holds up tC
view.
Much that is untrue and absurd has
been written about the warfare be-
tween the Gould and Carnegie inter
ests. Prominence has been given to tbs
rumors that the ROckefellers have al
lied themselves with the Goulds TO IN
timidate the Pennsylvania Railroad
mana agement and if necessary TO force
A J. Cassatt out Of the control of thai
great system. Actual facts. known 4
most well-informed railroad men, prove
the absolute falsity Of these rumors
The Rockefellers. like other possessor.
Of surplus funds. have invested in
Pennsylvania Railroad stock. but in z
comparatively small way. There are
now about 46 600 individual stockhold.
ers Of the Pennsylvania Railroad Com.
psny-sn increase of nearly 1900 with
in one year This remarkable diffusion
of Pennsylvania Railroad shares does
not indicate that any effort has beer
made to concentrate the holdings G.
these securities in the interests Of In,
Rockefellers, the Goulds or any Other
particular interest A confidential rep.
resentative of John ID. Rockefeller told
he writer ot this article n few DAYS
ago that the Rockefeller interests had
70 more ioea Of seeking control Of the
Pennsylvania Railroad than they hac
cf buying Trinity Church in New York
George J. Gould said just before ieav.
ing New York FOR California: 1T i
true that we have met with opposition
in our efforts to obtain traffic faclitie:
- the Wabash system in Pittsburg
bat we hope 10 overcome all obstacle.
and establish a thorough line to tn.
Atlantic Coast. We do not expect 4
buy any part OF the Pennsylvania Rail
road system in order to accomplish oui
purpose. There certainly has been NJ
personal enmity engendered between
President Cassatt and myself"
Experienced railroad men in the Eas
believe that Mr.. Gould viii eventual,
carry out his plan of establishing Z
through line 10 Baltimore, but they
look 70 see important concessions mad,
to the Pennsylvania Railroad. Th,
Cassatt administration was never NOR,
strongly intrenched than il is now
Enough proxies for the annual meeting
Of stockholders TO be held early il
March have already beenf sent in (,
show that there is practically no oppo
sitjon to the cassatt management Mr.