The Louisiana populist., 1897-12-10
"A S2OO,OOO,OOO DEAL.
EHE SIZE OF PIERPONT NOR
CAMS LATEST GRAB.
aided by Electricity He Can Steal With
lightning Rapidly and Eventually
control the Entire Railroad Busi-
ness.


VINO chiefly shapes the monetary pol
cles OF the government of the Unite
states as at present constituted, b;
also suddenly become the greatest raj
road king of the age, controllin,
through English capital entrusted
MIN, over $1,000 miles of railway e,
tending from the Atlantic to the Ps
cine and from New England to tb
Gulf of Mexico.
A deal is now made public whereof
Mr' Morgan will clear 100000 900 pei
sohaily, and incidentally pave his wa
10 the control of all of the railroads c
this country.
Inc only time Mr.. Morgan's friend
nave questioned his judgment wa
When ne took them into General Elec
trlc. He is about to lead them out
with honor. This is how he propose
to do it:
AS told in the New York Journal
Mr. Morgan has acquired control O
nine great railroad systems. He will
equip them all with the third rail-
electric system.
Ihe New York, New Haven & Hart.
lord, which also handle the traffic O,
tne Boston G Maine; the Boston & AL.
oany; the New York & New England
and the Old Colony lines.
specifications for the equipment OF
the entire New Haven system, 2,O2a
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. Cen
eral Manager Fransioli has recon-
mended 1t to Russell Sage and George
Gould, Of the Manhattan Elevated
Railroad.
The Brooklyn elevated railroads have
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 Mississinni
He has appeared in most OF them as
q 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
capitalization Of $1,O16,9S2,25O. With
the exception of the New York Gen.
trail and New Haven roads they can
only be sure dividend payers by the
'trictest economy Of operation.
BY the introduction of the third
'aiP' system Mr.. Morgan proposes to /
bring about an easy reduction in the
'unning expenses sufficient for diyi-
lends and sinking fund to discharge
he cost of the Improvement.
Roughly estimated, the cost of elec-
rical equipment on this 27,S67 miles
f road will be $547,54O,0OO.
Practically the whole of this amount
rill pass through the treasury of Mr..
1organ's electrical works, leaving
here In the shape of the manufacture
RS profit rs per cent, or $136 1856 900.
he patents for the system which will
ring in this princely revenue are val
ed now at $8.00O,0 900.
But this direct profit is not the on,v
ain that will fall to the lot of Mr.
lorgan. General Electric stock ia
ow quoted at 335s. 1t will be worth
10. Mr.. Morgan and his associates
,ntrol s25,000,00O worth Of the stock
le market value Of which is s8.250.
70. The gain there will be s66,25O.- {
TO-
This s66,25O,0OO, added to the direct
anufacrurer's profit Of $136, 1856 900
III bring the total profit up to 5000 /
5000, to say nothing Of the increased 4
rnings of the railroads which Mr. !
organ has control, or of the commits :
ons which that astute financier will +
IN in floating the $500, 100000 OF new :
uipment bonds, essential in the :
al. .
The control Of the Lehigh Valley bv \
New York Central with Morgan y
the helm means much to the gen. 7
II railroad situation. 1t helps the q
INK lines by preventing rate cutting .
the Lehigh, which owns the short n
route from New York to Buffalo. p
improved the position of the New .
TX Central, and therefore renders :,
Vanderbilt interest amenable to s1
. Morgan's suggestions on the sub- :,
OF new equipment. :,
Is said that Mr.. Morgan, when he. :.
ured the option OF the holdings ~ n
Ugh Valley stock by the Packer es- q
}. agreed to do several things for =,
estate and the railroad companv :,
loaned the estate about s275O 000 I,
b which to protect Its loans; sec n
!, he agreed to loan the railroad a.. Il.
900, and, third, he agreed to er-
4 the $5,0oo,0oo bonds Of the road #
ch mature in 1898 at 4 per cent. Ii
exchange he received block Of 4,
ateral trust bonds at a low figure Al