New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-08-27
FATE OF READINGS LEASES.
VIEWS ON THE NEW-JERsEY DECISION.
,rPIcERs OF THE ALLIED ROADS SAY THE AL
LANCE. WILL NOT BE BRoKEN-ExCITEMENT

LANCE WILL. NOT BE BRoKEN-ExCITEMENT
AND BREAK IN READING STOCK.
The interest in Wall Street In the decision OF
hancellor McGIl OF New-Jersey pronouncing the
ease OF the Central Railroad OF NewJersey by 'he
Fort Reading Railroad to be Illegal was demonstrated
w the excited crowd OF brokers which Assembled
oround the post which marks the place Tor dealings
\, pbi,adelphia and Reading stock when the Stock
Exchange opened for business yesterday In the rst
few minutes there such confusion that Dozens OF
,nerent prices were made by sellers and buyers at
h.. same moment The Official quotation was hXeo
:, 81 H. against 80 Thursday night, and 81 IA WAS
he lowest price, A food OF selling orders came Oh.
around the figures, but purchases, generally supposed
.. no in behalf OF the big shareholders. prevented
hrther decline. After enormous transactions Ill tne
irst half hour. the market became more quiet uh"er
he influence OF reassunng statements by rahfoao
,ncers interested In the Reading leases anu tne
ock recovered to SO 49, closing unsettled at 81 oo'
The total transactions In Reading were 6oeoo shares
mr. nearly onefourth Of the entire TRANSACTIONS AT 'he
stock Exchange. u
There is considerable diversity Of opinion In wall
creet "a to the effect of the New-Jersey decision
pnokers bearishly inclined, insist that Win the oo
cations of the lifted from the Jersey Oeh'ra
,ts operaton by the old corporation may interfere
with the profits which the Reading Railroad eApec.eu
10 secure from the lease. on the other manu. ,ne
friends OF the coal combination insisted uAV u'e
NewJersey decision important only In i's 'ech-
cal
Jersey Central and the Lehigh Valley wouid reih"'n
virtually undisurbed under a new form. MoS' VI
the downtown members OF the coal 'rade oiu ho'
expect any change 10 result In the contro OF anni
cite affairs 1t remains 10 be seen however whe'her
the harmony which has been maintained IN the
ooa, trade cannot be interrupted by future tes's Ill
,, NJ tho fact that the relations between the three
u,.d coal roads must rest legally until there is d
final determination OF the legal points yet s"p'e0'
IN appeal from the ChancelOr's decisloh' upo" '''
GOOD faith or the selfnteres of the railroad managers
There will be no immediate change In the ohois'
q n.rsonneln OF the New-Jersey Central. Whch .no
orders of the court are served meeting u Nie VI
oct,re will he held and a course Determined uPoh'
~ the Jersey Central officers are aoe 10 carry o"'
cir idea of simple change In titles In oruer 10 ivy
the mandate OF the court, little sMiuhg oi ut'e9 ne
fe made. The presidency OF the PORT heaoins N''
road now held by Albert Foster, Piniadelpma an"
Reading man, will become of trihing Importance o.
porers MAXWELL who is now managing the jersey
Central as vicepresdent of the Port Reading Will
rosume full executive authority as president Vi te
,a,.ov Central. Among the division officers the
changes NAV be numerous but 1t is asserted by 'he
Reading interests that there will be no lrc'on ~
tending a Encouragement OF officials
Mr. Maxwell said that lie did not thhR tne ue
,.,on q, Chancellor McGill would have any matters"
nect on the relations between the roais Inc
legal points have yet to be passed upon pS supiio
courts he added, land the injunction OF 'ie N"a''
cellor simply requires the Jersey Cehtrai 10 opo'0
c. ronortv We WILL of course, conform to the orders
=, tho court but the traffic relations between inc
Reading and the Jersey Central Will continue pccuse
IT, ara ~ mutual advantage. There have Dcel ho
radcal changes in our staff under the lease ana a"
will be an easy matter to make such changes do "'u
reouired to carry out the Chancellors decision.
49,, Relieve that the coal trade will be affected. The
railroads are not coal producers, and DO hot TX p
There IS no reason why there should De any i.'i
cn,,on IN the present cooperation In the trane'
asnnposc pending a final decision, there shouin Do
nm excess OF earnings over Z per cent earai'eu ps
the Reading, what would be done WITH uie suiPiu'
was asked. r, J., ~
Mr. Maxwell smiled as he replied; "Ihere Is no
prospect of that sufficient to worry u.s. But II "ou'o
no easv enough TO keep separate accounts 80 ta' le
Reading could receive its proper proportion OF the sur
nus I'm case the lease sustained by tie upper
courts As to any interruption OF economies co''e"
plated by the combination, don't think the ii]uic
ton will have much effect. There have been rev us
charges of men, and the savings made so lar nave
come through running only one train @ere WV
trains were run side by side. You VIII hhd In iIeS,.
dent McLeod's statement a full expression Vi NY
views Of the situation ~
u q Fabpestock vIce-presdent OF the First Ma
tional Bank, whose managers were largely lh'errs"u
., tho contamination OF the coal deal" said Ihere
viii no M change I'm the relations Of the railroads e4
cept to conform to the technical requirements Va '
law ms now construed. There Will be all apPe"i io"
tho Chancelors decision, hut so far as We are COLI
cerned the alliance of the three roads couid De cur
ried out without the lease as We'll rs WIN w. i"c
alliance will be maintained under some for'u Dec""Ss
.. ,s ono NJ mutual benefit. The Jersey Colthi rom
has exceedingly valuable terminal faciiineS' anu ."e
use OF them by the Reading aud the Leiish ,"".'
adds 10 our revenue. The two robus ai'o po"'"' ny
nossessnC the excellent facilities which we can give
Them The alliance Is natural and, therefore, VIII
hold The practical operation OF the system can w
lrfO
change OF titles or OF personnel There heeo DC no
radical action In this direction"
Under the lease the Reading and Jersey Central
divide all surplus per cent guaranteed " no
latter up to 10 per cent MT. fahhcS'ooh wa" -, -
n in case the surplus earned, would no. tno
oues,,on arse rs TO whether the money shouid De
turned over by the Jersey Central operated by us
own organization TO the Reading I'VE neeu ho'
meet that point until 1t arises, he answered. 0o'.
n Stockholders action IN such hypoheliVa' '"'
Well. there Is nothing TO prevent stocKhouer iro"
DOING n foolish thing But do not think that the
C,anoouor,e decision has d sturbed the ownership OF
n, s.vora, nroperes and the gifts OF owners cahot
no ,ntorfored with The interests of the allied roads
are Identical md hence the alliance VIII DC "huAS-
turbed. ,...,o az do
"Non said Mr.. Fahnesock, In CONCLUSION, w
not coo onv reason why the Injunction should ancct
the coal combination. There Is no law 10 pieNen'
Co.., na o or others from selling our coat at profit
,,o ,r,cos The trade conditions VIII continue W
rpe and the mutual interests OF the coal COMPANIES
Will lead them 70 cooperate TO secure gooi pi1ce'
The Injunction has not altered the real situation az
all and while the court win be respected, 'here %
nothing in the law TO prevent the oD!ec's vi ."e
triple alliance from acco'hP"'s ~
a form other than lease. .,,
The following statement Is an oHclal ou'ei>i"s
from President A. A. Mcleod Of the Philadelphia ana
Reading Company 49,. uso,.,
haye no information to the contents OF .no op' S
hut Is rs
h. restrained by injunction the operation oil ''e o'n"
~.,.oa ., New.Jersey by the Port Reading company
the practical operations OF the property VIII 10 "
,u,cndered 20 the directors OF the Central