Evening star. [volume] (Washington, D.C.) 1854-1972, 1892-02-11
M'LEOD's MASTER STROKE
Effect OF the Alliance Of the Three Great Cos
Roads.


Encct Of the Alllance of the Three Great Goa
| Roads.
| President Mcleod of the Reading railva,
gave representative Of the press the followins
Information last evening:
/ THE arrangements that for some time have
been in process, designed to place the coal.
producing and carrying interests upon more
| equitable foundation, have been COMPLETED.
The primary object in view has been to secure
| more economical management in the coal trade
| by avoiding expensive selling agencies and
heavy commissions, SO that, while coal will not
cost any more to the consumers, the coal
producers and carriers can get better results
and secure profits by saving expenses The
combination and complex agreements hereto
fore made have been generally found made
quate to accomplish the object sought, as the
binding force was insufficient
HOW THE DEAL WAS MADE
THE voting trust now holding the stock Of
the Philadelphia and Reading railroad will
shortly expire, and the control Of the stock of
that company has passed already into hands
mat are friendly to the present Reading man
agement Ihe Reading railroad has bv lease
acquired control Of the Lehigh Valley road A
corporation IN the state OF New Jersey the
Fort Heading railroad (which is under Reading
management, has by lease acquired control Of
the Central railroad OF New Jersey. This
practically places In my hands the conduct of
she affairs OF the Reading, Lehigh Valley and
New Jersey Central railroads. and also Through
the latter the I.ehigh and Susquehanna rail-
road OF the Lehigh Navigation Company.
Under the lenses there will be raid guar
anteed dividend of per cent per annum upon
the STOCK OF the Central railroad of New Jersey
anu q guaranteed dividend upon the stock of
the Lehlgh Valley railroad at gradually incress-
ing rates-5 per cent per annum until May 81
next, then 6 per cent per anrum for the half
year until November so, and afterward z per
cent per annum. In each case il is provided
'hat the net surplus earnings OF the respective
companies, ii any. beyond the above guar
ahteed rates OF dividend shall be divided be-
tween lessor and lessee until the lessors share
reaches, with the guaranteed rate. total of 10
per cent per apnum.
BEsEFITs OF THE NEW ARRANGEMENTS,
The great benefits of the new ARRANGEMENTS
are obvious. In addition to the splendid Read
ing terminals now constructing in Philadelphia
the Reading will acquire the magnificent ter
minais OF the Lehigh Valley and New Jersey
central on New York harbor. Through the
Lehlgh Valleys new western extension there
WliI De provided a direct route to the lakes ut
Bunai0. with spacious terminal there The
benefits thus accruing through the encourage
Ihent OF competitive merchandise traffic be-
tween the great west and Philadelphia by lake
and ran, as well as by the northern .all-rail
routes. VIII be OF great advantage to the city
Ihey VIII tend to carry out in the fullest degree
anu under most capable management, for for
elgn as well as local trade. the ideas long urged
by our enterprising merchants.
SAVING EXPENSES IN THE COAL TRADE.
I'm the carrying on of the coal trade the saw
ing in commissions, agency expenses and the
economies of the traffic under the new arrange
ments are expected to reach several millions of
dollars annually, divided among the various
railroads interested. When it is further known
that the Delaware, Lackawanna and Weftern
railroad has passed into hands that are friendly
lie will recognize that the new arrangements
Will tend to secure harmony in the coal trade,
ana by saving unnecessary expenses and pro-
noting economics throughout the various rail-
way systems concerned will make more stable
values for coal company securities, without
adding to the cost Of coal to the consumer.
The financial arrangements herein out
lined have the active support and cooperation
OF A. j. Drexel, j. Pierrepont Morgan and ].
Lowber WEIGH, and also of j. Rogers Maxwell
and Geo. F. Baker of the New Jersey Central
management. The latter gentlemen and their
friends have become the largest holders of
Lackawanna stock"
President Mcleod animated that he would
surround himself with strong railway organ.
lzation to assist in conducting the business of
purpose would select some of the best men in
the various railroads now coming under his
charge.
FURTHER DEALS PROBABLE.
The Philadelphia Times says: But even this
does not mark the completion of President Nc
Leod's achievement. 1t was said officially at
Reading headquarters late yesterday afternoon
that not even one competitor was to be left in
the field to combat the Readings monopoly of
the anthracite coal trade. This means. il it
means any thing, that interests friendly to the
Reading have secured control of the Delaware
Lackawanna and Western and of the Delaware
and Hudson. In regard to the latter road no
one could be found in position to know the
truth who would confirm the rumor
That 1t is true in the case of the Lackawanna.
however, was tacitly admitted by President Nc
I.eod who placed the date when such control
would be assumed on February 20. He stated
also that on this date the Reading would con-
troll not less than IS per cent OF the total an
thracite coal output and would be absolutely
master Of the situation.
With the new lines the Reading is one of the
largest railroad systems in the world. 1t rep
resents 5000, 900 of capital and its earnings
for next year are estimated to be not less than
Sc0, 1000. Its employees will number 100. 900,
being more than are carried on the pay roll of
any single corporation in the world.