The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1893-10-23
CHN7RAL'S MOVE
Endeavoring to Gain Con-
troll of the D. L. & W.
Railroad. :
THE PLANS ALMOST COMPLETED.
The Benefits That viii, Accrue 10
Both Companies If the
Scheme is Successful.

The capitalists who own the New Jer-
sey Central Railroad have almost Sc
cured control of the Delaware, Lacka
wanna and Western. and at the mex
annual meeting. In February, will ente,
into complete possession.
The stock has advanced ia the las,
four weeks from 140 to 100 on the ipa.
stock hat were deemed necessary to gel
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.
aud they originally owned a considerable
block of the stock purchased az the time
of the Mcleod deal a year and a half
ago. With their recent purchases they
b q control a very considerable portion
OF the capital stock, which is only
$26. 200, 600.
Besides this they have the support Of
some of the present. directors OF the cons
pany sufficient to cause an entire change
OF management in February next. The
programme of the New Jersey Central
peopie. according to a recognized author
ity, Is to still further strengthen their
hold on the property 10y the distribution
OF n one hundred per crDt stock dividend
as soon as they get in power.
HELD IN SMALL BLOCKS.
b AS the stock is held 10 small blocks the
Issue of SO many additional shares wonld
naturally increase the power of the large
holders and intrench them in control al.
most beyopd possibility of disturbance.
Tn dividend can properly bs made as a
return to holders of net eurnlugs that
have been expended upon the property.
Since 1888 all additions. extensions and
improvements have been paid for Of
net earnings, md even after these pay
nlents aud the distribution of seven or
eight Ies cent in anuuai dividends, Il
considerable sum has been carried for.
ward annually TO the profit ano loss ac-
count. As9aaH MI
No stock dividends have been made
since 1864, when fifty per eeut. was de-
clared, with the single exception Of 1866,
when ten per o more was parcelle !!
out. The company has practically No
bonded debt, while its leased lines are SO
profitable That 1t eau easily earn q hand
some return on Its doubled c~apitaliza-
ton. ~
Whether the L~ackawanna stock that
has been bought Will bs transterrel TO
the New Jersey Central or will bs held
by President Maxwell and his friends
aud u traffic contract made between the
two roads has not been disclosed as yet,
but the two properties will be most inti-
nately conueeted. The New Jersey
Central syndicate have long felt that
their property was merely q terminus
without a railroad, while the Lac ka-
wanna was n railroad without d termi-
nus, aud that It would be to the advan-
tage OF both to become Intimately eon~
nected.
USE ITS TERMINALS.
The Jersey Central could then utilize
its valuable terminals in Jersey City,
which are now lying idle because OF lack
of business, while at the same time the
Lackawanna would be able TO become a
great trunk line, which 1t cannot be now
because Of lack of room la Hoboken to
handle It's traffic. Ever since Mr.. Max
well aud his friends secured control oil
the New Jersey Central they have been
diligently trying to form some connection
that would give their road az important,
reliable business. The owns
magnificent terminals on New York Bay.
but that is about all.
Its line Ia southern New Jersey pro-
duces little profits, as it's traffic is very
light, while there Is almost nothing ex.
cept passenger business on the seventy
three miles between jersey City and
Pnflipsburg. Its paying traffic is de-
rived from its connections. The Reading
joins IL at Bound Brook and delivers over
to IL q We y handsome business, but the
Central only gets q haul of thirty three
mlles on this traffic, and. moreover, it is
within the power Of the Reading to turn
y all over to the Lehigh Valley or the
Pennsylvania.
COAL BUSINESS HAMPERED. "
Its coal busiuess all eunles over the Tia.