The Wilmington daily Republican. (Wilmington, Del.) 1890-1902, 1892-02-13
Director cassatt,s Views.

PHILADELPHIA, Feb. 13.-Mr. A. J.
Cassatt, a director of the Pennsylvania
Railroad company, expresses the opinion
that the great combination formed by
the Reading railroad cannot stand. In
an interview he said:
"Well, if you want my candid opin-
ion, think this is the most audacious
and most impudent defiance of the law
and the constitution of the state that
has ever been attempted in Pennsyl-
vania- 1t is not possible that the people
VINO have made this gigantic combina-
tion can have forgotten the result of the
litigation growing out of the proposed
purchase by the Pennsylvania Railroad
company of the South Penn road and
the Beech Creek road some years ago.
In this case the Bedford and Bridgeport
railroad, corporation controlled by the
Pennsylvania railroad, was used as the
medium for the purchase, but as soon
as the intention became known the at
torney general of the state, under the
direction OF the governor, interposed
and applied to the courts for an in
junction restraining the Bedford and
Bridgeport Railroad company from con-
summating the purchase, setting up
that provision of the constitution of the
state which prohibits any railroad cor
Et
any way acquiring control of a COM
peting line. A lot of litigation ensued,
with the result that the state won at
every point.
A Defiance of Law.
SNOW what do we see here7 Why,
FIRST, that the Lehigh Valley Railroad
company, q company that competes at a
hundred different points and in thou
sand different ways with the Reading, is
seRsed to that company; second, that the
Central Railroad of New Jersey, whose
lines run parallel with and in sight Of
the Lehigh Valley from Philadelphia to
Wilkesbarre, is leased to little New
Jersey corporation created by the Read
ing Railroad company, and now owned
and controlled Dy that company, unless
she control has been constructively
parted with for the purpose of giving
some color Of legality to the lease.
with this plain statement of the case,
can any more fragrant violation of the
Saw of the state be conceived? Here is
an attempt to create monopoly of
almost the entire anthracite coal output
of the state, and the entire output, in
tact, excepting the very small part
which is controlled by the Pennsylvania
railroad. The magnitude of this enor-
NOUS combination will be understood
when tell you that the anthracite coal
production amounts to about 40 900 00C
tons per annum, representing a money
value at the markets Of over $3.50, 900, ,00l
annually"
Asked if the Pennsylvania company
would take action in case the officials
did not, Mr.. Cassatt said:
10 suppose so would be to suspect
that Governor Pattison would fail in
his plain duty. and l am not willing tt
suppose anything of the kind"
keading oficials Not Alarmed.
President Mcleod, however, takes d
different view. He says he has no feal
OF state interference, that the combina
tion is strictly legal, and that ii will
stand, Another official of the Reading
Tallroad sad: You can rest assured
that all the legal points were CAREFUL,
considered before negotiations were be.
gun, and We had the best legal advice
obtainable, and there is not single
point that can be brought against the
GomDination.o
The report that Attorney General
Hensel intends to go into court and at.
tempt to prevent the consummation OF
the coal combination was discussed in
financial circles, but the opinion was
generally expressed that no legal OBJ
staclea could be placed IN the way of the
combination.
A number of railroad men who are
heavily interested in the roads entering
into the combination said that it was d
legal one, and that the attorney general
could not possibly upset it.
The talk of legal complications has
had Its effect on Reading stock, which
declined sharply.