The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1892-02-11
COAL WON'T ADVANCE
In Fact, Readings Big Deal
May Cheaper The
Commodity.
DETAILS OF THE ORGANIZATION
Evidently the Most StupendOus
Combination Of Modern Times
President McLeOd's Plan.
The Central and Lehigh Valley Rail-
ways Absorbed and D., L. & W.
Made an Ally.
DETAILS OF THE ORGANIZATION
BIG WALL STREET BOOM

Further details of the big railway deal
announced in The NEWS yesterday go to
sustain the statement that it would
prove the most gigantic operation Of the
age. Yesterdays statements regarding
the transaction are supplemented today
by particulars from President Mcleod of
the Reading. who outlines his general
plan as follows:-
"The voting trust now holding the
stock of the Philadelphia and Reading
Railroad will shortly expire, and the con
troll 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 LIE high
Valley Railroad. A corporation in the
State of New Jersey, the Port Reading
Railioad (Which is under Reading man
agement), has by lease acquired control
of the Centr al Railroad of New Jersey
This practically places in the Read ing
Company's hands the conduct of tn G
affairs Of the Reading, Lehigh Valley
and New Jersey Central Railroads. and
also (through the latter) the Lehign an d
Susquehanna Railroad of the Lehigh
Navigation Company.
"Unuer the leases they will be paid a
guaranteed dividend of Z per cent.
per annum upon the stock Of the Central
Railroad of New Jersey, and guaranteed
dividend on the stock OF the Lehigh VAL
ley Railroad at gradually increasing rates,
s. per cent. per annum until May 81 next,
then per cent. per annum for the half
year until November 80, and afterward z
per cent per annum. 1t each case 1t Is
provided that the net surplus earnings of
The respective companies, il any, beyond
the above guaranteed rates of dividend,
shall be divided between lessor and
lessee until the lessons share reaches,
with the guaranteed rate, total OF ~
per cent. per annum.
LARGE SAVINGS EXPECTED.
"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
to the lakes at Buffalo. with spacious
terminal there. The benefits thus accru-
ing through the ENCOURAGEMENT of COM
petitive merchandise traffic between the
great West and Philadelphia bv lake and
rail. as well as by the Northern ALI Rail-
routes. will be of great advantage. They
will tend to carry out in the fullest de-
gree and under most capable manage
ment. for foreign as we'll us local trade,
the idea long urged by the merchants OF
Philadelphia
I'm the carrying on Of the coal trade
the saving in commissions, agency ex-
pences 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 and Western Rail-
road has passed into hands that are
friendly to Reading management, the in
vesting public will recognize the new
arrangements will tend to secure har-
mony in the coal trade, aha by saving
unnecessary expenses and promoting
economy throughout the various railway
systems concerned will make more stable
values for coal companies securities with
out adding to the cost OF coal TO the con-
sumer.
1.-The financial arrangement herein out
lined has the active support and cooper
alton of A. j. Drexel, j. Pierpont Nor
gan. j. Lowber Welsh, and also j. Rogers
Maxwell and George p. Baker, of the
New jersey Central management. The
latter gentlemen aud their friends have
become the largest holders OF Lackawanna
stock"
READING IN GLOVER.
The days of Readings financial troubles
seem to be at an end. The company now
controls ~ per cent, of the anthracite coal
production and hereafter will be absolute
master of the situation. By this COM
bination the net receipts for anthracite
coal will be at least twenty-five cents
per ton greater than during the last
year.
Aside from other considerations, Presi
dent Mcleod is confident that the Lehigh
Valley after May /, when its new line to
Buffalo will be completed, is certain Il
its own merits TO earn more than the full
amount of the guarantee wholly regard
less of any benefit which its revenue may
derive from the new relations between
the three companies. IL should be
remembered that the Lehigh Valley is
now paying the Erie 81, 100000 annually
for trackage, sum equivalent to per
cent on its 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 per cent. guarantee aud leave Il
surplus of l per cent In addition to
this the Buffalo and lake traffic of all
these lines will be thrown over the Lehigh
Valley.
WILL REvoLUTIoNIzEN COAL TRADE.
it is Mr.. McLeod's conviction, AS it has
been that of well informed and conserva-
tive capitalists for many years past. that
the existing methods OF marketing an
N thrac1te are unDPCeSSttrlly CulhDel5oHlo
and expensive. An agreement has been
reached that will completely revolutionize
the old system and result in enormous
savings to the companies 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. The
ioint business of marketing the product
NJ these companies will practically be
controlled by President McLeod's corpor-
alton. and will be conducted so as to not
onIy secure economy, but to prevent
seuseless and unnecessary forms of com
petiton. 1t is Mr.. McLeod's theory that
the industries of Pennsylvania are now
paving fair and reasonable prices for their
New York, Boston. Chicago, in Cauada
and other distant points should be SO
euualized that they will bear proper and
inst relation 10 the location of these mar
ais with regard to the source of supply.
D., L. s. W. IN LINE.
The absorption of the Lehigh Valley
ana New Jersey Central still left in the
field one competitor Of 10 in ons derable
importance, the Delaware LacKawanna