Perth Amboy evening news. [volume] (Perth Amboy, N.J.) 1903-1959, 1906-02-13
P. R. R. OWNS
CONTROL OF
THE TROLLEY.
Big Deal Made Whereby the
Public Service Passes Into
Control of Rival.
MORGAN FIRM, TOO.
Philadelphia and New York Cap
ital Control the Companies
Of North Jersey.

days, ii was said in Newark, yester-
day, formal control of the public util-
tiles companies, now in possession,
by virtue of long leases or outright
purchases, of the Public Serviee Cor
poration will become vested in New
York and Philadelphia capitalists.
Since May, 1903, the big corpora
ton, which controls and operates $50
miles of street railways-pr
everything of that kind in New Jersey
and all the big gas and electric
lighting concerns in the country, has
been managed by New Jersey, and
chiefly Newark, interests, with Thom-
as n. McCarter as president and the
Prudential Fidelity Trust interests at
| it's back.
! Notwithstanding the spending of
several millions of dollars in i'm
provements, particularly in the troll
ley end of the concern, the wonderful
betterment of the service which was
promised did not materialize and
there We're constant complaints from
every part of the system. This con-
dition is now said to have been due
TO lax methods of management.
/ Seeking Outside Capital.
1t was deemed wise to so arrange
the matter that large outside inter-
ests would become involved and take
up the properties with renewed en-
ergy and backing of millions of cap
ital. Some time ago Dr. Leslie ID.
Ward, vice president of the Pruden-
tial Insurance Company, of which
United States Senator John F. Dry
den is president, took up the whole
proposition with A. J. Cassatt. Then
Thomas n. McCarter, president of the
Public Service; Uzal H. McCarter.
president of the Fidelity Trust Com
pany, the fiduciary agent of Public
Service; Senator Dryden, Randall
Morgan, of the United Gas Improve
ment Company, of Philadelphia. and
others, came into the conference.
The plan now proposed was evolv-
ed and has been brought to PRACTICAL
ly finish by Mr.. Cassatt, represents
ing the Pennsylvania Railroad inter-
ests; Randall Morgan and Thomas Do
Company; DR.. Leslie D. Ward, for the
Prudential-Fidelity interests: former
United States Senator James Smith,
for Sc n Newark interests, includ-
Ing h r Jwn large holdings in num-
Der Of the underlying companies, and
a New York banking firm
Under the new arrangement the
-n..s1- s,,4 1.
control of only about one-third OF the
Public Service, while two-thirds con-
troll will be in the hands of Cassatt.
the New York banking firm, and the
nited Gas Improvement interests of
Philadelphia. One of the first things
to be done when the deal is complet-
ed, it is said, will be TO put on the
market S12, 100000 Public Service
stock which has not yet been issued
from it's treasury and thus bring to
the limit its s25,000,000 stock au-
thorization under its charter.
Senator Dryden Reticent.
United States Senator Dryden re-
turned from Washington to his home
in Newark last night Asked about
the deal whereby the greater portion
of the control of the Public Service
Corporation is to pass to New York
and Philadelphia capitalists, he an
swered that little of the details of the
new arrangement can be given at this
time
The general proposition, as it has
already found its way into the news
papers, is about correct" he said.
Newark will retain about a one
third control of the big aggregation
of properties. The other two-thirds
control will be vested in a New York
banker in the manner that has been
stated and in the United Gas I'm
provement Company and its financial
men of Philadelphia.
Mr.. Cassatt is of course a big fac
tor in the matter. When the negotia-
tions now under way are eonsummat-
ed and details of the plan completed
it will mean more to Newark than
any happening of years, in many
ways 1t will also interest much out
side capital by providing a new field
/ for the securities"
Senator Dryden, in answer TO an
other question, said with emphasis
that any story about the Prudential
Insurance Company having a heavy
interest in the Public Service Corpor-
alton is without foundation.
THE Prudential holds some of the
securities of the underlying compan
ies,' he said. but does not own a
collars worth o. Public Service and
never did" A