The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-09-13
GREAT RAILROAD
COMBINATION
The Vanderbilt Interests and the
Pennsylvania System Said to
Have Come Together.
Supreme in the Country Between
Chicago, St. Louis and the Great
... Lakes to the Coast.
Coal Mines, Many Steel Mills and
: Grain Trans-shipment to
O.. Be Controlled.

Cleveland, O., Sept. 13.-The Leader
says that a financial alliance has been
formed by the two great factors in the
eastern railroad field, the Vanderbilt in
terests and those of the Pennsylvania
system. The working agreement has
been close in the past, but it has never
come to an allotment of territory and
a division Of property between the two
big houses such as the new arrangement
entails. ~- --H-r -.TZs+,Ls4
The new combination grew out of a
competitive movement of several months
ago. The two big interests were mutu-@
ally interested in the bituminous coal
fields, and in the hard coal fields as well.
Inc pennsylvania system predominated
In the former and the Vanderbilts in the
latter. By an understanding the Van
derbilts yielded the soft coal fields to the
Pennsylvania in return for a similar con-
cession on the hard coal from the Penn
sylvan1a. The eastern field was threat,
ened by an invasion first by the: Goulds
and later by the Grand Trunk railroad
These ties that have been formed by
the coal deal were, strengthened in the
endeavor to protect the eastern field.
The interests of the two big houses were
growing gradually together, and soon re-
suited in an understanding such as has
been now reached. -,
A short time ago-just before w. K.
Vanderbilt went abroad-Mr. Cassatt
the president OF the pennsylvania rail-
road, 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
it was agreed to form an offensive and
defensive alliance in the east completely
to control the situation and to exclude
all others from that field except the
favored members Of the alliance. =
The community 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 nothing of their property west
of their property west of that point,
gives them a capitalization of over
g. 600, 900, 900 and mileage of over 80, 600.
The organization promises to be the
most domineering that has ever beeen
formed: It's aim is to control absolutely
the transportation facilities In the ter
ritory between Chicago and ST.; Louis.
the great lakes and the Ohio river, and
the Canadian boundary and the Potomac
river, through to. the south Atlantic
coast. In that territory they will legis-
! late rates and conditions and do about
as they please, subject only to the in
terference Of the Interstate commerce.
| commission: It 3 is their aim to block
| the progress of every other road which
! tries to invade that territory. They are
| not content with the establishment Of
| supervision and oversight Of the trans
portation facilities of that territory, but
also control the coal mines, many of the
steel mills and all of the elevators for
the export and transshipnent of grain.
The roads included in the combine are
| the New York Central Pennsylvania
Baltimore & Ohio, Chesapeake & Ohio,
Norfolk & Western, Philadelphia & Read
ing, Lake Short Big Four, Michigan Cen
trail, Nickel Plate, Boston & Albany, Bal
| timore & Ohio Southwestern, Pere Mar
quette, Hooking Valley and Lake Erie
! & Western. - =
! It is one Of the biggest movements of
| it's kind that has ever been seen, and 1t
is considered not at all improbable that
presently further Capitalization of con-
troll of railroads will take place with the
ownership made triangular with Morgan
as the third leg.