The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-02-15
BANKER OLEws' VIEWS.
The Financial Outlook as Seen From
Wall Street.

w all SLr6oE.
| NEW York, Feb. 13.-During the past
week, the whole course of business at the
stock exchange has undergone a change and
been disturbed by extraordinary develop
ments in connection with the coal roads
At first, indefinite rumOrs came from Phila-
delphia and other sources Of an impending
great "dealn between some Of the leading
anthracite corporations; but, as there was
at the time large outstanding ''short" in
terest on these same properties, the reports
were construed as merely designed for
! transient speculative effect That being the
view taken Of the situation and the prices
of these stocks having advanced rapidly
notwithstanding, the market became appre-
hensive OF a burst of some great combi-
nation operation, and most stocks outside
the coalers were virtually neglected.
On Wednesday the fact was authorita-
lively acknowledged that an important deal
had been already consummated as between
the Reading, the Central of New Jersey and
the Lehigh Valley Railroad companies, cal
culated TO have important future bearings
| upon those companies, If not upon the en-
! tire production and distribution of anthra-
cite. The purpose Of the arrangement is to
| place the Lehigh Valley and the Central Of
New Jersey under the direct control of
Reading not through a lease, which would
be illegal in the states through which the
roads run, but through a trust arrange
ment which it is assumed will hold good in
law. Inc plan is very much the same as
that under which the Chicago Gas Com
pany controls the several corporations of
which it is composed A majority Of the
stock Of Lehigh Valley and Jersey Central
is placed 10 escro in the hands of trustee
and in behalf Of Reading, and the latter
company places in the custody OF said trus-
So e. .
curities, to insure the fulillmeDt of the en-
Ragements undertaken by Reading toward
the two other companies, Reading guaran-
tees dividends upon the stock of the Lehieh
Valley at the rate OF per cent. until July
/, 1892; at per cent. from that date until
July ], 1898. and at per cent. from and
after that date. After July 1, 1894, per
cent is guaranteed, and any surplus above
that Is TO be divided equally between Read
ing aud Lshigh Valley until 10 per cent. is
paid to the latter, when the Reading will
take all further surplus. Reading guaran-
tees per cent. henceforth on New Jersey
Central stock. and divides equally any sur
plus above that amount with the latter
company. The directors Of the two minor
roads will be given full representation In
the directorate Of Reading.
This combination will cover fully 60 per
cent. of the present production of anthra-
cite coal. To guard against the possibility
or this majority In production being at
some future time lost, it is understood
that the friends of this transaction have
procured a controlling interest in Delaware.
Lackawanna and Western, so as to secure
the more certainly the harmonious co>opera-
ton Of that company for the objects con-
templated in the analgamstion. The har-
monious cooperation of these four COM
panies will control Is per cent. of the entire
output OF anthracite. This arrangement
covers a share and bond capital aggregat-
ing, for the three combined companies.
1852, 100000, and must, therefore be ranked
among the most important railroad con-
solicitations accomplished in our railroad his
tory.
The professed object of this great IDEAL"
is to produce better harmony among the
producers and carriers of anthracite, to
economic in the methods of its distribution
and to obtain better control over It's prices.
I The means seem to be construed as a short
and easy way to the eud. Probably there
| is little doubt that the first results will be
satisfactory, even highly so, to the owners
OF the properties. But it is not to be over
| looked that the consolidation Is an expert
ment, and that its outworkings must en-
counter problems new to our industrial ex-
perience and the solution of which cannot
| now be foreseen. In its principle though
not in its form, the compact is virtually the
have been formed, and, with one or two
exceptions, our experience of those organ
| lzations has not been such as to encourage
sanguine hopes of their permanency.
| Within the past month two of them have
| broken I'D, partly from disagreements
among their members, but principally be-
| cause they have failed to insure the control
for which they were organized. The public
| will regard this new amalgamatlon Of in
terests as a long step in the direction of a
monopoly of the anthracite TRADE, and GER
tainly not without some primd fdcie show
| of reason. How that ordinarily dangerous
| power will. in this case, be used remains to
! be seen. 1t can hardly fail to be viewed
with dstrusS by ali classes OF the commu-
nifty, for it holds threat over every CON
sumer Of fuel, from the great transporta-
ton and manufacturing corporations
| to the humolest cottaRe- Mora
over, the spread OF these great concentra-
tons OF capital is steadily building IN a
hostile public opinion which may some day
assert itself in legislation with overwhelm-
ing effect; and the courts are accommodating
an imposing mass of decisions against com
binatioDs whose effect is to impair the free
working Of the law of competition There
Is no saying what may be the ultimate out
come Of these self-protective tendencies of
public opinion; aud, for that reason. it is
impossible to judge how far the permanent
| value OF the securities concerned in this
amalgamation may be affected by this sig
nifcant achievement.
AS to the immediate effect, there is no
| room for a second opinion. After its eau
| ton pending the mere rumor stage of the
negotiation, Wall street rushed into wild
excitement over the accomplished fact. On
| Thursday, following the previous advances
of 10 TO 10 points on the securities directly
! concerned. those stocks further rose from 5
to 10 points, and minor but yet large adj
vances were made upon every stock that
has the remotest connection with the coal
traffic. Other stocks generally have SYM
| pathlzed with the coalers to the exteat of
being hrmer, but without any conspicuous
advances. What the latter effects of this
state of things on the general market NAV
be IL is not easy TO foreshadow. The first
thing in order is n settling down of the
excitement and imitation on the "coalers -
| which Will involve a great deal of realizing
tunity for the bears There has been
some disposition, however, to extend buying
into other stocks, and at the moment the
feeling is developing in the direction of a
| generally stronger market. The Reading
excitement will probably be found to have
left behind a keener speculative feeling
among the general run of operators aud a
! disposition among capitalists to try their
hands at some other like expedients for sud-
denly and largely advancing the value of
their properties. 1t will have been demons
strated that Wall street, in spite of its late
conservative mood, is still susceptible of
great excitements and quickly responsive to