New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-03-15
THE ROME ROAD ABSORBED
LEASED TO THE NEW YORK CENTRAL.
,EGoTIATIoNs RAPIDLY AND QUIETLY CARRIED
on AND CONSUMMATED.

NEGOTIATIONS RAPIDLY AND QUIETLY CARRIED
on AND CoNSUMMATED.
There was a formal transfer Yesterday at noon OF
.be Rome Watertown aud Ogdensburg Railroad TO
tbe New York Central Railroad. under the lease
cuted TO the latter road. The terms OF the lease,
which covers the existence of the charter Of the
Uo,ne road and its renewal, provide for the guaran
,ee by the NcwYOi Central OF tie interest obligations
~ the Rome WatertOwn and Ogdenshnrg and per
cent OH the capital stock Of the lessee company The
rental 10 be paid by the NcwYork Central amounts 10
nearly $4,000 and the fixed charges assumed run up
10 between 100000 and 100000 per annum. by
the ACQUISITION OF the road however, the Central eff
fectuay blocks the possible utilization Of the Rome
road By any hostile corporation, whether Canadian or
American.
The negotiations for the lease Of the Rome road
were conducted by President Chauncey NJ. Depcw OF the
New York Central and President Charles Parsons OF to
Rome, Wacrtown and OGdenshurC. on Friday the
directors of the latter road approved the lease and yes
terday morning the Central directors acted oihciay
At the Office Of ex-Judge Ashbel Green, In the West
Shore offices Just across the street from the Gfahu
Central station, the papers executed for tho trans
fer Of the Rome road to its new Landlord. The stocR
market may have suspected the fact for there was
sudden jump in the price Of Rome stock and the gen
eral list materially higher.
The campaign for the control Of the Rome ROAD was
conducted skfully The Rome. WATERFOWL and
Ogdensburg proper from suspension Bridge 10
Massena springs, a distance of 200 miles. The COM
pany controls branches covering 1O1 miles and by the
lease Of the Utica and Black River Railroad. on April
1G 1886, it added $50 miles more to its mileage. J"
was the capture Of this line which brought prosperity
TO the Rome Watertown and Ogdensburg, as the Utica
road taps big manufacturing region which can De
stimulated by lower rates than the Utica road charse
The NewYork Central formerly dominant In the
affairs of the Rome and Utica roads. The death OF
William II. Vanderbilt Influenced his sons for some
time and they permitted these lines to pass into inc
control of Charles Parsons, who, besides possessing
considerable wealth. has aggressive disposition when
gives the force of superior capital hard tusae
In any contest. Mr.. Parsons and his colleagues le-
habilit, ed the Rome, WatertOwn and Ogdensbures
finances largely through their acquisition OF the Otca
and Black River road began to pay dividends on tho
stock of the Rome road, built into territory previously
mOnopolized by the New York Central and became
possible link in the arrangement of new trunk route
between New-YOrk State and the West and New Eng
land. This aggressive spirit set the Central people 10
thinking and it gradually realized that the Rome
road must be killed" or absorbed. The organization
Of the Mohawk and It. Lawrence company, whose ROAD
intended to parallel the most profitable part OF
the Rome. WATERFOWL and Ogdensburgs system, was
decided upon. The threat effective in reducing
the margin Of difference between the ideas of tho
Central and the Rome managers TO the deal which
has taken place. 1t remains r. b. determined
resolved to reconQuer will be left safe from foes II
has not lost its fertility nor It's rich possibilities is
open to invasion whenever the spirit of capital is
turned in that direction.
The charter of the Rome, watertown and Ogdens
burg for 500 years The lease by the Central
the charter and all renewals. Tie last available re
ports from the Rome, WatertOwn and OEdcnsburg
place its capital stock at - 991 200, exclusive how
Of the 81 $4,000 stock of the Utica and Black
River, which is exchangeable for a security that
guarantees per cent by the Rome, WatcrtOUn and
Ogdensburg The funded Indebtedness which the New
York Central assumes is S1.76 600 from which should
be deducted the stock OF the Utica and Black River
road, which has been stImpcd with the guarantee
of the Rome. Watero"n ANA OgdcnsbCrg, TO The eX
tent OF about half Of the issue.
The total stock of the Rome. Watertown and ogdens
burg Company, is now S7l0O,OiO. A meeting OF
the directors held Friday ordered the declaration OF
a scrip dividend TO the amount of 20 per cent repre-
sentng the restoration to stockholders in sub
stantal form OF earnings which have been put
into Improvements upon the property. The action
OF the board previous to the conclusion of the neg2,
tatiOns for the transfer OF control Of the Rome road
has been jocularly commented npon as moderate
decision hecausc Of fc .!t u declaration of
III. Walter Webb left New York City Friday night
for OswesO 10 make the derS necessary for the trans
fer OF the physical control OF the Rome road to the
New York Central. President Lepcw teleenphcd t.
Mr.. Webb the completion q the CAREFUL concealed
negotiations, and Mr. webb Stnt out Official orders
TO the stan OF the Rome road.
Mr. Depew said yestC day that the transaction by
which the Central gains control of tn- Rome road
an excellent one for the New York Central The union
of the two systems advisable. and it had been
accomplished slight cost 10 ne NewYor, Central.
j. PierpOnt MORAN cAprt "C h~ %':t hcatiUp e the
successful completion of the ncgOt atons which
tie Ncw-YoTk Central control IN Northern Me-" iorh.
The news came TOO late Ia Wall street to show It's
full force in raising values.
Til" swiftncss with which the transaction was con
Quoted may he disappointing 70 Tie men who some
times their lega. knowledge and t.eir personal
influence to start suits that impede the unifcaton of
railway systems.