Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1893-04-13

he severed under pressure a few days
ago, began in 1886, when, in the re-
organization of the road, Austin COrbin
was placed at its head and Mr.. Mcleod
was selected for the position of gen
era1 manager. Previous to this time
he had been connected with q north
western railroad, and his progressive
spirit attracted Austin COrbin'S atten-
ton and led to his promotion. AS gen
eral manager Mr.. Mcleod devoted him
self most successfully to improvements
III his department, and he speedily Sc
cured a better roadbed, a finer rolling
stock and a more efficient train service.
In June, 1890, Austin COrbin resigned
the presidency of the Reading in his
favor and Mr.. Mcleod took active
charge.
Since then one improvement has fol
lowed another, all directly traceabIe
to the new executive. His methods
differed from those employed by other
roads, and his far-reaching policy be-
gan to be felt almost as soon as he
graSpcd his reinS. From the outset he
devoted himself to the study of q
scheme whereby the coal roads might
be consolidated and the useless and ez-
pensive rate war done away with.
When he had completed this scheme
he plunged into the negotiations with
a yigor and boldness which carried
everything before them and SmOthered
opposition before it had time to mani
fest itself
JNplI Inp 4 e I
deal Of a year ago. He did not believe
in n pool. What he wanted was alb
sOlute control of the anthracite coal in
dustry, and with this end in view he
completed his plans and made his of
fers. 1t was not until the purchase of
the PoughkeepSie bridge was annOunc-
ed, followed by the lease of the Central
New England and Western railway,
that rumors of the big deal began to
float about i'll financial circles. No one
knew what it meant, and it was not
until the great deal was completed that
President Mcleod showed his TRUMP
hand
Mr.. Mcleod, as his name indicates,
is of Scotch descent. He is AS years of
age, and the youngest man in the coun-
try to hold Il position of equal re-
Sponsibility. He went into the rail
road business as soon as he left a pub
lie school as Il rOdman in the construc-
ton of the Northern Pacific railroad
He has acquired no personal or bust
ness interests outside his profession,
and he devotcs more time to his work
than any clerk in his employ.
During the past year the Reading
president has been made president of
the New York and New England ANA
of the Boston and Maine railroads.
The story of Mr. McLeod's big coup.
which was announced to the world on
February II, 1892, was one which for
the time set all the railroad world to
thinking and wondering what would
come next The Philadelphia and Read
ing railroad had through President
McLeOd'S efforts, secured control Of
the Lehigh Valley and Jersey Central
for Il term of 900 years and thereby
gained control of the greater part of
the anthracite coal output of Pennsyl-
vania.
BY the terms of the leases the jersey
Central was guaranteed n dividend Of
per cent. on the stock, and, in adj
ditiOn, was to receive One-half Of its
own net earnings in excess of the
amount required for the per cent
divided until the total divided reach
ed 10 per cent. per annum, the sur
plus over 10 per cent. to revert to the
Reading.
The Lehigh Valley was guaranteed,
under the same conditions, an interest
Vt five per cent. per annum until May
81, 1892, and from that date until Dec
ember / at the rate of six per cent,
and after the last named date the guar
anteed dividend was to be seven per
cent In addition to the guaranteed
dividend and after the latter was paid
the Lehigh Valley stock was to receive
One-half of the net earnings of that
road until the total dividend should
equal ten per cent. per annum, after
which the surplus was to go to the
Reading in the same manner.
A further agreement was reached in
the negotiations, which, it was expect
ed, would completely revolutionize the
existing methods of marketing anthra
cite coal and result in a big saving
of expenses so far as the selling agen
cieS were concerned. The plan was
to consolidate the offices engaged il
the anthracite coal trade under one
general management, and President
Mcleod to be in executive control O1
this big business corportion.
Just what Mr.. Mcleod considered
would be the ultimate result of thi,
big consolidation he expressed at the
time, when he said: In the carrying
on of the coal trade the saving in com
missions, agency expenses and tn
economies of the traffic under the new
arrangements are expected to reacl
Sll,OO0,00O annually, divided among tn
various railroads interested. When i
is further known that the control of tn
Delaware, Lackawanna and Western
railroad has passed into hands tina
are friendly to the Reading manage
ment the investing public will recos
niZe that the new arrangements vii
tend to secure harmony in the Goa
trade, and by saving unnecessary eS
penSes and promoting economic
throughout the various railway syS
TENS concerned will make more stabl
values for coal companies securitie
without adding to the cost of coal t
the consumer.
1.-The great benefits of the new al
engagements are obvious. In additio