New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-01-04
ATTACKS ON READING STOCK.
WILL THE COAL COMBINE HOLD?
OFFICIAL EXPLANATION OF THE SEVERANCE OF


RELATIONS BETWEEN THE READING AND
JERSEY CENTRAL COAL DEPARTMENTS
The affairs OF the Philadelphia and Reading Rail-
road are at present occupying large attention In Wall
street. Heavy transactions took place at the Stock Ex
change in the stock. and the price dropped
two per cent, while the income bonds the
weak feature Of an otherwise firm bond market.
Wild rumOrs current OF dissolution Of the coal
combination. and OF complete severance Of the
lationS between the Reading and the Central Railroad
of New-Jersey The reference In Governor Flowers
message to the need OF controlling the coal com
bination added zest to the bear attacks which
made upon Reading
The renewed agitation to the Reading Company
stimulated by the recent public announcement
that the Lchigh and Wikesbarre Coal Company. which
Is controlled by the Jersey Central had decided 10 sell
Its coal hereafter instead OF through the agency
Of the Readings coal department. The announcement
comes late, but the Independent arrangement Will date
back to December l. 1892. The officers Of the Jersey
Central explain that that date fixed upon because
II Is the end OF Readings fiscal year and an earlier
severance Of relations would have caused unneces-
sary complication OF accounts. The official cXplana-
ton is follows "Thls change Of base on the part
Of Lehigh and WilkcsbarTe has been Induced by
the litigation In the state courts whereby a more
complete separation from the Reading is considered
desirable, and also by the arrangement OF the
Reading Company with the Finance, Company OF
philadelphia BY which the hitter handles Reading
coal The instruction Issued to conductors on the
Jersey Central not to honor passenger passes issued
| by the Reading after January I. 1903, except on
Reading trains Is said to be simply part Of the
separation In Difference 10 legal proceedings that had
been decided upon. The for 1902 were allowed
| to run out matter Of courtesy.
| On August %. 1892. Chancellor McGin. Of New
jersey decided that the lease Of the Jersey Genital
by the Port Reading Company (the Philadelphia and
Readings dummy rOadl Invalid. and the jersey
Central managers commanded to take posSessp IN
of their property. This they did Immediately after
ward. and since then the Jersey Central has been
operated Independently. An appeal was taken from
the Chancclor's decision by the Reading people and
the Supreme Court OF New Jersey has the before
ii. subsequently,. however. I'll" Attorney General of
Ncw-Jerscy applied for receivcISlp OF the Jersey
| Central on the charge that 1t In contempt OF
court in maintaining the coal combination 1t Is this
| phar Of the litigation which may have led to the
decision Of the Jersey Central people To remove the
possibility Of reproach by influencing complete sever
ancc Of the relations between It's coal company ana
the management Of the Reading Company.
The jersey Central people say that there Is not
lack of harmony between the two corporations. II
The litigation I'm the Ncw-Jcrsey courts ends In con
nrming the validity Of the Port Reading lease they
admit that the contract Of lease will resume It's legal
force But there are two statements which encourage
Wall street in the Idea That the great Reading d'a :"
| last February has Collapsed one Is the ASSERT IN by
CAPITALISTS largely Interested In jersey Central That
they or their friends had an Interest In l'ad
I'M, "a consequence of the lease. To mis- th" reply
Is given that II such Is the cas-" the Jersey Central
| oeoplc will not BE- anNlous TO see rrsurrendrr "i
their property to the control Of Reading Til" other
! statement leads 10 the conclusion bnt IL is
based upon the promise that there has been iarfe
! shifting Of speculative holdings. when leaves Inv
| Reading without the friends that II had when the
.f.II.. pfsdg
TO- 1892 There Is nothing Official which Justine
| these CONCLUSIONS but the operators In yesterday
s,ock ,rarL. talked then I'm explanation OF 'h'
decln. I'm Reading stock md bonds. " was hN'
urged that the independence OF the Lehsh anu
Wuke.barrc Company would lead 70 a les ngii mann
t.naucc Of coal prices In the future Ihis "'a i
secuted bv managers OF tho coal companies on 'h'
ta tho, seI,ptcsrrvaiI1n will hold the coal com
uonics together on selling prices. There Is IL
| doub, however that President Mcleod. Of the h'au
Ing has had only reluctant support fF'n some o' Wv
companies IN his policy last year TO rush ptics UP i,
n ripld ratc without any CufalWent ol ""al'a ,rS
Inn,rn ,bot the Delaware and Hudson Managers
have advocated restriction OF production ana 1 1a'
tne ,,rInc nice. withou, restriction. 1t Is said
MT Circular prices are about we'll m,inlap
a. 49, .,tuatIon Of thr coal trade Ia The comm:
spring ALREADY cng.Tng ,,Gspcatons in Htiration
u9ni rrc1sc an Important influence In dstermhs
the future policy Of the coal tTaas. quoted samuel
! s,,, ur. .Idont 81 the Delaware Lack""ah"h "''
/ Western. ~ follows O., -, IN. Delaware
Ne asked President sloan OF inc ,nn c"si
l"wonna and Western. for his view OF nic ,'i 4,
I,nnt"n lie replied II this weather keeps W. II
Iii e,cody thc trade enough $500,
W" :. Nov, about the Reading situation -, no.. cam.
II, Z wdl known that Jersey central mn , cmn.
,lot.y separntcd from Reading h"'ilSr IT }. a,t in
p''lA t.. In do 50 ~ a state corporation l'u w
[ ~ IN. attitude shown townrd. IA" col,' ~ +,
| e. ,hn New Jersey courts. jersey ,'hu"l ,t e 80
III -. "a ,yn gone into II and would not nav" ""I
~ I'D bccn consulted I'm tn" matter ana III! '"' A.,
Ia Ie.n followed never did approx" II. ,'uN'
,, g. nat m. companies should not r'atrri P"'a
tinr Int should maintain prices am wine u, Eontnd
" ,r,ice and stick IT, hut whatever coal Is "imnI1
q. iuat mice | am willing 10 furnish iherc a'o"''
! ~ '''' ~, In the uroduction.''