Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1902-09-18
GREAT FINANCIAL ALLIANCE
Combination of interests of the
Vandefbilts and the Pennsyl-
vania Railroad System.
ONE OF LARGEST DEALS KNOWN
Vested Rights of Concerns Over
$2,oOo,ooO,ooo.
The Organization VIII be the Most Domi-
necring That Has Ever Been Formed-It
VIII Control the Coal Fields and Trans
portation Facilities East of ST. Louis.
Cleveland, O., Sept. 1s.-The Leader this

Cleveland, o., Sept. 1s.--The Leader this
morning said:
"a financial alliance has been formed by
the two great factors in the eastern railroad
field, the Vanderbilt interests and those of
the Pennsylvania system. The working
agreement has been close in the past, hut Il
has never come to an allotment of territory
and division of property between the two
big houses such as the new arrangement
entails.
The combination grew out of competi-
tive movement OF several months ago. Tho
two big interests were mutually interested
in the bituminous coal fields and in tbs, hard
coal fields as well. The Pennsyly sys-
TEN predominated in the former and the
Nanderbilts in the latter. BY an understand
ing the Nanderbilts yielded the soft coal
fields TO the pennsylvania in return Tor n
similar concession on the hard conl from the
Pennsylvania. The eastern field was threat
ened with invasion by the GouiGs and later
by the Grand Trunk railroad; and these big
financial interests wanted to preserve tho
territory for themselves, and the ties thu. had
been formed by the coal deal were strength
ened in the endeavor to protect the eastern
field. The interests of the two big houses
were growing gradually together. and soon
resulted in an understanding such as has
now been reached.
"a short time ago--just before ". K.
Vanderbilt went abroad-Mr. Cassait, the
president of the pennsylvania, went to New
York to call upon him. This is the meet
ing of which so much was conjectured at tho
time. but so little known definitely. At that
time ii WIS agreed 10 form an offensive and
defensive alliance In the East to completely
control the situation and exclude all others
from the field, except the favored members
of The alliance.
''a'he combination of interests makes one
of the biggest deals that has ever been seen.
The vested riahts of the two big houses east
OF Chicago. TO say nothing of their property
west OF that point, give them a capitalization
OF over s. o0V, GO and mileage OF over
30,JGn.
Thu organization promises to be tho
most dcnineoring that has ever been
formed. The aim If it is to absolutely con-
troll tho transportation facilities in tbs ter
ritory between Chicago and st. Louis, the
Great Lakes, the Ohio River, the Canadian
boundary, the Potomac River and through
to the Atlantic coast. In that territory they
will be subject only TO the interference of
the Interstate Commerce Commission, and
it is their uim 10 block the progress of every
other road which tries to invade that ter
ritory. They also contro. the coal mines,
many of the steel mills and all of the
elevators for the export and irans-shipment
of grain. The roads included in the conf
bination are the New York Central Penn
sylvania, B. d o., @. 4 o., Norfolk Il
Western, Philadelphia II Reading, Lake
Shore. Big -Four, Michigan Central, Nickel
Plate, Boston & Albany. Baltimore u Ohio
Southwestern, Pere Marquette, Hooking
| Valley and Lake Erie h Western"