New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-02-11

Railroad Of NewJersey. This practically places IN III.
Reading company's hands the conduct Oh tho a""'''
tho Reading Inhich Valley and New-Jersey Central
Railroads and also Through the latter the Lehigh ana
susouehanna Railroad Of the Lehgh Navigation Conf
pany.
Under the leases guaranteed divloeho oi POI
cent per annum will be paid upon tie s'ooh Vi VI.
rentraI Railroad OF New-Jersey and guTan"eu
dividend on the stock Of the Lehigh valley ha'io"i
AZ gradually increasing rates. per cent per ahhu"i
until Nav 81 next then per cent per anhuih io ''
halfyear until November 80. and aiter"au : w
cent per annum. In each case II Is proViuou t'
the net surplus earnings Of the respective i.s
~ anv beyond the above guaranteed rates VI ui ~,
shah be divided between the lessor ana Co. NV
IN, lessons share reaches, with the guarah'cVu '
a total of 10 per cent per annum. u
"Tbe Great benefits OF the new Arrangement arc
obvious In addition TO the splendid Keaolns 10 MINI
now constructing in Philadelphia, the heau,"e wa,
aoouire the fine terminals Of the Lehig" N"'o' az"
New Jersey Central In New-York Harbor Ihrouen 'no
Iehjeh Valleys new Western extension therc WIN 10
provided q direct route to the lakes al buna'o' Wv"
spacious terminal there. The dement's 'hus A'ou"e
through the encouragement Of competitive merohSnu'so
traffic between the great West and Philadepha oS "ne
and rail as we'll AS by the Northern aiaii ROUTES W"
he OF great advantage to the city They VIII 'enu "
carry ont in the fullest degree and under most capture
MANAGEMENT for foreign we'll as iochi 'i""0' '"'
idea long urged by our enterpnsing meichan's. T.,
comm,sson, agency expenses and the economies Oh e
,ara. rnder The new Arrangements are expected to
reocb several lions of dollars annually divaoo among
the various railroad companies interesteo' WHOM
further known that tho control OF the Deaware La'A
wanna and Western Railroad has passed ih'o haloS
that are friendly Reading management the ihvestS
nubic will recognize that the new arrangements VIII
t.nN n secure harmony In the coal trade and by saw
Ing unnecessary expenses and promoting economies
throughout the various railway systems concerned, VIII
make more stable values for coal companies Secun'''
without adding to tho cost Of coal TO the consumer
1.-THE financial arrangements herein outlined nave
the active support and cooperation OF A. D. Drexei %
perpont Morgan and J. Lowber Welsh, and also D.
Rogers Maxwell and George Il. Baker, OF the NEWER
sey Central management. The latter gentlemen anu
their friends have become the largest holders OF LacHa
wanna stock"
this evening: -
The Reading Railroad Company will pay diva
aend on its stock this year. Its net earnings VIII H.
crease 81 100000 during the next twelve moh'is'
The Reading Railroad Company now controls by lease
for 900 years the Lefdgh Valley and the jersey Zen
trail railroads and February 90 the Delaware LacKa-
wanna and Western will be controlled In the interest
of the Reading. The Reading Company and Its leased
lines now represents 5000 10000 Of capital ana is
earnings will amount TO SSO0OO,OOO year."
1.-The Jersey Central earned last year 10 "a per
cent, so that the Reading Will get a pront on tinS
lease from the start. ASIDE from o'hor oo"siuoi"
lions to be mentioned later which will Affect the
earnings Of these two companies equally, ffesioeit
Mcleod is confident that the Lehgh Valley, aiter
May l. when its new line will be completed, is GER
TAIN on its own merits, TO earn more thah ue i'i'
amount of the guarantee, wholly regaruless Oh any
benefits which its revenues may derive from the new
relations between the three companies II should
be remembered that the Lehgh Valley Is now paying
the Erie 81 100000 annually for trackaee' sum
equivalent to per It's capital stock, ana the
Lehigh Valley makes net gain of this amount WHICH,
added " the five per cent the company Is now pay
Ing will provide for the Z per cent guarantee ana
leave a surplus of per cent. In addton 10 this, 'o
Buffalo and Lake Erie traffic OF all these lines VIII W
thrown to the Lehigh Valley 1t Will thus DO
seen that President Mcleod has made an uncommon!
good bargain.
at Ia Mr. McLeod's theory that the Industries OF
Pennsylvania paying fair and reasonable P1oo.
for their fuel but that the rates now prevahlhs III
New-York, Boston, Chicago, in Canada ano otner eh-
tant points should be equahZed That they VIII oo"
n proper and Just relation to the location OF these
markets with regard to the source OF supply. Ah's
will give the industries OF Pennsylvania their proper
advantage over those Of distant points when nave
their own advantages Of location and which now operate
against Pennsylvania because. In addition to such ad
yantages Of location they have those Of equal prices
for fuel also. This Is wrong which viii be nghteo
is estimated that these changes, taken tosether VIII
yield new increase of at least 20 Genus Oh
all coal handled by tne cOtSoLuateo
and without costing the consumer one penny moro the
at present. except such places as the product OF
their mines Is now sold at actual loss ,.
the tonnage of the three companies, exclusive
OF the Delaware Lackawanna and Western. aggregates
about "a 900 600 annually, this single item means
net gain OF SG,OO0,OOO The Readings present ton.
mage Of 900 boo will give increased revenue OF
S25OOOOO Under the terms Of the leases and con
tracts the increased profit from this source OF me
Other companies will be divided equally between the
respective earning companies and the Reading, giving
the latter additional profit of $175000O, so that from
this source alone the Readings net revenues VIII Dc
increased BY the tidy sum Of four and one-quarter
millions annually. This means dividend on Reading
stock this year. Nor is this the end Of President
McIeod's achievement. The absorption OF the LealSa
Valley and NewJersey Central still left in the ned
one competitor of no inconSiderabe importance the
Delaware, Lackawanna and Western. Ii can be con.
dently stated that the Lackawanna management VIII
be so changed to bring its policy into entire accord
with that of the trpartite alliance, and II VIII tRere-
after act in close harmony with the Reading.
1T Is now plain what was In Mr.. McLeod's mind
when le acquired the Poughkeepse Bridge and the
lines tributary thereto wlc, throw the Reading and
It's entire augmented system into the heart OF
New England, giving 1t the only all rail- route from
the Middle and southern states TO the East. With con
ncctions with all important New England roads. and
enabling virtually to control the coal traffic OF that
entire region