Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-09-16
MADE WAR ON GOULD
Ramsey's Effort to Control
Wabash System.
BONDHOLDERS IRATE
WALL STREET INTERESTED IN
TREMENDOUS STRUGGLE.
Earnings Were Used for Improvements
ALI Hands Look Fight
ing Mad.

day made it apparent also that Joseph
Ramsey, jr., president of the Wabash, has
powerful allies in his war against Gould.
At the close of the days operations in
the street the consensus of opinion was
that the Pennsylvania railroad is back of
President Ramsey in his struggle to wrest
control of the Wabash from Gould. Some
of the largest financiers also saw the hand
of Rockefeller in the fight. For long time
Wall street has been aware of the fact
that John d. Rockefeller is hostile to all
the Gould interests.
This feud dates back several years to a
time when George Gould took the bit in bis
teeth in the management of the Wabash
and effected MANY changes that were not
in accord with the views of Rockefeller. He
refused to heed the advice OF the Standard
OH king, and to this sweeping change in
the management of the Wabash is attrib-
uted the falling off in dividends.
/ Rockefeiler's ennlty for Gould was fur
Their increased during the preliminary bat
ties between Gould and the Pennsylvania
railroad. Rockefeller strongly urged the
Gould interests to make peace with the
Pennsylvania, but his pleas went for
naught. 1t was said yesterday In the street
had been led to invest heavily in Wabash
on representations made to him by Jay
Gould, and that If he met further disap-
pontment in these investments somebody
would be made to smoke for it."
Wabash a Storm Center.
President Ramseys call for proxies was
the first real intlmation Wall street got
that new war had begun against Gould.
1t speedily became the feature Of all the
trading. Wabash, both common and pre-
ferred, jumped at the opening from liz to
2 points. and it was apparent that some of
the large interests were buying. heavily.
Part of this trading was obviously for
profits in the movement of the stocks.
This fight against Gould is something of
a poser for Wall street The large financial
interests have long been under the impress
sion that the Goulds were securely in
trenched in control of Wabash as to make
1t impossible for any opposing element to
undertake an active war to GUST them For
the most part the street was unaware that
there was serious break between George
Gould and President Ramsey last spring
and TO this may be attributed the fact that
Ramsey Is soon to retire from the preSi-
dency of the road.
No one has better notion of the affairs
OF the system than has Ramsey, and no
one knows better the Gould strength in it.
According TO statement made yesterday
by John z. Ramsey, son of President Ram
sey, Gould fs In control of Just 40 per cent
OF the capital stock Of the Wabash He
said also that the Rockefeller interests were
heavily interested in the holdings of the
system, and that they would in all proba-
blHty support his father in the latter's eff
forts to GUST Gould from control. He init
ma ted also that other large interests ura-
sumably allied with the PENNSYLVANIA Rail-
road Company, Were backing his father in
the fight.
Support Of Stockholders.
My father has the unqualified support of
some of the large stockholders In the Wa
BASH" said Mr.. Ramsey IF he had not
been assured of this support he would GER
tainly not have undertaken this fight He
has an excellent chance to win in the end.
and. OF course, that will mean a big change
in the conduct of the system
There has been a great deal of dissatis-
iaction among some of the large stock
holders because of the application of rhe
earnings OF the system to improvements
and this was the chief point of differences
between my father and Mr. Gould some
months ago when the breach began. NV
rather naturally came to the conclusion
.nat one or me other of these opposing in
terests must be removed from the control
of the roads.
lie wanted to resign last spring but
pressure was brought to bear on him and he
decided to remain in the office for bnsinosS
reasons until the annual meeting wbioh
takes place at Toledo, Ohio, October 10 On
the result of this meeting and the fight that
VIII go on In the meantime for control of
the Wabash" N' %
wan street was badly Jared by the state
meht In president Ramsey's circular calling
ior proxies that S12,0OO,OO0 had been paid
out or the net earnings of the Wabash 10
carry on Improvements demanded by Could
The stir was chiefly among the holders Of
the debenture 3D. bonds which are entitled
to all surplus earnings up to 8 per cent on
the bonds. For some time the interest has
been suspended, and it now appears that
millions that should have been paid to the
bondholders have been diverted to other
channels.
1t looks now If Gould is due to have the
hight of his life. with Rockefeller and the
Pennsylvania making war on him In The
east and K. H. Hartman training his guns
on him in the west. His efforts to reach
tidewater over the Wabash are making new
enemies every day. and the fact that he has
won in some of the preliminary battles and
has broken into Pittsburg through some of
the Pennsylvania strongest Notifications
has not tended to draw Off any of his enc
mics.
There has never been a truce in the war
of the Pennsylvania against Gould since the
time, some two years ago. when the system
struck out a him by throwing out the
western Union in Pennsylvania BY the
order of President Cassatt 1900 miles of
telegraph poles were cut down in a single
DAY and the Western Union was for the
time seriously crippled.
More Attacks on Gould.
The custer of the Western Union was one
of the war measures adopted by that sys-
70 OF Il,xII