The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1893-10-24
NEW COAL C0MBIN B
Effect of the Jersey Cen
trails Control of the
D., L. & W. R. R.
THE VANDERBILT INTERESTS.
Can the Courts Break 1t Up, or
Win the Barons Attempt 10
Force Prices Higher2
THE VANDERBILT INTERESTS.

lions that they have recently made of the
still bigger deal, Of which the above is
but a link in the chain.
The Vanderbilts also have obtained a
a strong foothold in the Lackawanna
road. and while some claimed yesterday
that they had. quietly secured absolute
control, the best Information is that the
Jersey Central and Vanderbilt people
have a complete understanding and pos
sibly formed q deal to divide the control
between them, which, 1t is ed, they
can readily do.
1t was announced at about one o'cl oc K
yesterday that about 40. 900 shares Of the
Lackawanna Company, which had APP
parently been accumulated by a pro mi
nent brokerage firm. had been tran a.
ferred to Mr.. William K. Vanderbilt on
the books OF the railroad
Shortly after it became known that other
big blocks OF stock either had changed
hands or would soon change hands. 1t
could not be ascertained definitely who
the owners or buyers of the stock were, but
several names were mentioned, anon
them bofng the New York Life Insurance
Company. 1t was reported that Mr.. w.
&. Vanderbilt had bought out their hold
ings, thus obtaining upward of one hun
die shares and representing the largest
Individual interest in the road.
CHANGE IN LACKAWANA MANAGE MENT.
These latter transfers are believed To be
very likely, but the fact remains to be
confirmed. Information was refused ut
Mr.. VanderDilt's office at the Grand
Central Station yesterday. 1t Is pretty
generally believed that the 40. 900 shares
Of stock TINT were transferred yesterday
came from Mr.. Wiliiam Rockefeller, who
is turning his attention largely to the
New York, New Haven and Hartford
Railroads enlarged system.
Coiucident with the announcement Of
the news there wers sharp advances GU
tho Stock Exchange, Jersey Central adj
yaucing from liz 1-8 at the opening to
l20 IL. and Lackawanna fl ON 161 TO
lit 1.2. Delaware an Hud5 on s, sock ad.
vanced to l29 anu Reading to 81 All
Of these stocks reacted somewhat except
Reading. which closed at the highest.
President Samuel Sloan of the Della
ware, Lackawauna aud Western denied
all knowledge of those extensive changes
in The holdings of stock. just as ne did Il
year aud II half ago, when the Jersey
Central interest and McLeod's frienus
acquired enough interest In the Lacka,
wanna to make Mr.. Sloan accept the
conditions Of the Reading coal "com-
bine," 1t was bel eyed at that time that
a change might have been brought about
In che ID. nagement, but Mr.. Sloan de,
cided TO joiu their cause aud 10 sup, ort
them III the Conduct of the coal business.
Mr.. Sloan said yesterday that he was in
utter ignorance Of any deal, and lie re-
ferred inquiries to Tie Jer,ey Central
people.
President Geor ge F, Baker and the
other FIRST National Bank people who
nre credited with hnving the largest in~
terest III the New Jersey Contra, except
possibly the MaxwelIs, repeatel the
deuials that they made ten days
ago, that they had not materially
Increased their holdings in the
Lackawanna Company for tue past elgh-
teen months. President j. Z. Maxwell,
of the New Jersey Central, said the same
thug, but he admitted that there was an
important deal between the New Jersey
Central and IIackawauna, and. while ne
didn'G like to call il "controiling" the
Lackawanna. he evidently meant that
there would be a revolution In the man
agement of the Lackawanna whereby it
would be subservient TO the interests of
tie New jersey Central aud the Wander
bits. This does not necessarily mean
thai Mr., Sloan will retire. but that,
whether he remains or not, Their. will be
a radical chang of policy.
WHERE H v~ANDERBILTs COME IN.
Mr.. Maxwell made a significant adj
mission yesterday when he said that he
was largely instrumental in inducing
| Mr.. w. K. Vanderbilt to enter the
Lackawanna Company.
fhe result OF this new alliance will be
far reaching. There are mauifestly two
| great ends to be accomplished. While
the Jersey Central people want the use
Of n through line to Buffalo. which they
| can in a measure control, their supreme
| object is to build up a new coal combiua-
tion which viii be stronger and more
elastic in every way than the famous
organization hat was smashed BY the
courts. They are proceeding on an alto
gether different principle this time.
There will probably pe no leases. but
they will establish u community OF iu&
rerests by the acquisition of large blocks
of stock in the companies to be con-
trolled.
The scheme of the New Jersey Central
ana Lehigh Valley has been ! to shackls
the Reading and get 1t under their con>
troll. with a view to forming a secure
| basis for the proposed new coal combina-
| tion-for no coal combination would be a
| success without a defiuiee undetstaudiag
about the regulation of the Reading.
| There is good ground for believing that
| such control OF the Reading by the Jersey
| Central and possibly the Lshigh Valley
aud Vanderbilt interests, has already
been ACQUIRED. SO That it will soon be
| clear just how the stock will be voted at
| the annual meeting of the Reading In
January.
E GOA COMBINE.
If the control of Reading stock-whIch
could havs been bought very cheap in the
open market-has thus been acquired it
was undoubtedly done with a view to
carrying out the details of the new alii-
auce, a part of which came to light yes
terday, aud iG goes to show how intimate
will be the community of interests 10 the
| big new combination of the coal roads.
On the one hand there will be the Jersey
| Central aud Lehigh Valley aud GU the
other the Delaware, Lfckawanna &
| Western and Delaware g. Hudson, in
both of which The Vanderbilt interest IS
now very strong; while between them
will be the Reading. controlled either by
both or perhaps only one of the previous
groups. The interests will be further
knit together by the strong hold Of thu
| Jersey Central In the Lackawanna
Board of Directors.
All thisi is very significant and import
ant as showing that IN the coming coal
combine" the structure Will De impreg-
nable that the courts cannot break it up.
to grind the pubic with high prices, as In
the days of Mcleod. is to legislate against
the rights of d monopoly to make exor.
bi5nnt rates. This would likely be a
prolongei struggle. aud the chances of
the public getting any satisfaction might
be very small.
&ut a significant fact in this connection
ia the purpose of the Vanderbilts to take
a more active part In the coal trade, from
which they have heretofore stood nloof
y III A great measure. 1t ia a question