Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-02-11

per cent on its capital stock, and that the
Lehigh Valley makes a net gain of this
amount, which, added to the per cent the
company is now paying, will provide for
the per cent guarantee and leave a surplus
of per cent. In addition to this the Buff
falo and lake traffic of all these lines will be
thrown over the Lehigh Valley. 1t will
be seen that President Mcleod has made an
uncommonly good bargain.
To Cut Down the Expenses.
But the most important point is vet to be
stated. 1t is Mr.. McLeod's conviction, as
it has been that of well-informed and con-
servatiye capitalists for many years past,
that the existing methods of the present
corporation are useless and expensive. An
agreement has been reached that will COM
pletely revolutionize the old system and re-
suit In savings to the companies interested
in the mining of coal. The plan is to con-
solidate offices and reduce the number of
officers and employees thus engaged at pres
ent. The joint business of marketing the
product of these companies will practically
be controlled by President McLeod's cor
poration, and will be so conducted as to not
only secure economy, but to prevent sense
less and unnecessary forms of competition.
1t is Mr.. McLeod's theory that the indus
tries of Pennsylvania are now paying fair
and reasonable prices for their fuel,
but that the rates now prevailing
at New Work, Boston, Chicago,
in Canada and other distant points
should be so equalized that they will bear
proper and just relation to the location of
these markets with regard to the service of
supply. This will give the industries of
Pennsylvania their proper advantage over
those of distant points which have their
oAr ~ HI oh
operate against Pennsylvania, because in
addition to such advantages of location
they have those Of equal prices for fuel also.
This is wrong which will be righted.' 1t
is. estimated that these changes, taken
together, will yield a new increase of at
least % cents per ton on all coal handled by
the consolidated Reading Railroad and with
out costing the consumers one penny more
than at present, except at such places as the
product of their mines is now sold at actual
loss.
Reading Is Great Corporation.
As the tonnage of the three companies,
exclusive of the Delaware, Lackawanna and
Western aggregated about $24, 10000 an
nually, the single item means net gain of
Sc, 900, 900. The Readings present tonnage
OF ten millions will give it an increase of
81, 800, 900. Under the terms of, the leases
and contracts the increased profit from this
source of the other companies will be de-
vided equally between the respective earn
ing companies and the Reading, giving the
latter additional profit of 81. 750, 900. So from
this source alone the Readings net revenue
will be increased by the sum of four and one
quarter millions annually. This means
dividend on Reading stock this year.
Nor is this the end of President McLeod's
great achievement. The absorption of the
Lehigh Valley and New Jersey Central still
left in the field one competitor of no incon-
Importance, the Delaware, Lacka-
wanna and Western. It can be confidently
stated that the Lackawanna management
will be so changed as to bring its policy into
entire accord with that of the tripartite alli-
ance, and will thereafter act in close har-
mony with the Reading. This coup of
President McLeod's makes the Reading as
strong corporation as there is in the world
Gross Receipts SsO,OOO,OoO.
The gross receipts of the Philadelphia
and Reading system will hereafter be
$50, 900, 900 annually, and the number of its
employees will approximate 100000.
1t is now plain what was in Mr.. McLeod's
mind when he acquired the Poughkeepsie
bridge and the lines contributary thereto,
which throws the Reading and its entire
system into the very heart
of New England, giving it the only rail-
road from the Middle and Southern States
to the East, enabling it to virtually control
the coal traffic of that entire region. Mr..
Mcleod had the hearty support in this
matter of Mr.. A. J. Dre1el and the bank
ing house in which he is associated, Mr.
John Lowber Welsh and others. Mr.. George
f. Baker, of the New Jersey Central, and
others above mentioned, have secured the
largest holding there is at present in the
Delaware, Lackawanna and Western Rail
road. The success of this combination, hav-
ing at its back the strongest financial insti-
tutions in the country, is assured.