Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-10-23
JERSEY cENTRAL's BIG DEAL.


w. Purchased.
The capitalists who own the New Jer-
sey Central railroad have about secured
control of the Delaware, Lackawanna
and Western, and at the next annual meet
ing. in February, will enter into complete
possession. In the last four weeks the
stock has advanced from 40 to 1eO on the
final purchases in the open market of the
stock that was deemed necessary to get
absolute control
The Lackawanna stock owned by the late
Charles Pratt, the deceased Long Island
oil magnate. has already passed into the
possession of President Maxwell and his
associates, and they originally owned a
considerable block of the stock purchased
at the time of the Mcleod deal a year and
a half ago. With their recent purchases
they thus control a very considerable por-
ton of the capital stock which is only
s26. 20o,cOO. Besides this they have the sup
port of some of the present directors of the
company, sufficient to cause an entire
change of management i'm February next.
What the scheme is.
The program of the New Jersey Central
people, according to a recognized authority
in Philadelphia, is to still further strengthen
their hold on the property by the distri-
button Of a 100 per cent stock dividend as
soon AZ they get into power. As the stock
is held in small blocks the issue of so many
additional shares would naturally increase
the power of the large holders and in
trench them in control almost beyond pos
sibility of disturbance. The dividend can
properly be made as a return to holders
of net earnings that have been expended
upon the property.
Jersey Centrars Position.
Whether the Lackawanna stock that has
been bought will be transferred to the
New Jersey Central or will be held by Pres
ident Maxwell and his friends and a traffic
contract made between the two roads, has
not been disclosed as yet, but the two
properties will be mos. intimately con-
nected. The New Jersey Central syndicate
have long felt that their property was
merely terminus without a railroad, while
the l.ackawanna was a railroad without a
terminus, and that il would be to the ad-
vantage of both to become intimately con-
nected. The New Jersey Central could
then utilize its valuable terminals in Jer-
sey City, which are now lying idle because
of lack of business, while at the same time
the Lackawanna would be able to become
great trunk line, which 1t cannot now
because of lack of room at Hoboken to
handle it's traffic.
Ever since Mr.. Maxwell and his friends
secured control of the New Jersey Central
they have been diligently trying to form
some connection that would give their road
an important reliable business The COM
pany owns magnificent terminals on New
York bay, but that is about all.
Jersey CentraIs Connections.
Its line i'm southern New Jersey produces
little profit as its traffic is very light, while
there Is almost nothing except passenger
business on the seventy-three miles be-
tween Jersey City and Phillipsburg Its
paying traffic is derived from its connec-
tons. The Reading joins it at Bound Brook
and delivers over to it very handsome
business. but the Central only gets a haul
of thifty-three miles on this traffic. and
moreover. ii is within the power of the
Reading to turn it all over to the Lehigh
Valley or the Pennsy Ivania. Its coal BUSH
ness all comes over the Lehigh and Susaue-
mamma railroad, which is owned by the
Lehigh Navigation Company, and is leased
Dy the Jersey at a rental of one-third of
the gross receipts. This arrangement is a
very profitable one to the Lehigh Naviga-
ton, but the cost of operating the road is
SO great that the Central makes almost
nothing out of it, Time and again success
siye arrangements of the Central have
endeavored to buy enough Lehigh Naviga-
ton stock to enable them to have a new
lease made on easier terms, but the stock
Is so widely distributed that they have
never been able to buy more than an in
considerable proportion.