The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1892-02-11

and Western. IL can be confidently stat
ed that the Lackawanna management
will be SO changed as to bring its policy
into entire accorG with that of the tri-
parite alliance. and it will thereafter act
in close harmony with the Reading.
The gross receipts OF the Philadelphia
and Reading system Will hereafter be
$50, 600 900 annually and the number OF
It's employees will approximate l0OOU0.
HOW 1T WAS WORKED.
The Reading Company has deposited
with Messrs. Drexel, Morgan & Co. OF
New York s., ,0000 600 in securities TO secure
the Lehigh Valley lease and $4,000, 900 in
securities to secure the Central Railroad
of New Jersey. The three properties
will be merged into and fully controlled
by the Reading executive, Mr.. Mcleod
The deal WIS conducted by President
Mcleod of the Reading Company, who
has been working on it for several
months. The leases of the Jersey Central
and Lehigh Valley were practically con-
cluGed some time ago, and SO dlplomatlc
was the course of Mr.. Mcleod that
neither company knew of the negotia-
tions with the other until the transac-
tions were completed. The power behind
President Mcleod was Drexel q Co.,
John Lowber Welsh and George +. Baker
of New York, who have taken an unusual
interest in Readings affairs for long
time. These gentlemen are entitled to
cuted the greatest combination of capital
that has ever taken place in this country
Reading officials positively assert that
they will not raise prices to the public.
All the results TO be obtained are expect
ed to flow from more economic manage
ment. The Reading Company, under the
new arrangement, will be the second cor
poration in the United States in point OF
capital and income. The capital stock
alone will amount to $250.000,0O0, and the
gross earnings will be over 500, ,O0O, QUO per
annum. The roll of the employees will
contain aDrroximately 100000 names.
Curing the year 1891 the Lehigh Valley
Company earned over six per cent. on its
capital stock, Jersey Central 10 3-S per
cent. and the Delaware, Lackawanna &
Western 10 per cent.
THE COMBINING ROADS.
Aside from other considerations which
will effect the earnings of the Jersey Cen
tral and the Lehigh Valley equally, Presi-
dent Mcleod is confident that the Lehigh
Valley after May 1, when its new line to
Buffalo will be completed, Is certain on
it's own merits, to earn more than the full
amount of the guarantee, wholly regard
less of any benefit which its revenue may
derive from the new relations between
the three companies.
The Lehigh Valley is now paying the
Erie 81 ,250, 600 annually for trackage, Il
sum equivalent to per cent. on its capi-
tai stock, and that the Lehigh Valley
makes net gain of this amount, which
added to the per cent. the company is
Eow paying. will provide for the per
cent. guarantee, and leaves a surplus of l
per cent. In addition to this the Buffalo
and lake traffic of all these lines will be
thrown on the Lehigh vally.
The Central Railroad of New Jersey
was leased by the Reading Company on
June /, 1888, on six per cent guarantee,
htf in 1888 dpFunlt made and the
lease was annulled by the courts. The
Central went into the hands of receiver
until 1887, when the Corbin-Maxwell-
Graves party, who are backed by the First
National Bank of New York, took pos
session, and with the aid of new capital
aud vigorous management the company
was soon PUT on a dividend paving basis.
The capital stock is SIS, $685. 200. The
system comprises 652 miles. On Feb
ruary Q, tho company paid d per cent
quarterly dividend. The Central Com
pany also controls the Lehigh and Wilkes.
barre oaliCompany.
The Delaware, Lackawanna and West
ern which the new people in Reading
have gotten control of through purchases
of the stock controls S92 miles of road.
The capital stock is S26,000,000 and the
funded debt $3,674. 900. of which 100000
comes due in June. The road has paid z
and Sper cent. dividends without break
since 1881.
The Board of Directors is one of the
wealthiest in the United States, and it in
cludes Samuel Sloan, w. w. Astor, Percy
r. Pyne, Sydney Dillon. William Rookie
feller, Russell Sage, John J. Blair and
Wilson G. Hunt Jay Gould was on the
Board for many years. but he retired last
year. The coal tonnage in recent years
has ranged from 100000 to 100000 tons.
The company owns large amount of coal
territory in the upper coalfield. The price
of the stock has advanced from 144 to 100
within ten DAYS.