The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1911-11-17
GOULD SHUTS
THE FRISCO OUT
OFNEWORLEANS
BREAKS AGREEMENT AND THE
FRISCO is NOW LEFT WITH NO
WAY OF GETTING OUT OF
MEMPHIS, AND WILL HAVE TO
BUILD TO THE GULF.

That there will be more railroads
projected to the gulf coast, and that
at no late date, is certain now that
the Missouri Pacific and other Gould
railroads have broken their agreement
with the Frisco system, shutting the
latter out of New Orleans completely.
The Frisco can now get no further
than Memphis, though it recently pur-
chased the New Orleans, Mobile &
Chicago. and can get to the gulf by
this means by building some connect
ing links. The following New York
special tells of the break between the
two railroads:
Wall street yesterday heard rum
bliugs of discord between the camps
of the Missouri Pacific and Frisco
railroad systems, and spent the after
noon keenly interested in watching
turn in the relations between those
hitherto friendly roads, which strained
them almost to the wrecking point.
This was the result of a notice sent
to the Frisco Offices yesterday by the
Texas and Pacific, one of the Missouri
Pacific lines, stating that it could not
live up to the terms of the recently
announced ninety year traffic agree
nent, by which the Frisco was to en-
ter New Orleans over the Iron Noun
tain tracks.
OmciaIs in the Frisco offices were
thunderstruck on receipt of the notice,
which practically bottles up the Fris-
co at Memphis, deprives it of a 800
mile line to New Orleans and the ex-
ira tonnage from the Iron Mountain
and Texas and Pacific lines. The
Frisco interests were all the more in
censed since they had originally in
tended to build their own line to New
Orleans, but had entered into the
traffic agreement with the Goulds at
the persuasion of their bankers. who
n
rivalry by the construction of parallel
and competing railways.
News of the event quickly Travelled
through the Wall street district, and
caused a great deal of gossip in bank
ing circles, where it was argued that
either Mr.. Gould had changed his mind
about the contract, or that there must
be some truth in the plea of the Texas
and Pacific railroad that it could not
raise the funds necessary for COM
plvi7~ nth the terms Of the contra ct
1T looks as if Mr.. Gould has put
one over on the Frisco said one
banker. irrevently.
re A.issoul1 Pacific-Frisco con-
tracts were signed, sealed-but not
delivered" observed another.
Following the notification, confer
ence was arranged between Benjamin
F. Yoakum, chairman of the Frisco
and George Gould, who is chairman Of
of the tangle could be arrived at, how
ever, but it is believed that other con-
ferences which will be held between
THEFT financiers viii lead to some
adjustment of the trouble.
It is hoped also that James Speyer
who is the banker for the Frisco and
also 70 the Missouri Pacific, win LEND
his aid in the interest of peace.
1t was formally announced at the
end of last May, after a meeting o.
directors of the Gould and Yoakun
systems, that an agreement had beer
entered into from which both HOPED
to benefit greatly.
For Ninety Nine Years.
The Frisco at Memphis was to have
use of the tracks of the Missouri Pa
cific subsidiaries, the st. Louis IroI
Mountain and Southern to Red Rive
and the Texas and Pacific from ReC
River to Baton Rouge. It was stipu
lated that the traffic agreement wal
to run for ninety years.
1t was pointed out that the Frisco
would have the opportunity of hand
ling the business of the Iron Mountail
for all the territory north of Memphis
and west of the Mississippi river. ant
that the Texas and Pacific would ais
serve as a feeder to the road. Tn
Frisco had heretofore been handi
capped because of it's short haul.
The traffic agreement, 1t was stated
obviated the necessity of the Frisc
building its own line, plans for which
had been considered.
The prospective method of arbitra
ton by means of new agreement t
supplaHt the one formerly announce
several months ago has found scan
favor in the eyes of the Frisco inter
ests. It was evident from the wa