New-York tribune., 1901-01-06
SOLD TO THE READING.
THEJERSEY CENTRAL BOUGHT
FOR 1T BYJ p. MORGAN.
WALL STREET SURPRISED-POSITION OF
THE ANTHRACITE ROADS IMPROVED
BALTIMORE AND OHIO SHUT OUT.

Yes, IL IS true that have bought the control
Of the New-Jersey Central property. and have
offered it to the Reading Railroad. and they
have accepted IL"
So much j. Pierport Morgan would say yesrer-
day afternoon. in confirmation OF the two line
which at noon yesterday. at the
very close OF the market gave Wall Street one
Of its genuine surprises. although this ire
mendous operation had more than once within
the last year been rumored 10 be in contempla-
tion- AS to the price paid for the control. the
nature of the arrangement under which the
Philadelphia and Reading is TO operate its new
acquisition and the plans for financing the pur-
chase, Mr. Morgan declined to say word.
In yesterdays erratic market the stocks Of the
two roads mentioned were firm and advancing.
New-Jersey Central sold as high as 100. and
closed at 157. a net gain for the day Of 23s
points, OF the Reading issues about 215sOOO
shares changed hands. The common advanced
5ls points. closing at 1915; the first preferred
gained points, the close being at "a. and
the second preferred advanced S14 points. clos
ing at 451l- All these securities have made big
advances in the last few months The rumor
that the Reading had secured control Of tho
New-Jersey Central. as further step in the
plans which Mr.. Morgan has been putting grad
ualIy into execution in the last two years for
the Improvement Of the anthracite situation, had
been family heard in the last day OF two in tho
financial district. but general credence was
given TO it, as the popular theory had been al
along that the Central would pass under the con-
troll Of the Baltimore and Ohio. as an extension
OF the application Of the Pennsylvania-Nsw-
York Central agreement of July. 1899.
The Baltimore and Ohio uses the PhiladelphiA
and Reading tracks from Philadelphia TO Bound
Brook. N. j.. and both OF these companies como
into Jersey City from Bound Brook over the
poSrr
has at Jersey City exceptionally extensive and
valuable terminals. the possession Of which by
the Baltimore and Ohio. ii has been urged. would
greatly strengthen the position OF the latter
a trunk line road
1t was reported yesterday afternoon that tho
arrangement with Mr. Morgan for control OF
the Central was defeat for President Cassatt.
OF the Pennsylvania Railroad Company. who. IL
was said, had several months ago. when New
Jersey Central was many points below It's pres
ent figure. offered to purchase the controlling
interest at 150. acting for the Baltirnors and
Ohio. in the management of which the Penn
syIvania is now dominant This rurnors how
ever. was absolutely denied by leading New
Jersey Central interest. There no antago-
nism to Mr.. Cassatt he said. There had been
negotiations with tsa Rslrirnore and Ohio. but
the Reading interests had simply got In ahead
of them
HOW 1T WAS HELD.
The controlling interest In the Central Rail
road Of New-Jersey is commonly understood 10
have been held by a small group Of men. among
whom are George f. Baker and f. c. Fahne-
stock. respectively president and vice-president
Of the First National Bank. and y R. Maxwell.
president OF the road. President Maxwell said
yesterday: 'The sale is the result of personal
negotiations between Mr. Baker and Sir. Nor
gan, and has been pending for some time What
price was paid? Well. IL the purchaser will not
state the price. II IS hardly seennly that the
seller should. The minority shareholders. how
ever will get the same price for their stock as
the majority shareholders are to receive. No. IL
is not true that the New-Jersey Central owns
100000 Of Lackawanna Railroad stock
''They buy the control OF the Central How
they will operate il is no concern Of the sellers
As to your question about a possible consolida-
ton Of coal selling agencies 20 follow the change
Of control Of our road. may say that there
is nothing particularly new I'm that. They have
had that in mind for some time. and under
stand they have some such idea in mind now"
While no trustworthy information could be
obtained yesterday as 20 the basis on which the
Reading would take over the Central. IL waS
reported that the arrangement would take the
form Of a long lease. with a guarantee OF at
least 8 per cent dividend on the New-Jersey
Centraps stock That road has authorized
capital of SSOO00.OOO. OF which S27.113,soo IS
outstanding. on which per cent dividend was
paid last year. IN 1S9S and 1899 the dividend
rate had been per cent, in 1891 per cent In
1896 per cent. in 1895 51a per cent. In 1894.
1898 and 1892 per cent. in 1891 61s per cent
and IN 1880 per cent
The authorized issue Of general mortgage
Of oh,
ing S43. .924, 900 There are also equipment mort
gage per cent bonds amounting TO 81. $4,000.
payable in 10 per cent instalments yearly ON
June l. The bonds are secured by consoli-
dated mortgage taken out in 1874 OF S1,I6G.OO0.
bearing per cent interest. There are also
per cent debentures. convertible into stock,
amounting to S372. 500. and per cent real estate
bond and mortgage Of S119. 100. The amount OF
guaranteed bonds is S14. 1862 also s6.116,0OO
OF additional outstanding consolidated mortgage
bonds OF the Lehish and Wilkesbarre road
These bonds are owned by the New-Jersey
Central
The Philadelphia and Reading Railway Com
pany (Which owns the railroad, but no equip
menO and the Philadelphia and Reading Coal
and Iron Company are both owned by the Read
ing Company. which has authorized capital
Of S10Ooo0o0. OF which all except 100000 Is
outstanding. and S2SO01oOo or per cent Erst
preferred stock and S42.ooo.OoG Of second pre-
ferred- All classes of stock of the new company
which is q reorganization of the old railroad
company and the coal and iron company, sold
under foreclosure in September. 1896, are held
by a voting trust composed Of J. PierpOnt Nor
gan. F. P. olcott and c. s w Packard. There
is a general mortgage OF S135.O00O0G OF 4 per
cent guaranteed bonds. the amount now OUT
standing being S6a a99i 600 Car trust bonds