New-York tribune., 1901-01-08
WILL BUY JERSEY CENTRAL
DIRECTORS OF THE READING ROAD DE-
eide To ACT ON J. p. MORGAN & CO.'S
SUGGESTION OF CONSOLIDATION.


Philadelphia, Jan. THE Board of Directors
Of the Reading Company to-day decided to ac-
cept the proposition made by J. p. Morgan &
Co. concerning the purchase Of the Central Rail-
road OF New-Jersey, and President Joseph s.
Harris viii tomorrow go TO New-fork TO con-
fer with Mr. Morgan and Charles Steele of j. P.
Morgan & Co. regarding the financing of the
deal. Mr. Morgan, as the head Of the banking
house will present the terms upon which the
sale can be effected. and Mr.. Harris and Mr..
Steele as members of the Executive Committee
OF the Reading Company. will take them up and
later report to the fun Board.
The directors held a meeting this afternoon
and reached this conclusion after a session OF
hour and a half There were present Joseph
s. Harris, A. ]. Antelo, John Lowber Welsh,
George c. Thomas Henry A. Du Pont, Henry
p. Mexican and Samuel Dickson. The absentees
We're George r. Baer and Charles Steele At
the close Of the meeting the following official
statement given out:
A meeting Of the Board OF Directors of the Read
ing Company was held at its office at o'clock
Of NeTYO for the sale Of the majority "a Of the
was submitted. President Harris recommended
that the proposition should be accepted. the two
another to the best advantage. and virtually sup
psnept 5 one snStheT giyng win hs reasons in detail
were authorized TO arrange for the purchase
In relation to the price the Reading COM
pany must pay for securing the majority of
The stock Of the Jersey Central prominent
director said that there was nothing in the
letter 10 denote what amount of money would
be required 10 take up the proposition and
that this was the the committee was
authorized to arrange for the purchase Of the
stock 1.-The committee means the Executive
Committee which consists of Joseph S. Harris.
George C. Thomas, John Lowber Welsh and
Charles Steele. Owing to prior engagements
neither Mr. Thomas nor Mr. Welsh will attend
the meeting I'm New-York.
AS 20 the manner in which the money is 70 be
raised TO pay for the stock, IL is said there VIII
doubtless be issued a collateral trust bond bear
ang about 4 per cent interest annually To Sc
cure this bond it is stated. the stock Of the Cen
tral Railroad Of New-Jersey will be deposited
with trustees. At the Office Of President Harris
lso-day however it was announced that this
matter had not been discussed at the meeting of
the directors. II is authoritatively stated that
president Harris will remain the chief eX-
-ecutive officer Of the consolidated companies
While il is generally believed that eventually
fhe Lehigh Valley Railroad Company will pass
under the control of the Reading company. moth
:ng was done in regard TO that company at to-
days meeting of the directors of the Reading
company. The annual meeting Of the Lehigh
Valley company will be held on January 10
A director Of the Reading company, who has
been largely instrumental in bringing about the
absorption OF the Central Railroad of New
Jersey asked to-day IL any other interests
than those OF the Reading company were in
voIved in the purchase He answered, Probably
not" adding that results would not be apparent
Immediately, but would show in the course of a
year or two.
little new information developed yesterday
Eardlng the purchase of the control Of the Central
Railroad Of New-Jersey by the Reading Company,
through J. p. Morgan & Co. The Reading direc-
met in Philadelphia and approved the plan OF
purchase but facts relative TO the method OF
financing the operation made public, either in
that city or here.
The directors Of the Central Railroad of New
Jersey met yesterday. and declared the regular
quarterly dividend Of III per cent. Neither from
them nor from members of the firm OF j. r NOR
gan & Co. however. could the price at which the
New-Jersey Central stock had been purchased be
learned.
How the Baltimore and Ohio is going to be af-
sected by the combination Of the Central Of New
Jersey and the Philadelphia and Reading con-
iinued yesterday to be a topic Of absorbing inter-
est I'm Wall Street. The Baltimore and Ohio issues
were extremely strong in the stock market, and 1t
even was reported that this great property, too,
might be absorbed by the Reading, rumor which
old not have the best kind Of support, as it was
argued that the New-Jersey Central purchase
a logical step in the evolution Of Mr. Nor
san's plans for unication of the anthracite
3uterests while the Baltimore and Ohio was
pecIally identified with the 5ituminous interests
and itself had important voice in the councils
the soft coal roads lying 10 the southwark OF II.
One prominently identified with Baltimore and
Ohio interests said yesterday: Il cannot say any
Thing now in answer 20 your question whether
or not our road is party 20 the Reading-Central
sransactiOn. But you may be assured that the
Baltimore and Ohio viii be satisfactorily taken
care OF. Its advance in the stock market shows
that there is not mucn apprehension that 1t is to
Zoe treated with hostility"
This was the view that Wall Street took OF the
Baltimore and Ohio situation, view which found
its practical reflection IN net gain Of 3s per cent
in the common stock and IL in the preferred Presi-
dent Cogen, OF the Baltimore and Ohio, said in
3ntergiew yesterday in a Baltimore paper:
The Baltimore and Ohio Railroad Company is in
no Way affected by the acquisition of the Jersey
Central Railroad by the Philadelphia and Reading
Railroad Company. For many years our company
has had traffic agreement with the Philadelphia
and Reading and Jersey Central companies. This
agreement will continue without change. and will
81. nowise altered by the consolidation OF the
7nenf was made originally with the Reading Com
lany, which had leased the Jersey Central Com
pany. though, OF course, the latter company was
made party TO the agreement
ing company and the consolidation of the anthra-
cite mining interests are merely the consummation
dent of the Reading company. He the great
possibilities Of such project. He not, how
Is there any likelihood of a movement control
the btuminOus coal interests similar 10 the con-
troll OF the anthracite output? Mr.. COwen was
70. and for the simple reason that biturninous
coal is mined IN every State OF the Union outside
restricted TO one region IN Pennsylvania. It is
readily apparent that bituminous coal is too album
dant and too scattered TO be brought under
management.
OFFERINGS AT THE STORES.