The Montgomery advertiser. [volume] (Montgomery, Ala.) 1885-1982, 1902-09-14
THE ZEAL IS GIGANTIC
Capital Of the Merged Com
panies to be 81, 900, 900, 900
The Alliance to Absolutely Dictate
Freight Rates from st. Louis
to the Atlantic Coast.
Outline Of Scheme.

Cleveland. O.. Sept 13.-The Leader
this morning prints the following in part:
"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 closed
In the past, but it has never come to an
audacious allotment Of territory and
division of property between two bug
houses such as the new arrangement
entails.
Grew Out Of Competition.
THE new combination grew out Of a
competitive movement of several months
ago. The big interests were mutually
interested in the bituminous coal fields
and In the hard coal fields as well. The
Pennsylvania system predominated in the
former and the Vanderbilts in the latter.
BY an understanding the vanderbilts
yielded the soft coal fields to the Penn
sylvania in return for a similar con-
cessions on the hard coal from the Penn
sylvania. ihe eastern fed was threaten
ed by an invasion. first by the Goulds
and later by the Grand Trunk Railroad.
and the big financial interests wanted to
preserve the territory for themselves, and
the ties that had 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 resulted in
an understanding such as has now been
reached.
"A short time ago-just before w. K.
Vanderbilt went abroad-Mr. Cassatt, the
president Of the Pennsylvania Railroad.
went to New York to call upon him.
This Is the meeting of which 50 much
was conjectured at the time, but 90 Lille
known definitely At that time it was
agreed TO form an offensive and defen-
sive alliance in the East TO- completely
control the situation and exclude all
others from that field except the favor
ed members of the alliance.
The Deal Enormous.
''The combination of interests make 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
that point gives them a capitalization
of over $1,000 000, 600 and mileage Of over
SO.tvv.
1.-THE organization promises to be the
most dominating that has ever been
formed. The aim of 1t is to absolutely
control the transportation facilities in
the territory between Chicago and St.
Louis. the Great Lakes and the Ohio
River, and the Canadian boundary and
the Potomac River. through to the At
lantic coast In that territory they will
legislate rates and conditions. and do
about as they please. subject to the in
reference of the Interstate Commerce
Commission. and It is their aim to block
the progress of every other road which
tries to invade that territory.
Control Coal Mines.
'They are not content with the estab-
lishment of 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 trans-ship-
ment of grain.
1.-The roads included in the combination
are the New York Central, Pennsylvania.
Baltimore and Ohio. Chesapeake and
Ohio Norfolk and Western, Philadelphia
end Reading. Lake Shore. Big Four.
Michigan Central Nickle Plate. Boston
and Albany. Baltimore and Ohio South
western, Pere Marquette. Hooking VAL
ley and Lake Erie and Western.