The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1892-02-17
THE FINANCIAL REVIEW.
Whole Course Of Business Disturbed
by the Deal in the Coal
Roads.
Mature Of tho Arrangement That
Practically Consolidated This
Great Industry.

III Probability Of Gold Export, whicl
Must he watched Closely-lsffeot of
Such circumstance.
New York, Fob. 16.-ESpeeial. THE last
circular issued by the banking house o
Henry Clews & Co., II. Is and Is Broat
street. and So Wall street, says: Duriils
tho past week. the whole course Of buaines'
ut the stock exchange has undergone :
change and been disturbed by extraordi
nary developments in connection with ths
coal roads. A. frat, indefinite rumors
came from Philadelphia and other sourcea
Of an impending great deal between
some Of the leading anthracite corpora
tions; but, as there wal at the time \ large
outstanding '.short'' interest o. these same
properties, the reports were construed as
merely designed for transient speculative
effect. That being tbs view taken OF the
situation and the prices of these stocks
having advanced rapidly Notwithstanding.
the market became apprehsnsive OF q burst
of some great combination operation, and
most stocks outside the eoalers were viz
tually neglected. III.
On Wednesday. the fact was authoritivsly
acknowledged that an important deal had
been already contaminated as between the
Reading, the Central of New jersey and the
Lehieh Valley Railroad companies, calcu-
lated 10 havo important future bearings
upon these 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 q lease. which would
be illegal in the states through which the
roads run. but through a trust arrange
n,ent which it is assumed will hold good IN
law. The 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 Lshigh Valley and Jersey Central
is placed in esero in tho hands OF a trustee
and in behalf of Reading, and the latter
oompany places in the custody of said
trustee 4 certain amount of interest bear
ING securities, to insure the fultillment OF
the engagements undertaken by Reading
towards the two other companies. Read
ing guarantees dividends upon the stock
Of the Lohish Valley at the rate of
I've Der cent until July 1. 1892; at
nix per cent from that date until July !,
1899, and Ut seven per cent from and after
that date. After July l, 1884. seven per
cent is guaranteed, and any surplus above
tina is to be divided equally between Read
ing and Lehigh Valley until 70 per cent 10
take ali further surplus. Reading guaran-
tees seven per cent henoeforth on New Jsr-
sey Central stock. and divides equally any
surplus above that amount with the latter
COM The directors Of tho two minor
roads will be given full representation in
the directorate of Reading.
This combination will covor fully go per
cent of the present production of anthra-
cite coal. 10 guard against The possibility
Of this majority in production being at
some future time lost, it is understood that
the friends Of this Transaction have pro
cured a controlling interest in Delaware.
Lackawanna Il Western, SO az to secure the
more certainly the harmonious co-opera-
ton Of that company for the objecta con-
t-mplated in the amalgamation. The hsr-
moEious cooperation of these four COM
panies will control rs per cent of the entire
output of anthracite. This arrangement
covers a share and bond capital sxgregat-
1862. SOC, 600 and must therefore be ranked
among the most important railroad consol-
idations accomplished in our railroad his
tory.
The professsd object of this great "deal'
10 to produce better harmony among the
producers and carriers of anthracite, to
economic in the methods of its distribu-
ton, and to obtain better control over its
prices. The means seem to DO construed
as q short and easy way to the end Prob
ably, there is little doubt that the first re-
suits will be satisfactory, even highly 20, to
the owners of the properties. But it is net
to DO overlooked that The consolidation is
must encounter problems new to our indus
trial experiences and the solution of which
cannot now be foresecn. III it's principle,
though not in its form, the compact is vir-
tually the game as that upon which our
great 'trusts'' have been formed and, with
one or two exceptions, our experience of
those organizations has not becn such az
to encourage sanguins hopes of their per-
Within the past month, two of
them have broken up, partly from dis
agreements among their members. but
because they have failed to IN
the control for which they were organ
lied. The public will regard thisn new ANAL
of interests HIS Il long stop in
tina direction of a monopoly of the anthra-
cite trade. aud certainly not without some
prima facie show of reason. How that or
dangerous power will, in this cass.
De used remains to be seen. 1t Can hardly
fail to be viewed with distrust by all classes
Of the community; for it holds a threat
over every consumer of fuel, from the great
transportation and manufacturing corpor-
to the humblest cottager. Moreover,
the spread of these great concentrations Of
is steadily building upnhostile pub
lio opinion which may some day assert it.
self in legislation with overwhelming effect;
and the courts are accommodating an i'm
posing mass OF decisiors against combine
whose effect is to impair the free
working OF the law of competition. Theio
Is no saying what may be the ultimate nut
of these self-protsctive tendencies of
public opinion: and, for that reason, it ia
lm possible to judge how far the permanent
value of the securities concerned in this
achievement.
AZ to thu Immediate effect, there is no
room for a second opinion. After its
caution pending the mere rumor stage of
the negotiation, Wall street rushed into
wild Excitement over the accomplished fact.
On Thursday, following the previous ad-
OF ten to fifteen points on the &C.
directly concerned, those stocks
further rose from five to ten points, md
minor but yet large advances wee made
every stock that has the remotcst cor
with the coal traffic. Other stocks
generally have sympatlized with the coal
ers to the extent OF being firmsr, but with.
cut any CONSPICUOUS advances. What the
later effects of this state of things on tho
general market may bs is not oasy to for,-
shadow. Ihs first hin in ORDER ia n sat