The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1892-03-09
THAT READING DEAL
Big Fight Ahead Over the
Legislation to Legal
iZe the Combine.
THE LOBBY IS In IT
Black Horse Cavalrymen Descend
ing on the Houses in
Trenton.
ADJOURNMENT NOT so NEAR
ADJOURNMENT NOT so NEAR
Special to the Jersey cftu Netcs.

Special to the Jersey Citu Netcs
TRENTON, March 9, 1S92.-Some weeks
ago when the Legislature started to in
vestigate the Reading coal combination,
an interview with Governor Albeit was
published in THE JERSEY CITY NEWS in
which the Governor said that he thought
that some legislation would be necessary
before the com bination could be carried
into effect. The Governor was true
prophet, and last evening the bill came
in. 1t comes from the Philadelphia and
Reading Railroad, and was introduced by
Mr.. Kalisch of Newark. It legalizes the
combination as far as the roads concerned
are incorporated under the laws of this
State.
PLAIN ENOUGH.
It provides sweepingly that in all cases
in which lease bas been executed be-
tween the railroad corporations chartered
under the laws of another State than TINS
State, and such lease shall be intended Dy
its terms to assign to the lessee the rignt
to use any railroad operated or controlled.
whether by means of the ownership OF all
or any part of the stock of the corpora
ton owning such railroads by the lessor
in such lease, and to exercise the fran
chise of such railroads, it shall be lawful
for the lessees in such lease to operate
said railroads and to exercise all the fran
chises and enjoy the privileges and I'M
munities connected Herewith as fully to
all intents and purposes as the same shall
be assigned; subject, nevertheless, TO
all the restrictions contained In the
charters or general laws under
which said railroads may have been con-
structed and heretofore operated. The
bill enacts that IL any railroad corpora
rim Of thjv StatQ has hereafter snail
lease its road or franchises to any other
railroad corporation of this State, the
lease shall not be invalid because the
capital stock of the lessee in such lease
may be owned. in whole or in part, by
foreign corporation or by resident or
residents of any other State. Another
section provides for the purchase of the
stock of any dissatisfied stock
holders by the roads which are
o plrtes to the lease and make apprais-
ment by disinterested Commissioners.
legal and binding, in case of any disagree
meat touching The value of the stock:
All conflicting legislation is repealed and
anumber of sections are incorporated to
leave no chance for litigants to break the
agreement under which the Reading has
acquired control of the leading anthracite
coal roads of the country.
WILL DEFER THE ADJOURNMENT.
The bill was referred TO the Committee
on Railroads and Canals of which Mr..
Beekman. the friend of the Lehigh Valley
Company, is chairman. II is probable
ment on Friday The bill was not intro
duced to be killed without a struggle, and
everyone predicts great struggle, which
it will take more than three days to end.
That an effort will be made to dispose of
the bill by final adjournment is certain,
but the fact that the investigation into
the deal was taken from Mr. Lanes COM
mittee which gave promises of accomp-
lishing something and placing 1t under
the control of Mr.. Beekman's committee,
has succeeded pretty efectually in
squelching any serious attempt at pre-
venting the combination.
M'LEOD's OWN SCHEME.
The bill is said today to be President
McIeod's scheme to end the war in this
State against the coal combine. Accord
ing to the views of the best lawyers here
and the leading members of the Legisla-
ure and they like especially
the provision under which the
companies which are parties to the lease
and agreements or either of them may
acquire the shares of dissatisfied stock
holders.
road ltigations in this State the owner
of an insignificant mum Der of shares has
been able to stop for months the consum-
nation of deals and generally 1t has been
done at the instigatiOn of rival corpora
-tions desiring to conceal their opposition.
The opposition now manifest to the deal
in question by various legislatures is un-
doubtedly due to the i'll will of Readings
competitors for passenger and freight
traffic. and it is well understood that If the
legislatures of New York, Pennsylvania
aud New Jersey do nothing to break up
the combine, edissatisaed" stockholders
will be brought forward to ask the courts
to Interfere. Under this bill. if it be-
comes law, no such game can be
played. =.
surrender his share or. shares, if
not at the market price as quoted
on 'Change, then at the figure fixed
by appraisers TO be appointed by the
. Courts. Stockowners holding their
shares at fabulous prices, or refusing to
part with them at any price, will be
forced by law to give them up. But it is
very doubtful if the bill can pass unless
final adjournment of the Legislature is
postponed a week or two.
1t is certain to engender big fight. and
a measure Offering such opportunities to
the lobbyists would never be allowed to
slip along in either the Senate or House
without hourly and even momentary
manipulation.
This morning the lobbyists are at WORK
irving to drum up'' votes to rescind the
resolution for adjournment on Friday.
This indicates that Reading means
to pass the bill il it
is at all possible. 1t claims to
have votes enough already. but votes here
are more uncertain than horse racing re.
suits. Pennsylvania always has the most
votes here when the roll is called.