New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-03-16
THE TRANSFER Is EXPECTED
POSITION OF THE NEW YORK. ONTARIO AND
WESTERN
ITS CONTROL BIZ THE NETWORK CENTRAL THE
LOGICAL RESULT OF THE r.. w.
AVN n DEAL.

ITS CONTROL By THE NETWORK CENTRAL THE
LOGICAL RESULT OF THE r.. W.
AND o. DEAL.
The ABSORPTION of the Rome, Watcrtown and og
dcn,burg Railroad b. the New-iofk Central HIS
directed fresh attention to the position OF The .'c"
York, Ontario and Western in the system OF New
York state railways At first glance the TRANSACTION
might be looked upon a. blow at the ontario io'u'
but railroad men who have studied the situation are
confident that the logical result of the Rome deal
will be the ultimate transfer of the control OF tH'
ontario road to the Newl DIRK Central.
70 appreciate the force Of this view IL Is 10 DC
remembered that tho ontario road Is more or less
allied at the present time with the Central SYSTEM
1t is Known that the question of absorbing the ontario
has been under consideration by the |ahderO'.
managers and the principal reason why the control
of the properly has been changed ere this has Deeh
that the Central people have considered the properly
too dear This objection is common TO al ne
gotlations for railway amaleamaon up to certnih
point. The Centras managers decried the value SET
by The owners Of the Rome Watcrtown ana osuehs'
burg upon their property, but the danger vi us
falling into the hands OF the Canadian Pacihc was a
potent argument in finally bringing about the lease
made on saturday, which assures the home SUM .
per cent dividends in perpetuity.
Two directors Of the New-YOrii Ontario and western
are recognized easily as New-l0rk Central friends
They are samuel Barton and william H. fauiuils'
Mr. Barton is believed to be considerably interested
In Ontario securities and he has long been In favor Oh
the Central securing the property. The reorganization
OF the West shore and its transfer to New-lork central
brought that management and the owners OIL the
ontario road into close relations and resulted lii the
tyachage advancement, By which the Ontario enters
New-York over the West shore from CORNWALL 10
Wechawlen, using the latter road for hftythree hes
The Ontario is secured in this advantage uhtil May
II, 2O79, while the Ontario Company has the opuoh
VI terminating the agreement after May L. i'0o
These time limits for such a contract in themselves
Indicate how close must be the relations OF the TWO
systems and what complications might arise disagree
able and huItful to the Central should the latter be
tempted to act under the agreement except in perfect
good faith
At the last annual meeting OF the stockholders OF the
ontario and Western the directors we,c instructed to
prepare plan for dividing the 95o,OOO,OO0 common
stock into preferred and common shares. Although
nothing definite is yet known TO have been done III TINS
direction it is believed that the project has been re
ccivng careful attention from tie Ontario managerS
ne OBJECT Of pCassncaOn vi tile Suck Is 10 ehaDAo
an carrier return the ,ilarehOucFS Oh TIE surplus
Gaming, OF the company which could not be dOe wlth
great amount u common STOCK is no" - OUT
standing The ontario managers might be aolc ID
formulate scheme OF division that woud furnish al
attractive basis 10, hnahcierng to the Ne"-iOih Cell
trail people. ,r,,. :,
Fowler the president has been one Ot steady improve
Icnt the conditions and prospects OF the company
Tie construction last year VI It's branch to scranton,
Itun caIvcd into the Pennsy lvana coal helds, anu
Thereby gave IL a traffic which additional attrdc-
ton to the New York Central II Is pointed out also,
that the capture Of the Rome road by the CenliaI Is
likely 4, inc reasc the Importance OF the ontario ROAD
L. the Canadian Pacific which is seeking TO secure an
independent entrance to New York CITY. WIN the
Canadian Government back Of tie lastnamcd road
financially, there might readily arise circumstances
which wOuld give IL peat power as competitor
for the control of the OntL 10 line.
Besides lis main line from Crnwal! 70 osWeGo' the
Ontario leases lines that tap Rome and Utica aud IL IS
III M
10 the ST. Lawrence River, which would threaten part
of the benefits that the Central expects 10 derive rom
the control of the Rome, WatertOWn ana OguesturS.
The next few months likely TO see some interesting
nauoeuvrcs in northern and central Newi ork railway
matters, and, willie there may be tho same cReIul
cJncealment Of negotiations rs was pTactised IN ue
Rome case the impression of careful observers Is mat
II i, ONLY a question Of time before II Will become
known that NewYOrl Central Is IN control OF ontario
and western.