The Goodland republic. [volume] (Goodland, Kan.) 1891-1907, 1892-02-19
THE OUTPUT UNDER ONE CONTROL.
The RcadIng Railroad Company Leasol
Two other Coal Lines and EnteIs
Into Contract with tho Lacka-
wanna--No Increase in Prlce
to Consumers Probable
Effects Of tho Combine.


ducing and carrying interests upon a
more stable foundation have been COM
pleted. Tho primary object in view has
been to secure more economical man
agement in the coal trade by
avoiding expensive selling agencies
and heavy commissions, so that coal pro-
ducers and carriers can get better results
and secure profits by saving expenses.
The com binations and complex agreements
heretofore made have been generally
found inadequate to accomplish the object
sought as the binding force was insult
1icient
The voting trust now holding the stock
of the Philadelphia and Reading railroad
VIII shortly expire and the control Of the
stock of that company has passed already
into hands that are friendly to the present
Reading management. The Reading
railroad has, by lease, acquired
control of the Lehigh Valley rail
road. A corporation in the state
of New Jersey, the Port Reading railroad,
which is under Reading management, has,
by lease, acquired control of the Central
railroad Of New Jersey. This practically
places in the Reading company's hands
the conduct Of the affairs Of the Reading,
LehiRh Valley and New Jersey Central
railroads, and also Uhrough the latter
the Lehigh and Susquehanna railroad Of
the Lehigh navigation company.
In the carrying on of the coal trade the
saving in commissions, agency fees and
the economics of the traffic under the new
arrangements are expected to reach
| ~ onuttuIIty
divided among the various railroad COM
panies interested.
When it Is further known that the con-
troll of the Delaware Lackawanna and
Western railroad has passed into hands
that are friendly to Reading management
the investing public will recognize the new
arrangements will tend to secure harmony
in the coal trade, and by saving unneces-
sary expenses and promoting economies
throughout the various railroad systems
concerned will make more stable values
for coal companies securities without adj.
ding to the cost of coal to the consumer,
1t is President McLeod's conviction, as
it has been that Of well infoi med and con-
sentative capitalists Tor many years past
that the existing methods Of marketing
ant hracite ure unnec6 ssarily cumbersome
and expensive. An agreement has been
reach ed that will revolutionize the
old system and result in enormous
savings to the companies interested
in the mining OF coal The plan
Is to consolidate Offices and red uce tho
number Of officers and employees thus en-
gagged at present, Tho joint business Of
marketing the product of these companiC s
will practically be controlled by President
McLeods corporation and will be so con-
Quoted as to not only secure economy, but
to prevent senscless and unnecessary
forms of competition 1t is Mr. McLeod's
theory that the industries of Pennsylvania
are now paying fair and reasonable prices
for their fuel, but that the rates now pre-
vailing at New York. Boston, Chicago and
Canada and other distant points should be
so equalized that they will bear proper
and just relation to the location Of these
markets with regard to the source Of sup
ply. This will give the industries Of
Pennsylvania their proper advantage over
those of distant points which have their
own advantages of location and which now
operate against Pennsylvania because in
addition to such advantages of location
they have those Of equal prices for fuel
also. This is wrong which will be
righted
1t Is estimated that these charges, taken
together, will yield new increase of at
least % cents per ton on all coal handled by
the consolidated Reading system, and with
out costing the company penny moro than
at present, except at such places as the
product of their mines is now sold at actua
loss. As the tonnage of the three companies
exclusive Of the Delaware, Lackawanna
and Western aggregates about 24,00 %
annually, this single item means a mel
gain of 50, 000,0 600 The Readings present
tonnage of 100000 will give it an in
creased revenue of S25O0,C0O Under the
terms of the leases and contracts the in
creased profit from this source Of the
other companies viii be divided equally
between the respective earning companies
and the Reading, giving the latter add
tional profit Of $lT5l 900,
Thus from this source alone the Re ad
ing's net revenue will be increased by the
tidy sum of 81, $50, 00J annually This mean,
dividend on Reading stock this year MOI
is this the end The absorption of the lie
: high Valley and New Jersey Central still
left in tho field one competitor of no incon
siderable Importance, the Delaware, Lacka
wanna and Western. 1t can be conf
/ IDENTIFY stated that the Lackawanna man
agement will be so changed as to bring it
I policy into entire accord with that OF tn
, tripartite alliance and it viii thereafte
act in close harmony with the Read ms,
This coup Of President McLeod's is thC
greatest in the history of railroad fuancler
a ing and makes the Reading as strong
= corporation as there is in the world, IT,
gross receipts Of tho Philadelphia an
Reading system will hereafter be SSl,0 o.
, 700 annually and the number OF its en-
ployes will approximate 10000, beu
more than employed by any sugl
: corporation on this plan. 1t is no,
: plain what was Mr., McLeod's min
when he acquired the Poughkeepsie bridg
and the lines tributary thereto, whic
Q throws the Reading aud its entire aug
s mented system into the very heart of NeV
j. England, giving it the only all rail rout
from the middle aud Southern states t
the East, with connections with all II
= portant Now England roads and enabin
/ it TO virtually control tue coal traffic o
\ that entire region,
d Tramps fired building at Eddyvile
Q KY, causing loss Of 81 50l One person
=, n clerk il missing and tkroe aro Injured