The sun. [volume] (New York [N.Y.]) 1833-1916, 1892-02-11
THE GREATDEA ANNOUNCED
TIE BIGGEST RAILROAD COMBINATION
EYER EFFECTED IN THIS COUNTRY.

Readisg Leases the Lehigh VALLEY and
Jersey Central. and Gets Control OF the
Delaware. Lsekawanna and Western,
Beeosisg Master or the Anthracite Coal
sitsatioa--A Coal Combination with the
Voting Power In the Hands OF Dre xei,
Morgan n Co.. who Represent or Are
Friendly, At Least, TO Vanderbilt Inter-
ests-Means millions to the Coal Roads.
Tho details OF the great deal between the
anthracite coal-carrying and coalproducing
railroad companies were officially announced
yesterday by Mr.. J. Pierpont Morgan OF the
firm Of Drexel. Morgan 4 Co. A coal combina-
ton. or as some call 1t. trust. has
been formed by enough Of the roads to con-
, troll the output and prices. regardless Of what
the other companies may say. Mr.. Morgan.
however. In describing tho arrangement did
not use tho word trust"
Tho deal was effected first, by the lease OF tho
Lehigh Valley Railroad and Central Railroad OF
New Jersey to the Philadelphia and Reading
Railroad at guaranteed ratio Of interest. or.
rather. what amounts to tho same thing as
lease. as will be explained later: secondly by
! chs acquisition Of enough OF tho stock Of the
Delaware Lackawanna and Western Railroad
to control that company. and mako 1t SUBJ
servient to tho coal combination. Those arc
the principal railroads In the consolidation. It
wAs sAid chat other coal railroads. including
tho Delaware and Hudson and Pennsylvania
coal interests were included. but these are
not necessary for tho control Of the coal trade.
and reporter obtained Information yester-
DAT that they were as ignorant Of the deal as
che, public until It was announced.
ASH consolidation Of the leading anthracite
coal railroad companies 1t Is mammoth
DEAL. Mr.. Morgan yesterday called it the great
est railroad deal that had evor been effected
In this country. But many people have con-
atrued It to mean far moro. They look upon
Il as the browning achievement Of the Wander
, bits The idea is that thoy to-day control the
Philadelphia and Reading system through
Drexel. Morgan l. Co.. and hence the Van
derbilts. through the Readings latest deal.
=. will now dictate the policy OF tho Jersey Cen
trial. Lehigh Valley. Delaware. Lackawanns
and Western. Poughkeepsie Bridge system.
and. In fact. all tho various lines which are
embraced In the new coal consolidation.
Hence tho Vanderbilts have the anthracite
8, coal situation In their hands and furthermore.
they will be able to pursue vigorous policy
that will be humiliating to the Pennsylvania
people. and will really place the latter ut tho
footstooi 1.-THE vanderbilts.
How mu,a OF this elaborate theory Is true
will a. further 1t is true that the deal
will DO Of lnsstlmable value to the Vanderbilt
bring the Vanderbilt roads into new territory.
and. II they do not really control the Readings
now enormous systcm their influence with 1t
IL so powerful that they will derive practically
the same benefits.
The official statement that was made yes
teriay by Messrs- Drexel. Morgan Co. was us
:, follows:
The Philadelphia and Reading Railroad
4 Company has secured by lease or similar ar
sngement control Of the Lchigh Valley Rail-
I. road Company and the Central Railrond Com.
pany Of New Jersey. The Readng guarantees
on the Letigh Valley stock dividends at the
rate OF per cent per annum until July l.
1882 U per cent for one year afterward. or un-
I'll July !. 1858, and per cent per annum
after the latter date. The excess OF earnings.
ifany, above per cent will be divided equally
between the Lehigh Valley and tho Reading
companies until the Lehigh Valley receives 10
par cent. dividends. The surplus above such
i 10 Per cent will then 20 to the Reading. e..
$ "."The Reading guarantees on tho Jersey
Z Central stock per cent. oil excess over
and above that figure to be divided equally
between the Jersey Central and Reading COM
asa Hssro will b. on. central agency or sales
department AZ these companies control
20 Per cent n tS q the f3mPettye ta
trade L pro sss to bs
ssSSissn = bas out the se0no
lease q similar infringement ;" that tie Read
contrary to the laws OF Fehnsyivania. and. as
IT mater Of fact. the sgreement as signed on
gan 4 Co. securities enough to cover the
On ss tS Re Ssrs ss sS
ssa % gnfh to 1h it.
6y the arranpement the stock OF tho Jersev
sn %hcs sn z hsd the 6Ssa
y Morgan 4, Go. who vote the, proxy in the in.
3 tsrSst Of the syndicate. and nominate con
telling Sat1aps number In the several Boards OF d.
=, rs understood that the management Of both
siss % 1 Tie Raadins mRn
AND % shssssfS Rssas BY
Mcleod 81 the Readine vii! Be- the e rnns
bore that H. Mcieoi took lesdin ss part aff IN
gan Coz q course also had good deal to do
sii' Tfi siISf 0$s Z SiI Tie
RIsae L. IN and NJ h"wber Wslsh had some
the control Of the entire combination Of roads
snd Goa, properties is placed IL the hands Of
q mpeh to say about II as an ybody.
that
pAny was q necessary factor in order to con.
tsol the coal situation, and the only feasible
Frssident Sloan Is known w' to o. be opposed ' to
oohsoiidati9ns or trusts; and. lest the scheme
that road also 70 the Reading it was decided
obe more feasible to acquire stock control.
wanna stock during, the past few days Mr.;
Sloan Is said to have been ignorant OF the real
character OF the deal or he might have tried to
forestall It.
The Vanderbilts, as well as friends Of the
eradicate. have also been heavy buyers Of
4 and which q the two parties have control is a
Silts really control the entire eonsoIldation
through DEsxel. Morgan Co. y doesn't mat
stock to dictate to Mr. Sloan. so TINT the Lack
eEanna will act In harmony with the com.
1nAtton. 1t was reported yesterday that
there were likely to bs numerous changes In
and Vanderbilt interests.
Those who are interested In big figures esti-
T. nate the capitalization Of the coal interests.
Rt UPWARD Of S3OO.OlN,OuO. The cnul rnads