New-York tribune., 1901-01-07
PRICE THREE CENTS.
MORGAN HAS THE LEHIGH.
1T FOLLOWS JERSEY CENTRAL INTO
GREAT CONSOLIDATION.
J. P MORGAN AND his FRIENDS NOW COMPLETE
LY DOMINATE THE ANTHRACITE COAL
CARRYING SITUATION.


Just at the close of the market on Saturday
as announced in The Tribune yesterday. Wall
Street received the startling news that ]. Pier
pont Morgan had bought the Central Railroad
OF New-Jersey and sold it 10 the Reading Rail-
road When the market reoDens this morning
IL will be confronted with the additional news
that Mr.. Morgan has secured the controlling IN
terest in the Lehigh Valley also, and this inter-
est will probably be offered 70 the Reading at
the meeting of its directors. which has been
called for to-day to complete officially the pur-
chase and arrange for the formal transfer of
the Jersey Central stock to it's new owners.
Thus the two long strides which bring the
Morgan following into practically complete con-
troll Of the coal carrying railway situation in
the East have been made in quick succession
Naturally the question asked by many Wall
Street men yesterday was. what next?' And
by way Of answer some pointed to the ap-
parently awkward situation in which Baltimore
and Ohio has been placed by Mr.. MOrgan's lat
est deals. That road is now cut OF from all
entry into Jersey City except over lines con-
trOlled by Mr.. Morgan and his friends. Some
of the closest observers say there is not the
least fear Of Mr. Morgan putting pressure upon
the Baltimore and Ohio because he has attained
the better strategic position They say that is
not his way, and. moreover. they point TO the
fact that ]. ]. Hills interests in the Baltimore
and Ohio are we'll known. and the relations
Gently established between Mr. Hill and Mr.
Morgan through the St. Paul deal are close and
friendly.
Other probabilities Of the not distant future
are an alliance between the Ontario and West
ern and the Delaware and Hudson The Della
ware, Lackawanna and Western is also
garded by some game for Mr. Morgan's has-
ket. 1t is controlled by Vanderbilt and First
,FoT, I,74t,
able to him.
Those who profess to see in these cOnsolds-
tions both completed and projected. one definite.
farseeing purpose, say that purpose is rather
National than local in it's scope, and looks TO
nothing less than joint control Of all the rail-
roads of the United States. Persons who take
this view say that not only does the Morgan
following already control the avenues approach
ing New-York, but commands practically every
means of access to Boston, Buffalo, Philadelphia
and most Southern points. Nor, they declare, is
the movement toward consolidation confined to
the East alone. The next step in the syndicate
plan is alleged to be the requirement OF the
Buffalo Rochester and PittsbUrg system, Oper-
ated largely in Central and Western New-York.
and providing a direct connection between the
Reading and all the great trunk lines in the
West.
The recent sensational absorption Of St. Paul
is taken as only a preliminary advance upon
the Far West. the Middle West being already
pretty well occupied by Mr.. Morgan's friends.
who already control, it Is said, all the overland
highways of commerce to Chicago and St. Louis
with two exceptions.
Coming back to what Mr. Morgan has really
i accomplished. it is seen that by the purchase
/ Of Jersey Central and Lehigh Valley he and
his associates now dominate the anthracite coal
trade; for they are absolute masters Of rail-
roads that mine and carry about 100000
tons of anthracite out Of annual production
of something less than 5O,OOOOOO tons. This
| total is approximated thus:
Reading about.
Erie and the Penn Coal company -1OOOOOOO
Total 100000
1t may fairly be presumed. therefore. that il
Mr. Morgan ever seriously entertained the
proposition attributed to him of establishing
joint selling agencies and doing away with cuts
in coal prices as we'll cuts in freight rates.
he would now put it in operation A prominent
railroad man told Tribune reporter yesterday
that Mr. Morgan not at all likely to estaO-
Iish joint agencies. simply because there was
now no need for them. the regulation Of the
price of coal and freight rates as well being
practically now in the same hands.
A number of New-Jersey Central directors
who were seen by Tribune reporter yesterday
declined to reveal anything concerning the terms
on which their stock sold TO Mr. Morgan
Estimates range all the way from $3.50 TO SzUO
Indications point to S1T5 probably the cor
rect figure and it is said that payment will be
made by the Reading company by means or
~ "a - interest bearine collateral trust bonds
] Rogers Maxwell, president OF the NeW-JerSsy
Central said he did not know whether ne would
remain president not nor did ne SNOW
whether President Harris OF the Reading would
remain in his position not All that MI MAX
well would say was that he had not resigned