The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1898-01-10
That Is 0ne Of the Objects Accomplished
by the Recent Consolidation.
THERE MAY BE OTHER OBJECTS
Railroad Men Arc of the Opinion
That the Interests ofthe Erie and
New York, susquehanna and west-
ern Have Been United for some-
thing Besides the Good of the An
thracite Coal Trade--Tbe HeraId's
View of the situation.


and Western railroad awakened no
little interest in this city.
The joining of interests of these two
roads will have the effect of making
the Delaware and Hudson railroad
more dependent than ever on the Erie
road for carrying it's coal to tidewater
and it may have the effect of caus-
ing the extension OF the Susquehanna
Connecting railroad to this city and
possibly to Carbondale within a very
short time.
The New York, Susquehanna and
Western railroad was originally the
New Jersey Midland railroad and has
a capital stock of $13,000,O00 common
stock, the same amount of preferred
stock and a bonded Indebtedness OF
$13, 900, 900. AS originally constructed
the road runs from Jersey City to
Grave Place near StroudsburS. For
many years the Delaware, Lackawan-
ma and Western carried the Susque-
hanna coal and freight from this valley
to Gravel Place.
That the Susquehanna might be in
dependent of the Lackawanna q num-
Der of men Interested in the former
organized a company known as the
Wilkes Barre and Eastern and built a
road from Gravel Place to Wilkes
Barre, thus extending the Susquehan-
ma into the heart of the coal fields.
None of the colliaries from which
the Susquehanna takes coal were on its
line however. One was at Greenwood,
two at Old Forge and several more at
Winton.
THE CONNECTING ROADS.
To reach these collieries it was decid-
ed to build a spur from the Wilkes
Barre and Eastern at Paddy's Land in
Luzerne county and a company known
as the Susquehanna Connecting Rail-
road company was organized for that
purpose. A contract was at once let
and several months ago the road was
completed as far as Greenwood. A
sp,ir runs from Moosic to the Old Forge
ccllieries.
1t was the intention to extend the
line to Winton at some future time
but the recent combination may have
the effect of causing the connecting
road to be extended at once to Wlnton
and possibly to Carbondale thus con-
Meeting the Erie and Susquehanna and
making them independent Of the 9TH
er roads of the valley.
T,efore the construction Of the con-
Meeting road the coal from this valley
destined for the Susquehanna road was
taken over the Delaware and Hudson
20 Mill Creek and there transferred to
the Wilkes-B Barre and Eastern The
construction of the connecting road
saved 100000 a year in freight bills
the Susquehanna paid yearly to the
Delaware and Hudson and besides
made it more independent and placed
it ir a better position to handle its
coal.
For a long time the Susquehanna has
| been an uncertain factor in the coal
trade. The companies that had larger
| interests at stake had to constantly
keep on guard against the Susquehan-
ma and not infrequently made import
| ant concessions to that road in des-
perate effort to keep peace in the coal
| trade. There is a general feeling OF
relief among coal men now that the
uncertain factor has been removed by
| the merging of its interests with that
of the Erie which will now have to be
more conservative than ever.
THE ERIE'S ALLOTMENT.
The Erie's allotment of the anthra-
cite tonnage is per cent. and the Sus-
quehanna $40. AS the Erie will get
the Susquehanna's tonnage it will have
altogether an allotment of 7.20. In coal
| circles it is believed that Mr.. Morgan )
move in acquiring control of the Sus-
quehanna is simply another step in the
line of policy he has been pursuing for
some time past of getting a firm grip
on the anthracite coal trade.
"The purchase of this road removes
the last disturbing factor from the an
thracite situation" says the New York
Herald. Mr.. Morgan is the controll-
| ing factor in the Erie, as well as in the
Lehigh Valley and Reading, whose
W arfare long kept the coal trade on d
| losing basis. Several companies, no
tably the Lackawanna and the Della
ware and Hudson, have at different
tir1es had their eyes on the Susquehan-
ma. The desperate condition of the
coal trade FASTENED things, and led
Mr. Morgan and several of the leading
coal barons to make plans to get con-
troll of all the anthracite coal railroads
Mr.. Morgan first obtained control of
the Reading, and then took hold of the
Lehigh Valley. He later joined hands
with the Jersey Central and Lacka-
wanna interests, thereby reaching a
general understanding in regard to the
regulation of the entire coal situation
LAS a result of the Generalization In
the coal trade the Susquehanna two
years ago was reported TO be in finan-
cial difficulties, but arrangements were
made to carry its rioating debt by
strong interests, and it has since done
better. For the fiscal year ended June
30 last it showed a Surplus of $9O3l
over fixed charges, compared with q
deficit of sos. .GC9 the previous year.
APPEARED AS COMPETITOR.
Attention was directed to the Sus
quehanna last year, when the CONTRACT
of the Erie for carrying the Delaware
and Hudson Canal companys coal tC
tidewater expired. the Erie thereby
standing to lose a tonnage amounting
to $1,0O0,000 a year. When the ques
tion of a renewal of the contract came
up the Susquehanna appeared as {
competitor and agreed to carry the Goa
much chearer than the Erie had done
1t was reported at that time that Mr.
Morgan was taking steps to get contro
OF the Susquehanna. The coal con
tract was renewed at a somewhat bet
ter rate.
'It was said that the Erie woulj
probably offer terms to the minority
stockholders of the Susquehanna L
dispose of their holdings at a fair price
or at least would offer fair treatmen
to the minority interests"
There are many in railroad circles
| who believe the controlling of the Sus