New-York tribune., 1900-12-14
HILL AND REAM IN ERIE.
EXTENDING THE COMMUNITY OF IN
TERESTr PLAN.
GREAT NORTHERN AND NORTHERN PA
CIFIc INTERESTS AGAIN ALLIED.

Exchange, and all sorts of theories were put IOr-
ward by Wall Street to account for the phenome-
non. The solution was believed to have been
found week ago. when IT was ascertained that
negotiations were in progress looking to the
removal of a potentially dangerous competitor
through the acquisition. by interests identified
with the Erie. OF the Pennsylvania Coal Com
pany, which had been planning the construction
Of an independent railway from the anthracite
coal fields to tidewater at Kingston, N y. With
the formal announcement late yesterday, how
ever of the practical contamination of that ar
rangement came another development of the
highest Importance to the Erie Railroad Com
pany in the issuance of the following notice;
At meeting of the Board Of Directors Of the
Erie Railroad Company held to-day James J.
Hill, of the Great Northern Railway company ny
Norman B. Ream of Chicago, director or the
Baltimore and Ohio and Pullman companies
and Robert Bacon. of ]. p. Morgan & Co. were
elected directors in the place or Messrs Qulh-
tard, Goodwin and Williamson
The Erie Railroad Company has since its re-
organization in 1895 been regarded as Morgan
property AS such it has followed that the road
would not figure as a rate disturber, for Mr.
Morgan's policy is we'll understood to be pro-
nOuncedIy conservative in this respect Recent
ly, however. the plan of community OF owner
ship instituted by the Pennsylvania and the
New-York Central has been gaining rapidly In
favor among railway managements. IN the
East the Baltimore and Ohio. the Chesapeake
and Ohio and the Norfolk and Western have
come within it's influence and only month ago
it was learned that it had been put into opera
ton in the Northwest, several important hnan-
cia interests increasing their holdings in North
ern Pacific and Great Northern so materially
as to become the largest individual sharehold-
ers OF both corporations; position enabling
them to exercise a powerful and compelling in
huence toward the preservation of harmony be-
tween the two big transcontinental rivals
Now. James J. Hill and his close business as
sociate Norman 3. Ream, Of the Great Northern
have entered the Board of the Erie Railroad
Company which is controlled by j. Pierpont
Morgan, who is the controlling force OF the
Northern Pacific. Mr.. Hill and Mr. Ream are
both members Of the Executive Committee of the
Baltimore and Ohio Board. and their entrance
irto the Erie directory. undoubtedly upon the
invitation Of Mr.. Morgan, seems not only to be
confirmation Of the assumed fact OF permanent
harmony in the railroad field in the Northwest
but also to mark purpose to place the Erie IN
line with the Baltimore and Ohio and the other
coal carrying roads in the ownership and opera
ton of which the community of interest prin-
ciuIe prevails, and to change its present charac-
ter as distinctively Morgan road"
1t is believed, too. that another reason for the
advent Of Messrs Hill and Ream into the Erte's
councils may be their cooperation with MI Nor
gan in the financing of the purchase Of the Penn
syIvania Coal Company, through which the Erie
Is expected TO benefit so largely.
The Erie is now controlled by voting trust.
composed Of J. Pierpont Morgan. Louis Fitzger-
aid and Sir Charles Tenant. The voting trust
was constituted in 1895. to continue for fve
years and thereafter until the first preferred
stock should receive 4 per cent cash dividend In
one year 1t / sreported that this dividend will
soon be declared. and the voting trust dissolved
The Erie issues as already noted. have recently
made large advances. Three months ago the
common sold as low as 1912 the first preferred,
3Oss. and the second preferred. Is. Yesterday
the common closed at 2015, net gain for the
day of 2A per cent; the first preferred sold up
TO 525s the first time it had ever crossed 90 and
closed at 515s net advance Of 3$s per cent. and
the second preferred touched S414 closing at "a
net gain. 39s per cent.
The strong hands which have taken hold of
the Pennsylvania Coal Company and merged it
into the Erie road and reorganized the Board
Of Directors of that property to insure harmont-
Gus operation with the Baltimore and Ohio,
Pennsylvania, Southern and other big systems
are looking not so much to immediate profit as
to future operation. A prominent railway man.
and ole who is in a position TO know just what
is going on, said last night:
prnes pre- abnoPmaIly high lust as the price of
steel iron and other materials rules higher than
normal. The time is coming when lower prices Will
be the rule Nevertheless America for many years
TO come will supply the markets OF the WorlG Win
and allied properties. such as the Chesapeake and
Ohio the Norfolk and Western and others are pre-
pairing for huge export trade Ihey are oullolns
and chartering freighters Of enormous capacity
and arranging for docking facilities and tide
water terminals and transportation on the
crescent OrasP and the high prices money can be
made easily. This has led TO. if not justified
in mining and Transporting coal The n ~ time es is com
ing "nen Go59 1nst follow The men who com
troll the situation are preparing for this They in
rate slashing undue favoritIsm and close opera
ton. The old time Of careless operation is being
fcient operators will be placed in control OF the
railroad & pr PIsd an5 sd an minimum
expense By unifying all these coalers and coal
Of these properties will be able to save great
deal OF money in mining and transporting and to
sustain the price OF coal at a normal level
Much attention is being given to the West
Virginia coal fields now. The coal properties ly-
ing along the Chesapeake and Ohio and the
Norfolk and Western are of exceptional rich
ness. and the coal has eoking properties said TO
be quite equal to those Of the famOus Connells-
Vile district. The coal in the latter territory
has all been absorbed by the Carnegie-Frick-
Rockefeller combination for use In the manu-
facture OF steel and other enterprises. BY this
control OF the Pennsylvania Coal Company the
railroad combination has 1ecured the only big
coal company left in the anthracite
region and now controls the situation in that
territory Railroad development In the West
Virginia region upon huge scale Is contem-
plated and much money has been quietly spent
in acquiring valuable coal properties in that
region Some widespread changes in operating
departments are looked for.
II was said yesterday that George W. Stevens.
president OF the Chesapeake and Ohio, would
retire soon. Mr.. Stevens was formerly general
manager Of that road, and was made president