Evening star., 1896-10-01
The Great Financiee Amalgamating
Eastern Railway Systems.
BE OWNS THE NORFOLK AND WESTERN
Possibilities and Probabilities In
volved in the Deal.
MAY LINK NORTH TO SOUTH

Western railroad, which for nearly twenty
fve years has been more or less constantly
IN financial trouble, passed from the hands
of the receivers. who have operated 1t for
several years, into the management and
control of Mr.. J. Pierpont Morgan. of
whose extensive system of railways 1t will
form most important part. The incident
marks an era in the history of Failroading
in the SOUTH and renders additionally cer-
tain the heretofore expressed belief that
before the dawn Of the new century Mr..
Morgan will control more railway prop
critics than any other one man in the world.
The impression in the railway world is
that the Norfolk and Western has seen an
end Of the troubles that have environed it
for SO long. and that ii Is about to enter
upon career Of prosperity such 1t has
never yet known.
Importance to the Southern.
The importance and value of the Nor
folk and Western as one of the component
parts Of the Southern railway system
whose headquarters is In Washington have
heretofore been explained In The Star,
and although the Norfolk and Western
will have its own president and other
executive officers, 1t will be operated
such lines Of policy will show that Presi-
dent Samuel Spencer's views Of railway
management are shared by those now at
the head of the new company
Many thinking men are under the i'm
preston that in the very near future there
will be made a junction Of the Norfolk and
Western and Philadelphia and Reading
railroads, and that this, If consummated
will mean much for the increase of railway
business throughout this entire section of
country. in which Washington will almost
certainly have its share.
Through the Western Maryland railroad
the Norfolk and Western, whose northern
far 1iV1pyo To- 4 S,
within a few miles of Harrisburg, Pa. AS
matter Of fact the Philadelphia and Read
Ing. which, as almost every newspaper
reader now knows, was purchased last
week at foreclosure sale in Philadelphia by
Mr.. Morgan, extends to Bowmansdale
some ten miles west of Harrisburg, and the
constructio Of a link of less than that dis
tance would give the Reading an outlet via
the Western Maryland to the richest part
of the state of Virginia, which Is traversed
by the Norfolk and Western, and it would
also reach to and carry to northern and
eastern markets the products of some of
the finest and best coal mines of south
western Virginia and the adjacent part Of
West Virginia.
The Connection Once eMplated.
This link would have been constructed
by the Reading people. years ago mad not
the financial famire Of 1923 overtaken
the financial panic OF 1923 overtaken
entered into by the then pr esident Of the
Reading and General John NJ. Hood, pres
ident of the Western Maryland Railroad
Company. for a mutuax:nterchange of bust
ness on terms that were highly favorable
to the latter and would no doubt have
Eroven profitable to the Reading had not,
unfortunately for all parties concerned, the
panic above mentioned fallen upon the
country.
days the project. it iss believed. is about
to be revived, ard there is not much doubt
now that the heretofore projected line will
be constructed In the very near FUTURE and
what gives color to the report is the fact
that Immediately following the. purchase
of the Reading by Mr.. Morgan the bond
holders of the Berlin Branch railroad, a
branch Of the Baltimore and Harrisburg
division Of the Western Maryland railroad,
held a meeting at which they determined to
propose to the Western Maryland Com
pany to either lease the road 20 the latter
or sell 1t to them outright.
The Western Maryland Ownershfp.
So far as the Western Maryland Railroad
Company Is concerned the idea that 1t
would buy any railroad is not worthy Of a
moments consideration. The Western
Maryland Company is owned by the city of
Baltimore, which has invested. including
accumulated interest. some $SOOO.OOO or
$10,0O0,OOO in the corporation, and from the
greater part of which 1t does not derive
cent of profit. When the democrats were
in power in Baltimore the question of SELL
ing the city's interest in the road was an
almost constant subject of agitation, and
ordinances have several times been intro
duced into the city council providing for
the sale. Every mayor for years previous
to the present one. Mr.. Hooper, before
whom the subject has not yet come Off
cially, has advised that the city dispose Of
its holdings in the Western Maryland. and
the late Mr.. Enoch Pratt. who one of
the finance commissioners had occasion to
make many reports on the subject was for
a long time most strongly in favor of the
the road held by 1t. even II to do SO re-
quired sale at a sacrifice price.
In addition to the Western Maryland
road being non-productive investment
except on a very small part of its securi-
ties. the tax necessary to provide the
funds to pay the interest on its securities.
which are held by various parties. but
which was guaranteed by the city, forms a
no small portion of the annual tax levy.
1t is believed. therefore. that while there
Is no probability Of the Western Maryland
road buying the Berlin Branch road, there
Is every reason to believe that the long
projected connection between the Reading
and Western Maryland will soon be an ac-
complshed fact, and that it will be con-
structed mainly for the reason that it will
be for the interest of Mr.. ]. P. Morgan to
have it built.
The Reading Could Reach BaItimora
Ahe Sohs1l ocloa VI thls snort piece of
road would also give theReading an entrance
into Baltimore, though to do SO it would
have to use the tracks Of the Western
Maryland. 1t would. however, parallel the
Northern Central between Harrisburg and
Baltimore, distance Of about eighty miles,
but in doing so it would traverse a field that
is still ripe with business ADVANTAGES. al
though 1t has been well worked. From
Baltimore the Reading could run its own
trains into Washington,gprovided a satisfac-
tory arrangement could fbe made with the
Pennsylvania or Baltimore and Ohio, and
as Mr.. Morgan's financial interests in the
latter are very LARGE II La nl1ita nroha hla