The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1893-08-04
New Jersey Traction Com
pany Gobbles Up the
Newark Passenger
Company.
TERMS0F THIS LONG LEASE
An Efficient Service Promised
The Consolidated Traction
Company.

There was FLED In Register Fielder'
Office at the Court House yesterday q
copy of the lease of all the surface rail-
roads in Essex aud Union Counties
which are to be controlled by the New
Jersey Traction Co, The latter company
is the one which is even at the present.
time enjoying monopoly of the surface
railroad traffic throughout Essex, Union
and Hudson Counties, the Consolidated
Traction Company being part and
parcel of the New Jersey Traction Com
pany So far as Essex and Union coun-
tiesiwere concerned the Newark Passenger
Railway Co. enjoyed this same monopoly,
but on March the Newark Passenger
Railway Company leased its holdings to
the New Jersey Traction Company. That
agreement was finally discovered to be
unsatisfactory, and the lease recorded
yesterday is one entered into during the
latter part of last mouth, Rad is the con-
summation Of the big surface railroad
deal
The fact that the Newark Passenger
Company leased all the Essex aud Union
county lines to the New Jersey Traction
10 explained in this manner.
THE FIRST DEAL.
y
pany WAS consolidation of the Essex
Passenger Company aud the Hudson and
Bergen street railroads. AS consoiidst-
ed company it purchased the lines, fran.
chises ana paraphernalia of the Newark
and Irvington Ruad. and the Elizabeth
aud Newark Road consolidated. thus
gobbling up all the Elizabeth lines
which were controllers of all the Union
County roads. The Orange and Newark
Roads were next secured. then followed
the acquisition of the Broad Street line,
the Newark and Bloomfield. Newark.
Harrison and kearnv lines, Essex aud
Company. and finally the Rapid Transit
Street Railway Company of Newark.
OF all these roads, the Newark Pas
senRer Company secured lease for 500
years. The company was booming along
ln splendid form, stock was jumping uD
day by Gay, and finally In steps the New
Jersey Traction Company aud leases all
TIE lines or the Newark Passenger Com
pany. and incidentally the princinal lines
in Hudson County, with the understand
lug in It's charter that it is to extend its
lines as Is deemed wise and necessary.
TERMS OF TIE LEASE.
For the lease of the Newark Passenger
Railway Company's lines which is for
ggg years, the Traction Company agrees
TO pay t. rental of 500. 900, for the first yeRr
wh!cn ends on August l, 1894; 500, 600 for
second year; $i95.000 for the third and
remaining years of the term of 999.
Some idea can be gained Of the enormiuy
of this moRepoly from these figures given
above. The rental is made payable at
the Office of the Manhattan Trust Com
pRny of New YORK. The Traction Com
pany further 2arees to shoulder all of
the iessor's obligations, save the bonded
debt, but It agrees to pay upon
lad doh on f,1fo "
secure "a mortgage of $4,000. 600, held by
the Solicitors Loan aud Trust Company
of Philadelphia. The Newark Passenger
Company, aJ the time Of making the
lease, held In it's possession 81 GOO, 900
worth Of underlying ponds.
The Traction Company also agrees to
pay interest upon $780, 900 mortgage,
bearing seven per cent. interest, due in
1900. issued TO Daniel Dodd aud Alfred
l.. Dennis on the Belleville and Newark
line. Also the interest upon another for
slC0.OO0, bearing six per cent. interest,
l-snsd to Charles G. Campbell and Robert
+. Baliautine, due February l, 1901. on
the NewarS aud Bloomfield line; still an
utaer of $i96. 500. bearing 6 per cent. in
tsrest, Oh the Orange aud Newark liae,
issued TO Theodore Runyou and Alfred
L. Dennis, due April l, 1905; another for
$753. 500 on the Essex Passenger Com
pauy's lines, bearing 6 per ceut. interest,
c. FreliDghuyssn. due November |, 1905.
and one more for S50.000 on the Newark
and Irvington lines, due in 1900, held by
Charles G. Campbell aud Robert f. Bal
lantine. Tae S1.600000 of underlying
bouds was transferred to the traction
at the tiue of the consummation of the
lease for the payment OF the above men-
toned mortgages.
WILL PROVIDE AN Efficient SERVICE.
TIE 1rsciiou Company agrees to afford
an efficient service, and to carefully pre-
serve the rolling stock aud to also pay
$500 for he current expenses of the ex-
owners Of The Passenger Railway Com
pany who will meet yearly to investigate
the condition of the new company If
the rentals referred to previously are not
paid at the expiration OF three months
the lease Is forfeited. and the Traction
Company held responsible for rentals in
arrears. and all damages incurred to the
lessons.
The lease is signed by Thomas ]. Will
son for The Newark Passenger Railway
Company. and Thomas c. Barr. Presi-
dent of the New Jersey Traction Com
pany.