Kansas agitator. [volume] (Garnett, Kan.) 1890-1905, 1897-09-03
A $20O,00C 900 DEAL.
THE SIZE OF PIERPCNT NOR
CAMS LATEST GRAB.
Aided by Electricity He Can steal with
Lightning Rapidly and Eventually
ness.

pont Morgan, the New York banker
who chiefly shapes the monetary poll
cies of the government of the United
States as at present constituted, has
also suddenly become the greatest rail-
road king Of the age. controlling,
through English capital entrusted to
him, over $1,000 miles of railway ex-
tending from the Atlantic to the Pa
ciic and from New England to the
Gulf of Mexico.
A deal is now made public whereby
Mr.. Morgan will clear 5000, 1000, 900 per-
sonally, and incidentally pave his way
to the control of all of the railroads of
this country.
The only time Mr.. Morgan's friends
have questioned his judgment was
when he took them into General Elec-
trio. He is about to lead them out,
with honor. This is how he proposes
to do it:
AS told in the New York Journal,
Mr.. Morgan has acquired control of
nine great railroad systems. He will
equip them all with the third rail"
electric system.
The New York, New Haven & Hart
ford, which also handle the traffic of
the Boston & Maine; the Boston & AL
bany; the New York & New England,
and the Old Colony lines.
Specifications for the equipment OF
the entire New Haven system, 2,023
miles of track, have been submitted
to President Clark, and are expected
to be adopted at once.
Mr.. Morgan's influence has also
been felt in the introduction OF the
system in New York. The Metropoli-
tan Traction Company is about to con-
tract with the General Electric Com
pany for an equipment of its Fourth,
Sixth and Eighth avenue lines. Gen
eral Manager Fransioli has recon-
mended it to Russell Sage and George
Gould, of the Manhattan Elevated
Railroad.
The Brooklyn elevated railroads nave
also had specifications drawn.
More than $1,000 miles of railroads
come within the scope of Mr.. Morgan's
great plan, stretching from Boston to
Portland, Ore, and in the South to
Florida and Mississippi.
He has appeared in most OF them as
a reorganizer. On him more than on
any other railroad financier OF the
time has developed the responsibility
of bringing railroad expenses down
within the earning power.
These railroads, together. represent
a capitalization Of 81, DIG, $3.50. With
the exception of the New York Cen
trail and New Haven roads they can
only be sure dividend payers by the
strictest economy Of operation.
BY the introduction of the third
rail- system Mr.. Morgan proposes to
bring about an easy reduction in the
running expenses sufficient for divi-
dends and sinking fund to discharge
the cost of the improvement.
Roughly estimated. the cost of cleo
trical equipment on this 27,S67 miles
of road will be $547, 54O,O 900.
Practically the whole of this amount
will pass through the treasury of Mr..
Morgan's electrical works. leaving
there in the shape of the manufactur-
er's profit 25 per cent, or $136,SS5,ooO
The patents for the system which Will
bring in this princely revenue are val
ued now at $S,OOO,OOO.
But this direct profit is not the only
gain that will fall to the lot Of Mr..
Morgan. General Electric stock is
now quoted at 1885. 1t will be worth
300. Mr.. Morgan and his associates
control $25,O0O,OO0 worth of the stock,
the market value Of which is $780,
900. The gain there will be $66,25O,-
900.
This $66, 25O, 900, added to the direct
manufacturer profit of $136,SS5, 900,
will bring the total profit up to $685.
1876, 900, to say nothing Of the increased
earnings of the railroads which Mr..
Morgan has control, or Of the commits
sions which that astute financier will
earn in floating the $5OO,OOO,OOO of new
equipment bonds, essential in the
deal.
The control of the Lehigh Valley by
the New York Central with Morgan
at the helm means much to the gen.
eral railroad situation. 1t helps the
trunk lines by preventing rate cutting
by the Lehigh, which owns the short
est route from New York to Buffalo.
It improved the position Of the New
York Central, and therefore renders
the Vanderbilt interest amenable to
Mr.. Morgan's suggestions on the. sub
ject of new equipment.
1t is said that Mr.. Morgan, when he
secured the option of the holdings of
Lehigh Valley stock by the Packer es-
tate, agreed to do several things for
the estate and the railroad company.
He loaned the estate about $2,750,000
with which to protect its loans; sec
ond. he agreed to loan the railroad S.
DOC, 900, and, third, he agreed to ex-
tend the 100000 bonds Of the road
which mature in 1898 at per cent.
In exchange he received a block of
collateral trust bonds at low figure,
a commission for extending the matur-
Ing bonds at a lower rate of interest. |