New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-04-14
COMBINATIONSI IN THE EAST
PLANS OF THE GREAT RAILWAY LINES
GOOD EFFECT on THE RATE
SITUATION

The report printed yesterday that the New
vorlr Central Pennsylvania combination which
recently acquired an important interest in the
Chesapeake and Ohio and the Norfolk and
Western had gained control Of the Reading. and
also of the New-Jersey Central. found denials
n many authoritative places yesterday. The
sanfals however were Of a technical kind and
7-bfie the report is somewhat exaggerated. yet
the facts published are declared by those in a
rosIrion 10 know 10 be substantially correct
The Tribune some time ago told of the plans
OF foot 10 reorganize the coal carrying roads in
the Eastern territory and establish and main
tain rates upon a firm and equitable basis. The
acquisition Of the Reading and Jersey Central.
in whatever shape il may have been accom-
pushed, IS only a step in that direction.
The rate situation east Of the Mississippi River
IS exceptionally satisfactory TO the railroad op-
orators in al traffic branches save the coal car
rving trade IN this line OF traffic there has been
in the past the widest kind Of slashing and
throat-curtirlg, a fact which Influenced the
Pennsylva New York Central interests in de-
c6ing that the Pennsylvania should take over
control q the Baltimore and Ohio coal carry
ing read.
Some time ago. when the New-York Central
and the Pennsylvania agreed to combine inter
ests and so hand in hand TO work out a reform
H
and restore and maintain rates, the first step
taken was 10 remove the Baltimore and Ohio
from the field as a competitor. This road that
tine in the hands Of receivers vet with
enormous earning capacity and almost unlimited
traffic capacity, was wildly bidding for traffic
blndly cutting rates and keeping up a constant
turnoil. The receivership ended, a policy
adopted and carried into effect by which the
Pennsylvania bought enough Baltimore and Ohio
stock 70 give that road the practical control OF
the Baltimore and Ohio. as, although the stock
owned bv the Pennsylvania is not a majority.
still wsth the members Of the Board elected
through Pennsylvania interests and with the
moral strength the Pennsylvania road is able TO
sxfrr. the latter company is in position 10
irsure the operation Of the Baltimore and Ohio
n harmony with the Pennsylvania and New
York Central.
ONLY A STEP.
The acquisition Of the Baltimore and Ohio was
found 70 be only a step Hardly had the Balti-
more and Ohio arrangement been made when
he Pennsylvania and New-York Central found
there were ramifcations which they had not
counted upon Tie Chesapeake and Ohio, which
runs through Baltimore and Ohio territory,
was known 70 he a fragrant rate cutter. and
virtually incorrigible in keeping rates in cha
otsc state The Pennsylvania and New-Yort
lines followed IN the Baltimore and Ohio trans
action and bought enough Chesapeake and Ohio
stock 10 make them an influential factor in that
corporation Then NJ Z. Ingalls, relieved
Is president and Mr.. Stevens elected in his
stead Mr. Stevens received no instructions
when placed in charge further than TO maintain
rates and co the best he could with the road.
With The Chesapeake and Ohio brought within
the sphere II influence OF the Pennsylvania and
the Nev-York Central. il was felt that the Nor
folk and Western should also be brought into
closer relations with the competing roads
parallelirg il 10 the northward and accordingly
the Pennsylvania purchased a substantial in
terest il Norfolk and Western. The acquisition
OF the Baltimore and Ohio. the Chesa peake and
Ohio and the Norfolk and Western TO a large
extent clarified the rate situation the btuuin-
Gus coal carrying field, but the anthracite
was found to be bitter, widespread and appar-
eltly hopeless. The same skilfuI hands that had
Strengthened out the tangle before, however set
70 work the situation, and the rumOrs about
the acquisition and mergers Of the Reading and
New Jersey Central, II is believed, may be put
down 10 the plans under way 20 bring these
roads under the same control and supervision
From trustworthy source IL was learned yes
ferday that the New-York Central-Pennsylvani
Morgan combination had gone even further than
yesterdays reports would Indicate 1t is said
thar this combination Of late has been quietly
buying Up the stock Of the Reading Erie New
Jersey Central. and Lehigh Valley, and in due
course OF time 8ould be so fntrenched IN these
roads that directors committed 10 the interest
OF the combination would be elected, and the
properties would be operated just the Balti-
more and Ohio, the Chesapeake and Ohio and
the Norfolk and Western are now, in harmonious
relations with the New-York CentraI-Pennsyl-
Tania combine"
MAKE A TRAFFIC ARRANGEMENT
The reports yesterday said that when the
Reading and Jersey Central passed into the
control Of the combination the two roads would
Be merged into the Pennsylvania and the BaIti-
more and Ohio, equitable and satisfactory
division Of the properties being made. and that
the Baltimore and Ohio would gain by this
clear track into New-Yorl City. While there
Is no Likelihood Of any merger or division of the
Properties. even If the Pennsylvania-New- York
DeAlra- interests do get in a position TO super
's- operations il is admitted that the Baltimore
ard OHIO may II the near future make traffic
arrangement with the Pennsylvania, by which
me trains on the Baltimore and Ohio VIII
INTO York over the Pennsylvania tracks.
y is believed that this can be brought about
because the roads are DO longer keen traffic
competitors. but operated along friendly
i-hrs, and therefore the Pennsylvania might
agree ~ BRING in the Baltimore and Ohio trains
amer than continue 10 have them run over the
Present
TINS arrangement would give the Baltimore
a. Ot-lo an independent entrance into New
I'iA cry and make il a complete trunk line
IRON AeN-York 10 Chicago and St Louis The
q. attaEe 10 the Pennsylvania by the carrying
~ d ms contract il is declared would be the
ac4o1alt-on Of the anthracite coal tonnage Of
!" --kesbarre, Scranton and Mauch Chunk
go lS's ~ Pennsylvari which is con-
49, lF The New-JerSey Central. The denials
yesterday were principally Of the announcement