Connecticut western news., 1892-02-18
A HUGE RAILROAD DEAL.
THE READING IS NOW MASTER OF
 THE COAL SITUATION.

1t Absorbs the New Jersey Central, Lehigh
 Valley, and Delaware, Lackawanna and
 Western Railroads and Controls the
 Anthracite Coal Markets and Prices.
 PHILADELPHIA. Feb. 11.-Through the greatest deal ever made in the history of railroading, the Reading Railroad company will pay a dividend on it's stock this year, and it's net earnings will increase $,25O, 900 in the next twelve months.
 The Reading now controls, by lease of s99 years. the Lehigh Valley and New Jersey Central railroads, and on Feb. g the Della ware, Lackawanna and Western will be con trolled in the interest of the Reading. The Reading and its leased lines now represents $500, COG, 900 of capital and it's earnings will amount to $sO, GOO, 900 per year.
 This is the greatest coup ever known in corporation finance, beside which the fa- nous South Penn-Beech Creek-West Shore deal of 1885 palcs to absolute insignifcance. The statement as to the control of the Le- high Valley and New Jersey Central IS made authoritatively. At the general of fees of the Reading Railroad company President Mcleod is today the king of rail- road financiers The Reading controls 72 per cent. of the anthracite coal production and hereafter it is absolute master of the situation. By this combination the net re- ceipts for anthracite coal will be at least twenty-five cents per ton greater than last year.
 A Stupendous Deal.
 The results of this stupendous deal are so far reaching as to be difficult of compre hension. The terms of the lease with the Corf y,y-c For of per cent on the stock of that company, and in addition the Central is to receive one half of its own net earnings in excess of the amount required for the z per cent. dividend until the total dividend reaches 10 per cent per annum, the surplus over the 10 per cent to revert to the Reading. The Central earned last year 10& per cent. so that the Reading will get per cent. on thus lease from the start
 The Lehigh Valley is guaranteed divi- dend at the rate of 5 per cent. per annum until May S1, 1892; from that date until Dec. at the rate of 6 per cent, and after the last named date the guaranteed divi- dend is per cent.
 In addition to the guaranteed dividend, and after the latter is paid, the Lehigh Valley stock is to receive one-h half of the net earnings of that road, until the total dividend shall equal 10 per cent. per annurn, after which the surplus goes to the Reading in the same manner.
 To Revolutionize the old System.
 It should be remembered that the Lehigh Valley is now paying the Erie s1 ,25O, LOO an- nually for trackage, a sum equivalent to 8 per cent. on it's capital stock, and that the Lehigh Valley makes net gain of this amount, which, added to the per cent. the company is now paying, will provide for the 2 per cent. guarantee and leave a surplus of per cent. In addition to this the Buffalo and lake traffic of all these lines will be thrown over the Lehigh Valley.
 It is MT. McLeod's conviction that the ex- isting methods of marketing anthracite are unnecessarily cumbersome and expensive. An agreement has been reached which will completely revolutioniZe the old system and result in enormous savings to the compa- nies interested in the mining of coal. The plan is to consolidate offices and reduce the number of officers and employees.
 It IS Mir. McLeods theory that the indus tries of Pennsylvania are now paying fair and reasonable prices for their fuel, but that the rates prevailing at New York, Boston, Chicago, Canada and other distant points should be SO capitalized that they will bear a proper and just relation to the locar ton of those markets with regard to the source of supply. ....
 The Acme of Railroad Financering. This will give the industries of Pennsyl- vania their proper advantage over those of distant points, which have their own ad- vantages of locality, and which now operate against Pennsylvania because, in addition to such advantages of location, they have now those of equal prices for fuel also. This Is a wrong which will be lighted.
 It is estimated that these changes taken together will yield an increase of at least twenty-five cents per ton on all coal handled by the consolidated Reading system, and without costing the consumer one penny more than at present, except at such places as the product of the mines is now sold at actual loss.
 It is now plain what was in Mir. McLeod's mind when he acquired the Poughkeepsie bridge and the lines tributary thereto, which throw the Reading and it's entire augmented system into the very heart of New England, giving it the only all rail route from the middle and southern states to the east, with connections with all important New Eng land roads and enabling it to virtually con trol the coal traffic of that entire region.