The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-04-23
Observation-Disclosures
BOYCOTT or GOULD INTERESTS
ny u. s. STEEL CORPORATION.
Invasion by George Gould'S Colorado Fuel
and Iron GO. OF the Sieei Corporations
Field Causes Loss 90 Gould Lines,
says the "PittEburg Dispatch"

PITrsBURo April 22.-The Piusburg Die
patch, which always has been known as the
oflcial organ Of the Wabash road at Pits
burg, and particularly the organ Of Joseph
Ramsey, who h retiring as president OF the
Wabash, says to-day in an inspired article
President Joseph Ramsey'S retirement
from the Wabash recalls a startling situa-
ton with respect 70 the PittsbuTg district
Invasion Of the territory Of the United
States Steel Corporation by George j.
Gould with his Colorado Fuel and Iron Com
pany has resulted In such g severe boycott
against the Gould interests that the Wabash
has been denied every pound Of its freight
out OF Pittsburg, and the corporation has
prevented a Wabash connection TO make
effective the tonnage contract left by An
drew Carnegie for contamination by those
who purchased his Carnegie Stee. Company.
"Fruitless efforts to solve this vexatious
problem have been made by President
Ramsey owing TO interference on the part
Of Gould and bis polo friends Discouraged
at the desperate prospect Of making the
Pittsbug terminal profitable without the
corporation tonnage. and with other acts
which have converted friends into enemies,
President Ramsey has decided to retire
and leave others TO combat the situation.
There are no personal differences be-
tween Gould and Ramsey. The wizards
son Is satisfied with the Pittsburg terminal.
He Is not discouraged at It's cost OF t2S,-
10000. His friends, however, have 80
embroiled him that its success is imperled.
Some months ago Mr.. Gould, in order to
widen the field Of the Colorado Fuel and
Iron Company, with the advice Of Col. F. j.
Hearne, formerly Of PittsbuTg, reduced
the rates on The Missouri Pacific and other
Gould lines to the East on iron and steel
articles in order that the Colorado COM
pany might invade territory as far east
as Chicago. This rate applied only on east
bound freight and the Colorado company
at once began flooding territory formerly
held by the United States Steel CorpoTe
tion.
The Steel corporation resented this.
The Anne rican Steel and Wire Company
had a rich trade in wire and wire nails, of
which Col Hearne desired a portion, And
he secured it, owing to the new rates,
formerly sharply divided by the Missis-
sippi warning TO Mr.. Gould was given,
and then traffic managers Of the corpora
ton, through Mr.. heefe OF the Anne Ilcan
Steel and Wire, their chairman, were in
structed by President ". r. Corey 70 dis
continue routing freight over the Gould
sThe American Steel and Wire, Anne rican
Sheet Steel and American Steel Hoop COM
panies at once complied with the order rs,
although the Carne gle Steel Company
and National Tube Company then had
shipments en- route. Up to that time the
Gould lines, including the Wabash, Mis-
sour Pacific, Texas Pacific and Denver
and Rio Grande, had been receiving ship
nlents amounting 10 hundreds OF thou
sands of collars year
a complication over pipe purchased
from other than the National Tube Com
pany, and over locomotives and cars, the
latter entirely ignoring expressed wishes
of the CaTne gle company, se rved only 10
smbitter the corporation officials against
The Gould system. 1t Is declared. by a
Steel CoTpo ration official that President
Ramseg vas powerless to prevent this situa-
ton, WI ich was really created by Intimate
friends OF Mr.. Gould.
The loss Of tonnage that was being
routed over the Gould lines was severe in
itself as heavy consignmeEts Of pipe TO
the Indian Territory, Kansas and Texas
helCs and plate to territory reached by the
Gould lines were being made. But the
worst blow Of all was the continued refusal
Of the Steel corporation officials to permit
the Wabash to make direct connection
with the Union Railroad, the terminal Of
the Carnegie Steel Company, and the Beese-
mer and Lake Erie.
The last important act Mr.. Carnegie
did before he retired from the steel business
was to sign a contract with Mr. Gould and
Mr.. Ramsey TO give the Wabash Railroad
one-fourth Of the Carnegie Steel Company
tonnage in central traffic territory, II il
would build into Pittsburg and make con-
nection with the Union Railroad This
tonnage means anywhere from 1000. 900
TO 1900 900 tor . Of freight year, and, this
enormous traffic assured, was what made
easily possible the underwriting Of the
Pntsburg and Toledo syndicate, which
built what is known as the Wabash Pitts
burg Terminal and Wheeling and Lake
Erie railroads.
president James H. Reed Of the Union
Railroad never designated the point where
the Wabash should make connection to
reach the Carne gle mills. j. p. Morgan
was ezra ged during tho formation Of the
United States Steel Corporation to find
that Mr.. Carnegie had tied such a string
TO his big int rests, and he has constantly
since been inimical TO the ambitious plans
Of Gould and Ramsey 10 reach the Atlantic
6eaboard. Mr.. Ramsey made repeated
efforts 20 gain favorable decision on the
part Of the corporation, and II Is reported
that he even sought the assistance Of John
D Rockefeller in his conference with Mr..
Corey. Sudden and unexplained moves
made by Mr.. Gould's friends, however,
frustrated every attempt, although month
Ago conferences had rea ched such point
thai they promised a solution.
Recently, however, the Colorado Fuel
and Iron situation reached such a strained
position that when notified by Mr.. Ramsey
that he would build spur Of the Wabash
to a connection with the Union Railroad
without waiting for point TO be designated
the corporation officials notified him that
II he insisted upon this program the Car
negie mills would not give a pound Of
freight The situation has since become
even worse, and the Gould lines have car
ried no freight from corporation mills save
that routed by the purchasers Even be-
fore the Wabash was in operation into Pitts
burg the tonnage given TO the Goulds by
Pittsburg and Wheeling mills Of the cor
poration was enormous. The Colorado
Fuel fight has caused tins tonnage 70 shrink
10 practically nothing.
President Ramsey Ia reported to have
become exasy Grated at the thought that
the splendid line he built into Pittsburg
could not get a ton Of corporation freight,
although II possessed an almost invaluable
contract. Every move he made was frus-
trated.
Friends Of Mr.. Gould say that he ia in
Taptures over the prospect OF tonnage
from Pittsburg, but that he is unwilling to
ooncede the Colorado Fuel position. There
IL no doubt In financial circles that he de-
sires 10 force the Steel corporation to buy
the big Colorado proposition and that he
Is playing every card with that end in view