New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-02-06
BIG P. R. R. LOAN,
TO BORROW $4,000 900.
Western Maryland Nay BE Pur-
chased and Peace Made 5cith GouLdS.

ANNSft a. ana II ItAA ~ tUN ANtNh ~ CN'NO'
The PENNSYLVANIA Railroad Company. it was
announced yesterday. has completed arrange
nents to borrow from syndicate Of local bank
erS. headed by Kuhn. Loeb & Co. the sum of
S:y000oO00 The loan has been arranged for the
purpose Of improving the Pennsy lvania lines
west Of Pittsburg. and also. it may be stated
on the authorit yof a member OF the lending
syndicate. for the purpose OF providing funds
for the purchase Of the Western Maryland Rail-
road by the Norfolk and Western, which is
controlled by the Pennsylvania. as a part Of a
plan for the settlement Of the Goud-Pennsyl-
yania differences. The Western Maryland is
controlled by Gould interests. and its president
Joseph Ramsay. jr. lie president Of the Wabash
road.
The money viii he paid over on April !. the
Pennsylvania giving in exchange SJOWteV
eighteen month az per cent notes Of the Penn
sylvania company. secured by collateral and
guaranteed by the Pennsylvania Railroad Com
panv. The notes have been taken at par. less
small commission the net price being probably
90 per cent Il is not the intention Of the syndi-
cate 10 offer any Of the notes for sale TO the
public
Pennsylvania Railroad stock was weak yester-
day. on the runor. subsequently confirmed. OF a
S50OO0o coo loan. and closed at the lowest of the
dav. ll67s q net decline OF rs points. An issue
of S4OOOOO00 Az per cent six-month notes or
the PENNSYLVANIA Railroad Company. running
10 July 1903. was taken up at maturity. being
paid FOR out Of the proceeds Of the new stock
issue.
The statement that the Pennsylvania purposed
uSinr mart Of the new loan for acquiring the
Western Maryland although that statement met
technical denial from Philadelphia, was gen
orally credited I'm Wall Street. Reports have
been increasingly frequent during the last few
| months that a peace was being arranged be
tween the Pennsylvania and Gould interests.
whose warfare. which has been in progress Tor
| nearly two years. has been a constantly as
turbing influence in the stock market One OF
the reports IN circulation yesterday was that the
Pennsylvania after taking over the Western
| Maryland would give the Gould lines favor
| abl. arrangement for aboard traffic.
| The hostility between the Gould and Penn
sylvania interests. as is well known, had its
| origin in the determination OF the Goulds 10
| enter Pittsburg and also 70 extend the wabash
system 20 the Atlantic seaboard. Among the
moves made bv the Goulds were the acquisi-
| ton by the Wabash Of the Wheeling and Lake
Erie. the construction OF the Pittsburg. Carnegie
! and Western as an extension or the Wheeling
| and Lake Erie from Jewett, Ohio. 20 Pittsburg;
| the execution Of a twenty-hve-year contract Tor
| the handling h. the Wabash system OF - per
!
ore and coke tonnage: the purchase by the
| Co,,lds OF the Western Maryland and the West
| VIRGINIA Central and Pi;tsburg and the begin
| ming Of construction of links the completion OF
| which would give the Wabash system a through
line into Baltimore. one 90 the retaliatory meas
! ures Of the Pennsylvania was the exclusion
! from SIS lines Of the Western Union Telegraph
| Company. a Gould corporation. which was fol-
| lowed by the destruction OF much OF the tele-
graph company's property. and resulted in a
! long and bitterly fought litigation.
philadelphia. Fen 5-An official OF The Penn
sylvania Railroad Company said to-day;
Tho PENNSYLVANIA Railroad Company Sc not
gesrsrp nv notes or obligations, nor does II pro-
pose 10 Go SO. me nesoelalloR 1T ~
/ loan alluded 10 in a New YORK olspalch no
| doubt refers TO the arrangements made by the
! Pennsylvania company. which operate the lines
| west OF PittsburE comprising a system OF some
/ Eve thousand miles, and provides Cor its finan-
| rial needs These lines serve a territory where
ne growth OF the steel and like Industries made
! exceptional demands during the last year upon
| The railways for increased facilities and better.
| ments For the purpose OF providing for the
! expenditures already made. and for similar
work be done this year. the company has
| arranged for the loan referred 10, which VIII he
| permanently financed before its maturity. The
money is not 10 be used 10 purchase or control
/ any properties syndicates connected with
other railway systems
II was said here tonight that portions OF tn,
Pe,nsvlvania S50OOoO00 loan are being Of
fered in this city by Kuhn Loeb & Co. Of
New-York in blocks Of $4,000. and thai
similar offers are being made In Boston and
other financial centres. AS the amounts arr
| larger than any single financial institution Il
| likely 20 be willing oassume. the formation
OF st,b-svndicates in the smaller financial centres
VIII probably ollow.
rsy TELEGRAPH TO THE tribunal
Baltimore Feb. 5-F s. Landstreet, vice
| president and general manager OF Gould's West
! ern MARYLAND Railroad. the proposed wabash
| extension 10 this city. tonight pronounced al
preposterious the report that there a deal OF
for the acquisition OF the Western Maryland b.
the Pennsylvania Mr.. Landstreet further statet
that he saw Edwin Gould in New-York to-daI
and no reference was made to any such deal
We are going straight ahead with our work.
he continued, and am sure that no plan O
selling the Western Maryland 90 the Pennsyl
: vania was ever contemplated"
Vyinslow s. Pierce. chairman OF the board o
directors Of the Western Maryland. said 10
night that there positively no foundation
for the ruuors that the Western Maryland hat
been purchased by the Pennsylvania Railroad
Company. He said:
= I have never discussed these rumors. and sc
no occasion 20 do so now. There has been N
I | change in our plans and purposes. There vii
: | Ia no aanarfura from the platfOrfn upon whfc