Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1892-02-18
1t Absorbs Jersey Central and
Lehigh Valley.
MASTER OF THE COAL MARKET
One of the Biggest Railroad
Deals on Record.
Tho Roading VIII Now Control ~ Per
Cent of tho Mine Production--New
Terminals Acquired In Now 2ork--
Mileage of tho New System.

uucin8 ana carrying interests upon a
more stable foundation have been com
pleted. 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 to the consumers, the coal pro-
ducers and carriers can get better results
and secure profits by saving expenses
The combination and complex agree
ments heretofore made have been
generally found inadequate to accom-
plish the object sought as the binding
force was insufficient. There has now
been carried into practical effect plan
formed by President Mcleod, which
embraces the most extensive financial
enterprise yet undertaken in this coun-
try, and which he thus briefly outlines;
"The voting trust now holding the
tock OF the Philadelphia g. Reading
,ailroad will shortly expire, and the CON
rol OF the stock of that company has
passed already into the hands that are
friendly to the present Reading manage
ment. The Reading railroad has by
lease acquired control of the Lehigh
Valley railroad. A corporation in the
state of New Jersey, the Port Reading
agement, has by lease acquired control
of the Central railroad of New Jersey
This practically places in the Reading
company's hands the conduct of the
affairs of the Reading, Lehigh Valley
and New Jersey Central railroads, and
also (through the latter the Lehigh 81
Susquehanna railroad of the Lehigh
Navigation Company.
tI1ndar tbn 1aaoac thou will bn ,,o "a n
guaranteed dividend of seven per cent
per annum upon stock of the Central
railroad of New Jersey and guaranteed
dividend upon the stock of the Lehigh
Valley railroad at gradually increasing
rates--five per cent per annum until
May 3lst next, then six per cent per
annum for the half year until November
Both, and afterwards seven per cent per
annum. In each case it is provided that
the net surplus earnings of the respec-
tive companies, if any, beyond the above
guaranteed rates of dividend shall be
divided between lessor and lessee until
the lessor's share reaches with the guar
anteed rate, total OF 10 per cent per
annum."
NEW TERMINALS ACQUIRED.
The great benefits of the new arrange
ment are obvious. In addition to the
splendid Reading terminal now CON
structing in Philadelphia, the Reading
will acquire the magnificent terminals
of the Lehigh Valley and New Jersey
Central on New York harbor. Through
the Lehigh Valleys new western exten-
sion there will be provided direct route
y to the lakes at Buffalo, with spacious
terminal there.
In tho rnrrvipu nn nf ba naoI t,a Il %
the saving in commissions, agency ex-
penses, and the economies Of the traffic
under the new arrangements, are ex-
pected to reach several millions of dol
lars annually, divided among the various
railroad companies interested. When it
is further known that the control of the
Delaware, Lackawanna & Western
railroad has passed into hands that are
friendly TO Reading management, the
investing public will recognize the new
arrangements will tend to secure har-
mony in the coal trade, and, by saving
unnecessary expenses and promoting
economies throughout the various rail-
way systems concerned, will make more
stable values for coal companies securi-
ties without adding to the cost of coal
to the consumer.
The financial arrangements herein
outlined has the active support and CO.
operation of a. j. Drexcl, j. Pierpont
Morgan and j. Lowber Welsh, and also
j. Rogers Maxwell, George r. Baker OF
the New Jersey Central management
The latter gentlemen and their friends
have become the largest holders of Lack.
awanna stock.
Through the deal just made, the
Reading company will pay dividend
on its stock this year, and its earnings
will increase $4,250,000 during the next
12 months. The Reading company and
its leased lines now represents 5000,
900 of capital, and its earnings will
amount to $S0,00O,000 per year.
ANTHRACITE COAL CONTROL.
The Reading now controls 70 pei
cent of the Anthracite coal production
and, hereafter it Is absolute master OF
The situation. BY this combination, the
net receipts for Anthracite coal will be al
least 20 cents per ton greater than dur.
ing last year.
1t is Mr.. McLood's conviction, as il
has been that Of well informed and con.
servative capitalists for many years
past, that the existing methods Of
marketing Anthracite are unnecessarily
cumbersome and expensive. An agree
ment has been reached that will com
pletely revolutionize the old system and
result in enormous savings to the com
panies interested in the mining of coal
The plan is to consolidate offices and
reduce the number of officers and en-
ployes thus engaged at present. Tho
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 tC
not only secure economy, but to prevent
senseless and unnecessary forms ol
competition. 1t is Mr.. McLeod's theory
that the industries of Pennsylvania art
now paying fair and reasonable price:
for their fuel, but that the rates now
prevailing at New York, Boston, Chi
eago, in Canada and other distant points
should be so equaliZed that they will
bear proper and just relation to tn,
location of these markets with regard tc
the source of supply.
II is estimated that these changes
taken altogether, will yield net in
crease of at least % cents per ton on al
coal handled by the Consolidated Read
ing System, and without costing tn,
consumer one penny more than at pres
ent, except at such places as the pro
duct of their mines is now sold at actua
. loss.
AN ENORMOUS TONNAGE.
AS the tonnage Of the three com
"