The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1895-05-18

figures III tne commune. Inc fATSt ma
tional Bank party is made up Of Presi-
dent. George F. Baker and Vice Presi-
dent Harris c. Fahnestock, Of the bank;
President J. Rogers Maxwell, of the
Central Railroad Of New Jersey, and
other large capitalists.
The First National Bank party first
secured the New Jersey Central rail-
road some five years ago. Two years
ago they allied themselves with the
Vanderbilts in gaining control of the
Delaware. Lackawanna and Western
railroad. The Vanderbilts last year
turned up In control of the Delaware
and Hudson Canal company and ex-
cluded from the board of directors
Colonel Legrand B. Cannon, who had for
years been the first vice president Of the
company. The Vanderbilts have long
had large interest In the Philadelphia
and Reading. They agreed to increase
1t when the proposition for combine
came from the National bank party.
j. Pierpoint Morgan, who is the banker
and financier for the Vanderbilts is on
the other side. He was communicated
with and approved of the scheme.
Regarding tnc tonnage.
The anthracite tonnage of all lines
in 1894 was 42657, ,O29, and 1t was divid-
ed among the various roads by per-
centages as follows: Philadelphia and
Reading. 1854; Lehigh Valley 1S49;
Delaware, Lackawanna and Western,
1880; Central Railroad of New Jersey,
1895; Delaware and Hudson, 9.02; Erie
and Wyoming Valley, 4.51; New York,
Lake Erie and Western pennsylvania
Coal company. 4.36; New York, Sus-
quehanna and Western, 3.36; Delaware,
Susquehanna and Schuylkill Coke
Bros. & Coz. 3.2s; New York. Ontario
and Western. 2.S3.
1t will be seen by the figures given
that the fur roads which the syndi-
cate dominates had last year 5452 per
cent. Of the entire tonnage. Mr.. Nor
gan Is all powerful in the New York,
Lake Erie and Western, and 1t will
join with the syndicate in its plan. 1t
also controls the Erie snd Wyoming
Valley railroad. The Pennsylvania
railroad will be brought in by Drexel
& Co., Of Philadelphia, who handle the
roads bond issues and other financial
undertakings and with whom Mr. Nor
gan Is connected. For another thing
the Vanderbilts have an actual con-
tract with the Pennsylvania, by which
they agree to protect and promote each
others interests. In fact, It's concur
renee in the deal Is known to have been
secured. Thus 7241 per cent of the
total tonnage is consolidated. The Le-
n N ha oil dc ill !,
glad to join In the programme of the
syndicate. for they will profit by 1t
pecuniarily.
Reorganization TO Follow.
The financial reorganization of the
Reading Is to follow in short order.
The company will on July 1 be in de-
fault on the interest on the general
mortgage bonds for two years. The
amount that will then be owed on this
account is $3,544,400.
Other obligations which must be
taken care Of are receivers certificates.
$3,500,000; floating debt, $4,OO0,0OO: car
trusts, $S,000.000, and miscellaneous.
$1.5OO.00O. In addition there is a claim
against the company on account of the
Poughkeepsie bridge guarantee of
81, 100000.
The minimum anthracite production
at present Is 100000 tons year. The
circular prices Of coal are 81 to SLIPS a
ton less now than they were year ago.
An advance of so cents a ton could be
made without increasing the cost to
consumers. The difference would come
out Of the middlemen's profits and 1t
would add $20,OO0,OO0 a year to the
amount received for the coal AS a
fact existing circular prices are cut 50
cents or more a ton.
Production TO Be Restricted.
The intention Of the combine Is to
compel absolute adherence to the circu-
lar prices. 1t can do so by restricting
production to actual consumption.
The Reading Is now able to earn the
interest on the general mortgage bonds
and on the small issues of bonds ahead
Of them, but 1t has not been able to
earn In addition the interest on the
floating debt, car trusts, etc. With the
latter obligations out of the way 1t
could at the increased prices for coal
pay the regular interest on the general
mortgage bonds and the prior lien
bonds. together with per cent on all
classes Of the income bonds except the
deferred incomes which are not entitled
TO anything until per cent. has been
paid on the stock, and there would still
be balance left for the stock.
When A. A. Mcleod, then president
of the Reading, made his great deal
three years ago, by which he put under
one management the Reading, Jersey
Central. Lehigh Valley and New York
and New England roads, he calculated
on securing a permanent advance Of
s1.5O a ton in circular prices for coal
Mr.. McLeod's programme was upset by
the courts. because In some respects It
conficted with Pennsylvania and New
Jersey laws. The combine which has
been buying Reading stock has formu-
lated Its plan so as to avoid trouble Of
this kind.