New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-01-11
READING LEASE BROKEN.
ACCENT TO The WITHDRAWAL OF JERSEY
CENTRAL.
u,r,. THE PENNSYLVANIA REAP THE PROFITS
THE COAL COMBINE" FAILURE.

,.,,o agreement between his company the Reading
,a the Port Reading Company. had been abroga,"d
he mutual consent This statement constitutes the
10, noln OF the Question OF the future relations be-
,rcen the Jersey Central and the Reading. The ap-
ruca,ion to the Attorney General of New Jersey by
,,o Icrsey Central to introduce new evidence in his
All, for rcceiv-rshp, showing that the railroad COM
nonv had not been violating the laws OF The State
S.cares that the lease the Reading has been aban
doned as we'll the contracts OF the Lchigh and
,ylkesbarro Coal Company which Is controlled by
,be Jersey Central The separation OF the Lehigh
and W.lkcsbarre from connection with the Reading
was announced I'm The Tribune week ago But
rho announcement on Monday that the Jersey Central
had cancelled the lease to the Reading instantly sug
cested the objection that such contract cannot be
snpued by one party. even II II must be suspended
IN obedience 10 the orders OF court. The official
statement yesterday by Mr.. Maxwell shows that the
Reading Company has voluntarily surrendered It's
claims upon the Jersey Central. and that any new
relations OF stringent nature as lease must be
the subject OF entirely new negotiations.
II is denied by President Maxwell that the
nuling Of the lease means any disturbance OF the
harmonious relations between the Jersey Central and
the Reading lie also denied yesterday that there
was movement contemplated to bring his company
into closer relations with the Pennsylvania Railroad
lie said that the Jersey Central would continue to
work In harmonious traffic relations with both the
Reading and the Pennsylvania and would conduct its
business as a railroad without regard to rival roads
or politics. He said that he did not believe that there
would be any outbreak Of acute competition as q
result OF the change. The jersey Central would
simply follow the market coal, and all the CON-
panies could he prosperous without any excessive ad
vance In the price OF anthracite.
The significance OF the Jersey Centrnl's reestab-
ushment Of independence may not be moderated by
the generous statements made by all Its leading mana
gers With regard TO the Philadelphia and Reading. The
fact that the ahcgaon OF the lease TO the Reading is
approved BY the Reading managers removes the posA-
blity OF Reading demanding a restoration Of jersey
C.n,.als property. In the possibility that the New
Jersey conrts might ultimately approve the validity
Of the Richmond lease. II certainly provides the
basis Of litigation to prevent restoration, which
would be equivalent TO perpetual ,postponement
But mono O, Jersey Central managers expect that
the decision Of the Jersey courts will be aught
bu, On emphatic Gisapproval OF The contract unlaw
ful Tha, President Mcleod OF the Reading should
cons.n, to an abrogaon Of tho lease reflects his doubts
Of his ability 20 hold the jersey Central. even " he
nay intend to press his appeal in the New
Jersey courts.
The disruption Of the coal combination Is believed
hv close observers 70 be complete IL Is true that
the Reading stu holds control Of the Lehgh Valley,
snd ,ha, the management, Of the latter company by
is lessee has ben far beneficial 70 PIE ieNsor
But the moment that the Reading faltsrs In any OF
Its obligations The L.hish Valley may he tempted 10
snder the ties. which. II Is well known. were not
fastened upon II with the entire support Of the tocH
holders.
tn. postlon O, tho Pennsylvania Railroad also be-
cmes subject for interesting study. That company
received a shock when the great Reading deal was
launched with resembling trumpets in Fcbriery 1871
II was forced 10 meet a dozen aggressive movements
On the part OF tho Reading managers. not the least Oh
them being Readings new ncuiSion into The btu
hc.tt
into local ,rafc lis opposition 10 the Reading Com
pany was spurred 20 the utmost and It's nrst supstsh
ual victory lis compelling the Reading 70 rev~'
TO the old basis Of coal tolls which the Reading nso
a-rogan,ly attempted abolish some time ago Fl
nanc,ai circles now ask whether. after the defeat In
the New.Jerscv courts the final severance OF the
lease relations With the Jersey Central the headhg
may not find the Pennsylvania active In Its sbanoohen
feldi The natural alliance OF the Jersey Ceh'rai
With the Reading through SewJerssy Is cohceoen'
But With the Jersey Central Independent. may not the
Pennsylvania seek TO draw II TO itNf IN as many
wsys rs possih. through traffic and coal arrangements
dispatch from Philadelphia received IN Wall street.
Yesterday said The Pennsylvania Railroad u
giving every cncoura 10 the Jersey Central 10
exchange coal AZ EasiDn. Penn. When the Reading
withdrew Is hr.t ari with Pennsylvania In september
the Latter was hard pushed 10 keep Us dealers supplied
I, hoprhf 200 900 tons from the Delaware and Hudson
and ,rc. quanti,ies from the Newiork. susquchanna
nd n
mcHy controlled by Reading and Lehigh Valley have
been filled. and this ilsde The liennsylvsna now
wishes 10 divide with jersey Central
The consumers Of coal rejoice over the breakdown
TIE at mpt Of Reading to corner the price OF All
tmact~. The coal nanng rs say that there VII be M
cutting Il rates IN consequence OF tie scP"fsuoh Z"
J.r..y Central from the Reading. But where, before
M, separaton Reading had the mastery OF about %
pr cent Of he output. II win now be- monarch OF NJ
more than 40 per cent. The difference may not secu
10 b. great but tho result OF lat years deal was thf
tie Delaware, Lnckawanna and western ana the pei"
vsr. and Hudson sold oil the coal they mined, whiE
n. Reading conlIrc- wa, left wit, unsold suppl,
,srunicd ~ the HUNDREDS thousands Of tons IL Is
nm n r"Iori that the Reading t. o'hiucuhg sons
II. nthCia Op,ia Ions Oh the basis oil nrg" s".h y
ans II coal. Ils manecr, wheh III co on, ~ Wv
kr.er pnrt Of the coal pr du oh ,cu ui' III ndi,
n. on n pod ~ Of unr"riced yfoduc'lon ana raiu,
sa,anclng prc = Tue high Price, forced TO, fuich.,
Ouy serVci ~ excite pJpu!ar 'siiur aSllist '' h'u
ing's own plans, While the results OF The coal y'ai
proved thsi he ind" pendent COMPANIES wcr, ao. ;,
3sp~" % their production "nd leave t'e "'"'''- WV
stocks II unsold coal on hand. r.. ~
GOAL men differ ir their opinion. Is 70 The snec' %,
tie rad, nj m. Abandonment Of The E,ahing ai!o
J,r,.y Central combination. some are hci'i"" "
tsReS, that there s. more ~ the brah man ny
psr. On the surface, and that the price Of coal may u
low. red other lriicvo that there will BE- no chang.
hr each cOInpanv wants 10 keep MP The price sui
,h., bel.vr that the dissolution Of Tia leose IS Only
such in name Joseph h. Well, said he would no
care 10 speculate In coal on ID" short eld, ne nv
h.leye that there WAS anv real break In The rei't
uns - the roads. The CONSUMERS Womb know no Gil
ference. . Al.
Warren Dollno jr. riid The chang" In ~,
jersey Central will effect tAe coal trade NJ MI
Tho officer, ~ ~" Penn yivana Cal tompiny heh
The same opinion. but II WIS ssd that " was nnSni
~ mako PREDICTION With NJ knowing lus how TAR h'
~ solution ~ the has really won't .
: weli.i n, wn otsil dealer who did not wish m
faur usef snl' Tho" VII ie no reduction Mr
Maxwell Is Just ~ anxious - get good price Tor ~
coal ~ auybdv In r,ceut yoar s'ai has not brough
tllug To miners urosper.d under u. some pepil
~ nat do a. we'll bat The greater lumber were l,
w AL
wants any change | have nsstr'd poole that they
bpld court ON Mr. MaNwcis doing nothing to hnf
the tFndc.'
PROTESTING ~ GEORGIA CENTRAL fE'PLE'
Tho fight of th, Richmond Terminal against ih'
C.n..a. 1-...ruI 4 nnniLnncd- Mllinr q. takn1n