Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1892-02-11
GREAT RAILROAD DEAL.
The New Jersey Central and Lehigh
Valley Roads Pass Under
THE CONTROL OF THE READING
Under a Lease for Nine Hundred and Ninsy.
Nine Years-Pr.sidsni Mcleod Now he
Railroad King Of the World.
S600,00O000 Capital.

New YORK, February l0.-The New
Jersey Central and the Lehigh Valley
Railroads have passed under the con-
troll OF the Reading Railroad Company.
The Reading Company guarantees the
payment OF dividends up 20 per cent
on the stock OF both roads. The divi-
dends, IL is said. will be on sliding
scale for several years.
To secure the guarantee the Reading
Company will put in trust securities
enough 10 recover the dividends to be
paid. The primary object in view has
been to secure more economical manage
ment in the coal trade by avoiding ex-
pensive selling agencies and heavy COM
missions, so that while coal will not
cost any more 10 the consumers, the
coal producers and carriefe can get bet
ter results and secure profits by saving
expenses. The combination and COM
plex agreements heretofore made have
been generally found inadequate TO ac-
complish the object sought as the bind
ing force was insufficient
The following statement was furn-
ished the press this evening";
Through TIE greatest deal ever made
in the history OF railroads, the Reading
Railroad Company will pay dividend
on It's stock this year The Reading
Railroad Company's net earnings will
increase S4,25O,000 during the next
twelve months. The Reading Railroad
Company now controls by lease for
900 years the Lehigh Valley and the
Jersey Central railroads aud on February
%, the Delaware, backawanna and
Western will be controlled In the In
terest OF the Reading. The Reading
Railroad Company and It's leased lines
now represent six hundred millions OF
capital, and IT'S earnings will amount TO
$50, 900, 900 per year. This Is the
greatest coup ever known In corpora
tion finances. beside which the famous
South Penn and Beech Creek and West
Shore deal OF 1855 pales TO absolute In
significance.
Presiden. Mcleod is to-day the king
OF railroad fnanciers The days OF
Readings financial difficulties are at an
end. and to-day there Is no stronger
railroad corporation. IL controls 7e per
cent. OF the anthricite coal production
and hereafter IL is absolute master OF
the situation. BY this combination the
net receipts for the anthracite coal will
be at least 25 cents per ton greater than
during last year.
The result OF this stupendous deal is
so far reaching as 10 be difficult OF COM
prehension. An agreement has been
reached that will completely reyolu-
tloniZe the old system and result IN
savings to the company's interests In
the mining OF coal. The plan II % con-
solIdate offices and reduce the number
OF officers and employees thus engaged
at present.
II can be confidently stated that the
Lackawanna management will be so
changed rs 10 bring It's policy into
entire accord with that OF the Alliance,
and IL will thereafter act In close har-
mony with the Reading. Tails coup OF
President McLeod's Is the greatest In
the history OF railroad fnancering, and
makes the Reading as strong corpor-
alton as there Is In the world.