The evening times. [volume] (Washington, D.C.) 1895-1902, 1897-07-13
PLOTS TO MULTIPLY MILLIONS
Arrangements Which, When Ma
tured, VIII Make the New Yorker
and His Associates Veritable Die
tators- Systems Involv-
ed in a Consultations.

Morgan 3 grasp was OF DllliOn Gulidis
worth of railroads Sunday it was told
how, 10y means Of the third rail system
applied TO these pIoy critics, he would soon
enrich himself at least $500 600 900,
Tooay tie story is told of his street railway
ventures, now progressing smoothly toward
the monopoly of that prosperous business
in seven great centerS of popu!a ton
The consolidation of interests has not
been perfected. MIR. Morgan's sou, j.
Pierpopt Morgan, Jr., said yesterday that
there was no consolidation. Yet Wall
street mel and the street railway mag
mates OF the seven cities concerned know
that the bankers grasp is tightening on
thes. valuable properties; that his genius
for organization IL showing itself in their
corluct, and that s,oner or later, with
half a dozen associates, he will be in f1h
control
For five years Mr.. Morgan has been ac-
Gun ulaiiHg street railway stocks and honds.
He frs got into it through the needs OF
his pet manufacturing enterprise.
That concern. organized in 1892, built
dynamos and motors and inst allied electrical
railroad plants A large number of street
=
that time The change TO electrical equip
ment was made by 80 per cent of all the
American street railroads on the ground Of
economy
large proportion of them borrowed
money for their new equipment through Mr.
Morgan's banking house Despite their
expenditures and the hard times, they be-
gan 20 rlake money.
But Mr. Morgan did not relinquish his
hold on them. on the contrary, he added
to his powers as a creditor 10y becoming
a stockholCer.
The West End Railway Company and
the Boston Elevated Railway Company, OF
Boston. representing an aggregate capital
of S25. .O00, 600 and the Chicago General
Electric Railway Company, capitalized at
S30.O0C, 900, are The only companies In
which Mr. Morranis known TO hold direct
control OF the stock. or those companies
the West End is the only che with estsh
lished lines.
Tie West End Company's capital stock
amornts TO 81 >, ass. 600. ofwhich morethan
one-haIf : owpe1 by Mr.. Morgan ard Kid
DER, Peabody Il Co. and ther clients. These
shares are voted together, SO that the CON
troi OF the property goes with them. The
property in tabular statements as follows,
according TO the last annual report: Cost
OF road. equipment and real estate SEA-
ga, ,O1 s: funded debt. So. 005 900: gross in
come. S9,341, 95S; dividends. S1,147 $50;
surplus. S64,7ss.
The Boston Elevated Railway Company is
20 absorb the West End. and TO enjoy a
thirty years rlcnopoly OF Boston's local
10 Az
ribpted pro rata among the holders Of West
End sock, SO that the transportation prob
lem in Rns.on viii continue in the hands
OF Mr.. Morgan and his friends.
The Boston Elevated Railway Company
was Organized TO operate the West End
surface lines and ten miles OF elevated
track to he constructed. President whit
ney. OF the West End Company, with
whom MIR. Morgan is associated in the
transaction, is a brother of William C.
whitney
Mr. Morgan's foothold In Chicago has
been gained in two ways. The Yerkes
lines in that city. which were equipped
with electrical apparatus from Mr. Nor
gan's Schenectady works. floated theil
equipment bonds through Mr.. MOTgan's in
fluence in New York This was the begin
ming of an ALI ance that has been strength
ened by more recent complications in the
street railway situation in Chicago.
A valuable franchise was secured hy Mr
Morgan recently, and he organized Com
pany to. rival the big competitor OF the
| Terkes lines-the City Railway Company
| When completed this railway will cover
| sixty miles of streets on the south side
| The north and West side lines. controlled
| by Yerkes and Morgan, have an aggregate
mileage Of 302 miles
| BY siplilar alliances with Messrs Fl.
| kins, Widener and Dolan, of Philadelphia,
| Mr.. Morgan has become the power behind
the throne in the Philadelphia. Pittsburg
and Baltimore street railway situation.
The Union Traction Company. of Phila-
| dalplia, the largest of the hirteen corpora
tions controlled by the Morgan group. is
| apt allied at S69,l97, 700 It runs ., 900
cars and employs 5000 men The Union
Traction Company operates all the street
railways OF Philadelphia except one minor
| line. the Hestonville, in all 400 mics. It
has a capital of $50. 600, 900, and its first
years operation showed a deficit of $780,
| eco over operating expenses and fixed
charges. The company acquired the hila-
| delnhia Traction Company, the People s
Traction Company and the Electric Trac
tioa Company and the lines owned and
leased 10y these companies.
In addition to the two companies Just
organized in Boston and Chicago, The fol-
| lowing companies are indirectly controlled
| by the Morgan trust:
Union Traction Company, Philadelphia;
West End Street Railway Company, Bos-
! ten; West Chicago Street Railway Com
pany anc North Chicago Street Railway
| Company, Chicago National Railway Com
pany, st. Louis: Baltimore Traction Com
pany, Baltimore City Railway Compan '
ana City and Suburban Railway Company,
| Baltimore, and Con solidated Traction Com
| pany, Pittsburg and West End. Pittsburg
and Birmingham Traction Company
The general plan by which the Morgan
| street railway properties re to be carried
| on is not known. but il is known that in
Roston, Baltimore and Pittsbrug reorgani-
zation is contemplated which will bring the
several railroads more directly under his
control.
1he new corporation is well understood
10 be controlled 10y Mr.. Morgan, although
the effort was made TO show the Massa
chusetts legislature that the controlling
interest was held in Boston.
Mr.. Morgan's connection with New Yorl
and Chicago street railway In terests is well
understood in the financial world and
amung street railway men In Pittshurg
Baltimore. Philadelphia an d st. Louis how
ever. where the con sol:dations are not yet
complete, great secrecy has been obser,cd
II has been known in st Louis for some
time negotiations have been I'm progrcss Ivy
Eastern capitalists TO secure what is known