Omaha daily bee., 1902-09-14
GIGANTIC RAILWAY MERGER
Capital Two Thousand Millions, with Thirty
Thousand Miles of Read.
DEAL is ENGINEERED BY VAEDERBILTs
Pennsylvania and New York Central
Systems with All n Minor
Roads in that Territory
in the Combination.

CLEVELAND, O., Sept. 1S.-The Leader
today prints the following: A financial al
lance has been formed by the two great
factors in the eastern railroad neld, the
Vanderbilt interests and those OF the Penn
sylvania system. The working agreement
has been close In the past. but 1t has never
come to an audacious allotment Of territory
and division OF property between two big
houses such as the new arrangement de-
tails.
The new combination grew out Of a COM
petitive movement OF several months ago.
The two big interests were mutually inter-
ested In the bituminous coal fields and the
hard coal fields as we'll. The Pennsylvania
system predominated In the former and the
Vanderbilts in the latter.
BY an understanding the Vanderbllts
yielded the soft coal fields to the Pennsyl-
vania in return for a similar concession on
the hard coal from the Pennsylvania. The
eastern field was threatened by an invasion
first by the Goulds and later by the Grand
Trunk railroad and these big financial In
terests wanted to preserve the territory for
themselves and the ties that had been
formed by the coal deal we're strengthened
In the endeavor to protect the eastern
field. The interests Of the two big houses
we're growing gradually together and soon
resulted in an understanding such as has
now been reached.
A short time ago-just before W. X. Van
derbilt vent abroad-Mr. Cassatt went to
New York to call upon him. This is the
meeting Of which so much was conjectured
at the time, but so little known definitely.
At that time II was agreed to form an
offensive and defensive alliance in the east
to completely control the situation and ex-
clude all others from that field, except the
favored members OF the alliance.
Enormous Capital and Mileage.
The combination Of interests makes one
OF the biggest deals that has ever been
seen. To consider the vested rights Of the
two big houses east Of Chicago. to say moth
ing of their property west Of that point.
gives them a capitalization Of over $1,000
600. 900 and mileage Of over $4,000.
The organization promises to be the most
domineering that has ever been formed.
The effect OF 1t is to absolutely control the
transportation facilities in the territory be-
tween Chicago and ST. Louis. the great lakes
and the Ohio river and the Canadian boun-
dairy and the Potomac river through to the
Atlantic coast. In that territory they will
legislate rates and conditions and do about
as they please. subject only to the inter-
ference of the Interstate Commerce COM
mission, and II is their aim TO block the
progress OF every other road which tries to
invade that territory.
They are not content with the establish
ment OF a supervision and oversight OF the
transportation facilities OF that territory,
but also control the coal mines, many OF
the steel mills and all OF the elevators for
the export and trsns-shipment Of grain.
The roads included In the combination
are he New York Central. Pennsylvania,
Baltimore q Ohio. Chesapeake a Ohio. Nor
folk q Western. Philadelphia 4 Reading,
Lake Shore, Big -Four. Michigan Central.