The Carbon advocate. [volume] (Lehighton, Pa.) 1872-1924, 1879-05-17

An Important Rallroad Lease,
The following circular, issued Wednesda!
evening to station agents and other employ
ees of the Philadelphia and Reading Rail
road Company, conveys information Of az
important lease Of property which viii
greatly extend the lines and connections o
the company.
PaILAuELrHIA AND READING r. r. Co.,
Office 227 South Fourth street, Philadelphia
May IA, 7s.-Circular.-The Philadelphia
and Reading Railroad Company this day
takes possession as lessoes Of the railroads,
rolling stock, real estate, property, plant and
traffic of the North Pennsylvania Railroad
Company and the Delaware and Bound Brook
Railroad Company.
The General Manager, Chief Engineer,
General Freight Agent, Treasurer, and Comp
trollcr will at once assume charge Of such
portions and details Of the property and trafTic
of the said two Companles as pertain to their
respective departments.
BY order OF the Board Of Managers.
FRANKLIN b. GowEN, President.
In compliance with the above order the
Philadelphia and Reading Railroad Com
pany took possession of the railroads Of the
North Pennsylvania Railroad Company
and the Delaware and Bound Brook Rail-
road Company, under leases for nine hun
dred and ninety years. We are informed,
says the Philadelphia Ledger, by the officers
of the Philadelphia and Reading Railroad
Company that the principal object in leas-
ing these lines was 10 secure an independ-
ent outlet for Goals by rail to the waters of
New York Bay. The coal tonnage of the
Reading Company destined for the waters
of New York is from one million to one mil
lion and half Of tons, and with proper
facilities for its transportation and deli
very, the volume of this traffic is, of course
capable of great expansion in the future.
With the new line in connection with the
Central Railroad of New Jersey, the Read
ing Railroad Company will, in common with
the other principal tranporters and miners
of coal, have its own line into New York
and be no longer shut out Of the market
actual cash cost to the Reading Company
for moving coal from Philadelphia to New
York is IS cents per ton; but by the new
railroad and combinations Of the present
rail route it can readily be done for so cents
per ton, which will. amount to cash saw
ing of several hundred thousand dollars a
year to the Company. We understand that
it is the intention of the Reading Company
to make its Ninth and Green street station
the Philadelphia terminus of the leased
lines, and it it is expected that the increased
local passenger traffic to be secured by the
change of station will add largely to the
receipts of both roads. The terms of the
leases provide for annual rentals, payable
quarterly, sufficient in amount to pay the
interest on the obligations of each of the
two leased companies, and to give to the
shareholders of each dividends of six per
cent for the first two years, seven per cent.
for the next two years, and eight per cent for
all subsequent years. 1t is expected that
these rentals will be about 100000 per an
mum more than the present traffic would
justify; but it is believed that the change
of terminus will at once add to the receipts
Of the line very much more than the above
deficiency, and thus practically give to the
Reading Railroad an outlet to New York for
coal, without any additional cost whatever,
except that of the trains engaged in hauling
it, the wear and tear of roadway, and the
moderate trackage payment to be made to
the Central Railroad of New Jersey for the
use of about twenty-five miles of its line,
leaving the large amount of saving per an
mum on coal transportation to the credit of
the Reading Railroad Company as its profit
on the transportation. When we take into
consideration the large deficits annually
paid by some Of our greatest companies as
the result of the traffic upon the lines they
have either built or leased in order to get
terminal outlet in New York, il will be
considered greatly to the benefit of the Read
ing Railroad Company that it has been able
to accomplish the same end, not only with
out loss, but with the strongest probability of
actual gain.