Semi-weekly herald., 1913-12-15
GOULD is DEPOsED AS
RAILROAD KING

unexpected election of representa-
tives of John ID. Rockefeller, the Chi
cago university and the general edu-
cation board, as successors to George
j. Gould, president of the Manhat-
tan railway, and Kingdom Gould, Jay
Gould, F. ]. Gould and Howard Gould
as directors of that company, says
the New York Evening Post. An
nouncement of those changes was
equivalent to saying that the Goulds
were no longer in control of the ele-
waited system. Only those who are
familiar with Wall streets history
for the last twenty-five years under
stood why SO much interest should
be shown in the retirement of the
Goulds from the management of the
Manhattan railway.
In his day Jay Gould was the most
important individual factor in the
country's railway situation. In COM
menting, in January of 1881, on the
developments of the preceding year,
the Financle Chronicle wrote: "All
other transactions were surpassed by
the combinations and purchases of
Mr.. Jay Gould, who controlled at the
end of the year every important
through route west and southwest of
st. Louis except the Atchison and the
Atlantic g. Pacific" Gould died in
1892, leaving an estate which was ap-
praised at total volue of $80,934,581
made up of the bonds and stocks Of
Gould companies" including Mis-
souri, Pacific, Union Pacific, Man
haitian railway, Wabash, Western
Union, St Louis Southwestern and
st. Louis & Iron Mountain. There
was $12,29S,000 worth of Missouri
Pacific stock, $685., 500 of Manhat-
tan and $2O,611 800 of Western Un-
ion. The will said that the trustees
should vote the trusted stock abso-
lutely as a unit and that in case of
a disagreement the judgment of Geo.
j. Gould should be final.
During the first ten years of his
stewardship George j. Gould increas-
ed the value of the Gould estate 25
per cent, SO that at the close of 1902
he was in control of $100,0OO,OO0, OF
its equivalent. 1t was exactly ten
years ago this autumn that Wall
street first began to hear of Gould's
ambitious plan to form the first
transcontinental railroad in the coun-
try by extending the Wabash to the
Atlantic coast through Pittsburg and
the Denver and Rio Grande to the Pa
cific through Southern Pacific's ter
ritory.
But at that time Gould was not on
ly in command of $1O,OOO,O 900, but
he enjoyed the power that went with
the presidency of thirteen railroads,
the Craftsmanship of four others, and
the vice presidency of two additional
lines. He was director of fifty-two
different companies, including the
Chicago & Alton railroad, Burlington,
Missouri Pacific, Manhattan, Western
Maryland, Wheeling & Lake Erie.
Denver & Rio Grande, Oregon Short
Line, Union Pacific and Southern Pa
cific. His other connections included
such institutions as the Equitable
Life, the Bowling Green and the
Equitable Trust companies and the
national board of commerce. The
proposition to build into the heart of !
Pennsylvania and Southern Pacific's |
territory made Wall street gasp, but |
it was felt that man of Gould's fl |
nancial strength and position could
accomplish almost anything.
But Gould's real strength up to |
that time had never been tested; in
fact, before starting to develop his |
transcontinental plans he had never
come out into the open He succeed |
ed, with his enormous resources, in |
extending his system from San Fran
cisco to Baltimore, but the cost in
every way had been underestimated |
The first thing that happened was
the cancellation by the Pennsylvania
railroad of its long working agree
ment with the Western Union. Next
Gould was dropped from the Union
and Southern Pacific and other Har-
riman boards. Then came the panic.
when, because of large floating debts
the Wabash, the Western MARYLAND.
the Wheeling & Lake Erie and the
Wabash-Pittsburg Terminal compan-
les were all forced into the hands of
receivers.
Next came the purchase of West
ern Union by the American Telephone
and Telegraph company. That was
in November of 1909. A year later
the realignment occurred in Missouri
Pacific which resulted in the resigna-
ton of George Gould as president, a
position he had held since 1893. That
same year, 1893, Gould was elected
president of the Manhattan railway.
a position he held until this week.
Thus, although Gould is only 40 years