Evening star. [volume] (Washington, D.C.) 1854-1972, 1901-01-05
BIG RAILROAD DEAL
Reading Gets Control Of the Jersey
Central Road.
NEGOTIATED BY ]. P. MORGAN CO.
Valuable Terminal Facilities Ac-
quired in Jersey City.
CHANGES IN MANAGEMENT

NEW YORK. January 5-Oficial an
nouncement was made today that the con-
trolling interest in the Central railroad of
New Jersey, recently acquired by ]. Pier
pont Morgan & Co., has been sold by that
firm to the Reading railroad.
Morgan & Co. state that further details
will not be made public at this time.
]. Roger Maxwell the president Of the
Jersey Central, Is quoted saying that he
understands that the minority shareholders
will be offered the same price for their
shares as has been offered to the majority
stockholders.
The Commercial Advertiser says of the
deal:
1T is understood that the terms are that
the Reading shall guarantee at least per
cent dividend on the Jersey Central stock.
1t is reported that ]. Roger Maxwell, presi-
dent of the Jersey Central, would be presi-
dent of the Reading.
The two roads nave been working close
together for year, having perfect agree
ment upon rates and the distribution Of
| traffic. The acquisition Of ownership by
the Reading in the Jersey Central will,
however have some further advantages.
For thing, the Jersey Central can be
made to carry most Of the coal. 1t Is the
more natural route from the mines to tide
water, and the Reading has been gradually
General Business Increased.
Goal was once IS per cent of the Read
ing's business. Now its business has de-
veloped along other lines, so that only 40
per cent of its general business is coal.
The miscellaneous traffic can be developed
still further
THE combination will take rank as one
of the few very large ones which have
ever been attempted in this country. The
size of the transaction is best gagged from
observing the figures of Jersey Central's
bonded debt and stock issue. Its total
bonds are $47. 192,900, on which an annual
interest of 81 361 45S is paid. In addition.
Jersey Central guarantees interest of s93l'-
632 on bonds of leased lines amounting to
so, 2J6, 692 These leased lines include the
New York and Long Branch railroad, the
Lehigh Valley and Hudson railroad and
the Lehigh and Western Coal Company.
THE total issue of Jersey Central stock
is S27 113 800. On this dividends of Z per
cent were paid in 1892. 1893 and 1894, 5la in
1895, s in 1896. 4L4 in 1897, in 1898 and 1899
and per cent in 1SvO
To Succeed President Harris.
PHILADELPHIA, January 5.-The Even
ing Telegraph today says: I'm connection
with the offering of the New Jersey Cen
trail railroad to the Philadelphia and Read
ing Railway Company it is asserted that j.
Rogers Maxwell, president of the New Jer
sey Central, is to succeed President Harris
of the Philadelphia and Reading company
and will assume the management of the
two roads.
Vice President Voorhees,, the same au-
thorty has ii, is to assume direct charge
of the management of the Philadelphia and
Reading railway end
The significance of the entire deal in
addition to its anthracite coal output con-
nection, lies in the fact that the Philadel-
phia and Reading Railway Company gains
its Jersey City and New York terminals
while the Baltimore and Ohio Compa ny
must use leased lines, or be operated over
the Pennsylvania system Another end Of
it is the talked Of through connection with
the west, and those who are best posted
are of the opinion that the next move of
the Morgan interests will be to acquire the
Buffalo. Rochester and Pittsburg railroad,
which is the connecting link between the
Philadelphia and Reading and western
trunk lines"