Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-05-25
RAILROAD RU M r S
Coming Sale of the Reading and What is
Likely to Happen.
1t is Claimed the d. and o. May Re-
come a Part of a Great System
Now Being Formed.

| Two events within the past few days in
| the railroad world. taken in connection
| with number Of others that have occur
| red recently. justify the prediction that the
beginning of the twentieth century will see
| all the great railway lines of the United
States certainly those east Of the Missis-
| sippi river, consolidated into four and per-
! haps only three great systems, and each of
| these systems under the direction of very
few capitalists. and perhaps a single
| banking house.
| The two events referred 10 are the an
| rounced determination of Messrs. J. p.
| Morgan Sc Co. to buy the Reading railroad
| at the coming foreclosure sale, the date
| OF which Will be advertised in a day or so,
| and the news that has been received from
| the west that the management of a new
Kansas railway system, which comprises
most Of the roads north of the Missouri
river, have made an arrangement with the
present management of the Baltimore and
Ohio under the terms of which the Balti-
more and Ohio's southwestern division,
which now has one Of its termni at Boards
town, ILL., is to be extended to Kansas City
and connections made there, which will
give the baltimore and Ohio an opportunity
| to pick up vast amount of freight from
| which it is now entirely excluded.
u Will not even be necessary for the
from Beardstown to be finished before it
Will be in shape to take the additional
freight expected, because the building of
small piece of road at Kansas City, the
construction of which is to be begun as
soon as the contracts can be let, will per-
NIT the carrying out of a plan for ANAL
gamating the Kansas City. Quincy and
Omaha and the Omaha and ST. Louis lines
! to which latter city the Baltimore and Ohio
already extends. 1t is also intended that
the road to be built at Kansas City shall
| be pushed ahead until the new system ar
ranged for shall permit Of the running Of
trains direct to Omaha, Des Moines and
Quincy.
Facts About Reading.
The news that ]. P. Morgan Co. are
about to purchase the Reading road (and
| 1t Is stated that they will probably be the
only bidders) makes review Of the con-
nection OF the house with the road during
the last couple Of years especially inter-
eStng.
The Reading" as stated by one who is
conVersant with Its history. has had many
Fcissitudes. but 1t has never been in quite
as tad straits as it is at the present time
II was in the hands of receivers from MAY
lSSo to February, 1888, and from June,
1851 TO Jarrary, 1888. In February, 1885,
| II was reorganized without foreclosure and
Alexander Mcleod became president. Dur
ing his administration the Reading leased
the Central Of New Jersey and the Lehigh
valley systems, but these have since been
e.
celyers were again appointed.
subsequently tie following reorganiza-
ton committee was appointed: F. p. Oh
colt chairman: Adrian Iselin. jr.. ]. Ken
| ny. an Of New York: George H. Earle, jr,
8 +. Tyler, Samuel r. Shipley and Rich
| ard Y. Cook of Philadelphia
III VIII be Eoticed that the name of j. p
Morgan q Co. does not appear In the above
| list, but taat they were the real managers
| or the affair is evidenced by the fact tina;
IN December last the committee issued, I'M
| Ger the direction of j. p Morgan q Co, a
plan CT reorganization. This undertook to
provide for the protection of the present
I general mortgage, the reduction of the
hEed charges to safe limit. adequate
working capital, the payment o. the float
Ing de5t md provision for car trusts and
such control Of the system as should rem
Ger additionally secure the new general
| mortgage. The plan also called for fore
closure, If Necessary. under the general
mortgage, and for the form alton, unaer the
| laws OF Lsylvania or some other state
| or new CO mpany. 1t is under this clause
that the sale is to take place. and 1t has
| been air. aedy arranged that the new com
| pany, otherwise J. z. Morgan & Co., shall
issue bondS.'
| A Southern Connection.
The purchase Of the Reading by j. p.
Morgan & Co. will certainly 1t is believed,
Dc Followed by the closest sort of a working
arrangement between the Reading the Bal
tlmore and Ohio and Southern railways
which will tax the transportation facilities
| OF the Baltimore and Ohio to the utmost
The Reading has long desired to get di
rect route to the south, more particularly
through this section, in order to create new
markets for its coal produc ton; and though
| the route Via Shippensburg and Hagerstown
| is somewhat circuitous, 1T Is not more SO
| than is that followed by many of the lines
between the east and the west
But there is another matter which will
| follow the sale Of the Reading to Morgan,
and this Is that 1t will put him at the head
OF one of the greatest combnat tons of rail-
ways in the country. Every one who reads
! the papers knows that MIR. Morgan and his
associates own the controlling interest in
| the Southern road, with it's $500 miles of
trackase and penetrating all the states of
! the south; that he dictates the policy of the
baltimore and Ohio. and that he certainly
will direct Reading affairs when he becomes
| the owner of that line, giving him altogeth
er the control of railways having an as-
gregate mileage Of between II 600 and 10 coo
miles, and placing him in the front rank of
railway magnates, with only the Wander
bits and the Pennsylvania comDany as his
| real competitors
| Mention has heretofore been made In The
Star that Mr.. Samuel Spencer will eyeptu
ally become the president of the Baltimore
and Ohio. and 1t Is still believed that this
| will occur, but 1t is now thought that he
will before doing so take hold of the Read
! Ing and bring it up to the high state of eff
cheney which he has been able to impart TO
! the Southern. 1t is worthy of note that
while Mr.. Spencer is taking a much-needed
| and well-earned rest in Europe, the duties
OF his position are being performed by First
| Vice President Andrews. and it Is believed
| in some quarters that the latter is in
/ training for the presidency of the Southern.
| should Mr.. Spencer retire from the office to
carry out the active work of reorganizing
| other of the Morgan railway properties,
1t may not be out of place to mention that
the Baltimore and Ohio and Reading are not
nj
& Co. have undertaken to straighten as
| they are also engaged in similar work for
| the Wisconsin Central railroad. The rela-
| tons between this company and the Balti-
| more and Ohio have been quite close for a
| number of years and both use the same
| terminal facilities in Chicago.
Loan Scheme Thwnrted.
Postmaster General Wilson has issued
| general notification notwithstanding
| new scheme OF money-lending concerns,
which recently have been advertising to