Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-10-24
JERSEY CENTRAL'S DEAL.
What the Combination of the Coal
Roads Means.

What the Combination Of the Coal
Roads Means.
The purchase Of Lackawanna stock by
persons friendly to the New Jersey Central
road is claimed by the Philadelphia In
quirer to be only one feature Of a great
plan that proposes the operation of the an
thracite roads In harmony with the Wander
bilts. The Vanderbilts expect to get the
west-bound through trafic Of the Lacka-
wanna for their Lake Shore road. while
turning over to the Jersey Central the
through business that now goes to Hobo.
ken. But besides this the whole anthra-
cite system will be worked together.
1t appears that the vanderbilts. Jersey
Central people and the Drexel interest
have united in a scheme to carry out the
Ideas of Mr.. Mcleod that found expression
In the great Reading deal Of February,
1892. The same coal companies are includ-
ed. namely. the Reading Jersey Central,
Lehlgh Valley. Delaware. Lackawanna and
Western and the Delaware and Hudson.
These five companies produce q per cent OF
the total anthracite output. and the owner
snip Is so concentrated that control Of all
" vested In a few men.
Inc Lackawanna is now controlled by the
Jersey Central and Vanderbilt interests.
The Vanderbilts now have four seats N
the delaware and Hudson directory, and
own enough stock in connection with their
allies to dictate its policy.
Inc Reading road Is owned by stock
brokers. from the showing OF the transit En-
books, but the Vanderbilts are Understood
to be considerable holders of the stock
1 ne policy OF every management of the
property has been to affiliate with any
party that will maintain the price of coal
OF which the Reading is the largest pro-
ducer.
The Lehigh Valley is controlled by the
Packer estate. but since the conclusion OF
negotiations for the purchase of coal from
individual operators is necessarily in favor
OF higher coal prices. 1t will be remem-
bered. too. the New Jersey Central syndi-
cate subscribed $4,000 to the 81, OOO, ono bond
pool formed by individual operators.
The deal Is entirely different from that
projected by Mr.. Mcleod, which had for
its purpose the ACKNOWLEDGMENT of the Read.
Ing company. The present movement con-
templates the ACKNOWLEDGMENT Of the mem.
bers Of the syndicate who have bought the
stocks of the various coal roads.
In this respect 1t is somewhat similar to
the scheme proposed by the late F. B.
Gowen to Mr.. William H. Vanderbilt. Mr..
Vanderbilt bought 10000 shares of Read
ing stock, and the New Jersey Central was
then leased to the Reading Mr. Wander
bilt also bought largely Of Delaware. Lack
awanna and Western and Delaware and
Hudson stock: The break down Of the
Reading in 1884 disguised Mr.. Vanderbilt
with the whole business. and he unloaded
everything at heavy loss.
The active managers of the present move
ment are understood to be the New Jersey
Central party. The future policy Of the
coal trade will be dictated from that office
The Vanderbilts. who are more especially
interested in preserving trunk line rates,
will be allowed to dictate the policy of the
combine as regards that business.
Forty thousand shares Of the stock Of the
road were yesterday transferred to the
name Of william X. Vanderbilt 1t Is said
that he owns about 100000 more shares
which would be formally put in his name
The Lackawanna has been a source OF
trouble to the Vanderbilt system ever since
its extension to Buffalo was opened by rea.
son of its cutting rates to obtain business
Three years ago it made a contract with
the Nickel Plate. one Of the Vanderbilt
lines. whereby the Nickel Plate was to be
its connection to Chicago. Later the Lack.
awanna was offered better terms by the
Grand Trunk railway Of Canada and di.
verted business to that road. The Wander
bilts were angered and took revenge by
buying up the Lackawanna- The Wander
bits now practically have at their mercy
| the Canadian roads. which have ALWAYS
been rate disturbers. The only way IL
which the Canadian roads can hereafte,
| get into the United States. except on term,
named nv the Vanderbilts. is by the LIE
| high Valley. which. however reaches New
| York over the tracks Of the Jersey Central