The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1892-02-15
FINANCIAL REVIEW.
Horny Clews Discusses tho EHecs
Of tho Great Deal.
EXTRAORDINARY DEVELOPMENTS.
Tho FURRY on Wall Street Caused by
the Dcnl...Thc Real Significance OF
1t Discusscd.-.HowItE Effects sccurl.
Observation-Disclosures of tho Gold Elk.
! ports.
sreelal core.pondaaee etps ln,eyrccncer

Srtciai Correspondence otiht InttHliGnccr
NEw YoRK, Fob. 13.--Durlng tho past
week tho whole course OF business ut
tho Stock Exchange has undergone a
change and been disturbed by extra.
ordinary developments in connection
with tho coal roads. At first indefinite
rumors camo from Philadelphia and
other sources of an impending great
IDEAL" botweon somo Of the leading
anthracite corporations; but, as thoro
wns Mt tho timo largo outstanding
Short" interest on these same proper
ties, tho reports were construed as
merely designed for transient spccula-
tive effect. This being tho view taken
Of the situation and the prices. OF these
stocks. having advanced rapidly not
withdrawing, tho market became ap-
prchensive OF aburst OF some great COM
bination operation, and most stocks
outside tho coalers were virtually neg
lectcd.
On Wednesday the fact was authorlta.
lively acknowledged that IN important
deal had boon already conaummatcd as
between the Reading, tho Central OF
New Jersey and tho Lchigh Valley Rail-
road companies, calculated to have i'm
portant future beqrings upon those
companies, II not upon the entire pro-
duCtlon and distribution OF anthracite.
Tho purpose OF tho arrangement is to
place tho Lehigh Valley and tho Cen
trail OF New Jersey under the direct con-
troll OF Roading; not through a lease,
which would be illegal in the States
through which tho roads run, but
through trust arrangement which it is
assumed will hold good in law. The
plan ID very much tho Bame as that
under which the Chicago Gas Company
controls tho several corporations OF
which it is composed. a majority OF
the stock OF LehiGh Valley and Jer-
soy Central is placed in escro in tho
hands OF o trustee and in be-
half OF Reading, and tho latter
Company places in tho custody OF the
said trustee certain amount OF interest
bearing securities, to insure tho fulfil
ment Of tho engagements undertaken
by Reading towards tho two other COM
panies. Reading guarantees dividends
upon tho stock OF the Lchigh Valley at
the rate Of s per cent until July !, 1892;
Mt 6 per cent from that date until July
l, 1893, and at 7 per cent from and after
that date. After July |, 1894, per
cent is guaranteed. and any surplus
above that Is to be divided equally be-
tween Reading and Lehigh Valley until
10 per cent is paid to the latter, when
the Reading will take all further sur
plus. Reading guarantees per cent
henceforth on New Jersey Central
stock, and divides equally any surplus
above that amount with the latter COM
pany. The directors OF tho two minor
roads will be given full representation
in the directorate OF Reading.
This combination will cover fully GO
per cent. OF the present production OF
anthracite coal. To guard against the
possibility OF this majority in produc-
ton being at some future time lost, it is
understood that the friends OF this
transaction have procured controlling
interest in Delaware, Lackawanna and
Western, so as to secure the more GER
tainly the harmonious cooperation OF
that company for the objects contem-
plated in the amnlgamation. The har-
monious cooperation of these four com
panies will control Is per cent. OF the
entire output of anthracite. This ar
rangcment covers a share and bond
capital>aggreSating, for the three COM
bined companies, 1862, 100000, and must
therefore be ranked among tho most
important railroad consultations ac-
complished In our railroad history.
Tho protested object OF this great
deal Is 10 produce better harmony
among tho producers and carriers OF
anthracite, to economizo in the methods
of its distribution, and to obtain better
control over ita prices. The means
Soon to DO construed as q short and
easy way to tho end. Probably, there
is little doubt that the first results will
DO satisfactory, oven highly SO, to tho
owners OF the properties. But it is not
to DO overlooked that tho consolidation
is an experiment, and that its out.
workings must encounter problems new
to our industrial experience and the
solution Of which cannot now be fore
seen. In its principle, though not in
its form, the compact is virtually the
same as that upon which our great
trusts" have been formed and, with
one or two exceptions, our experience
OF those organizations has not been such
as to encourage sanguino hopes OF their
permancncy. Within tho past month,
two of them have broken up, partly
from disagreements among thoir mem
beers, but principally because they
have failed to insure tho control
for which they wore organized. Tho
public will regard this new amalga-
nation OF interests MS long step in
the direction Of monopoly OF tho an
thracite trade, and certainly not with
out some primu facie show OF reason.
How that ordinarily dangerous power
will, In this case, be used remains to bo;
seen. 1t can hardly fail to be viewed
with distrust by all classes OF the COM
munity; for it holds threat over every
consumer Of fuel, from the great trans
portation and manufacturing corpora
tons to the humblcst cottager. More
over, the spread Of these great concen-
trations of capital Is steadily building
up o hostile public opinion which may
some day assert itself in legislation with
overwhelming effect; and the courts arc
accommodating IN imposing mass OF dc.
cisions against combinations whose
effect is to impair tho free working Of
tho law OF competition. There is no
saying what may DO the ultimate out
come Of these self-protective tendencies
Of public opinion; and, for that reason,
it is impossible to judge how far tho
permanent value OF tho securities con-
carnad l., th;r On, lxn n, a4in., MAJ. L