The Providence news. (Providence [R.I.]) 1891-1906, 1892-12-31
The RAILROAD DEALS.
What Is Now Going On among the
New England Railroads.
WHAT THE VARIOUS DEALS MEAN
The Aims, Methods and Objects or the
Mon Who Are Trying 70 Manipulats
the Railroad Properties OF New Eng.
land for Consolidation"

Boston, Dec. 3l.-To the ordinary ob-
server chaos seems TO reign in the rail-
road situation of New England. The
manner In which it is to be reduced to
order Is theme of widespread discussion
out no one pretends TO speak with any
definiteness on the situation. What most
persons seem agreed in believing is that
the recent movements in the railroad
world indicate policy which may be
easily pushed too far, and made to result
in disaster.
The stock market has acted during the
past week IN way to give rise to vari-
ety OF ruinors regarding the solution of
the railroad problem. Perhaps the fsa-
lures TO excite most discussion have been
the fluctuations in New York and New
England and Manhattan Elevated. These
nave been held 70 point so strongly TO
the theory advanced some time ago that
the New York and New England was ar
ranging deal by which it. would enter
New York city over the New York and
Northern and the Manhattan. The Man
haitian, therefore. was, according to tn,
rumort being acquired by parties fayora-
ble to the plan outlined. We have this
week heard that the parties acquiring
Manhattan lately have been the Wander
bilts. and That their object has been to de-
feat any such entrance into New York bv
the New York and New England. We
have also heard that they have succeeded
In securing control OF the Manhattan.
"A much more probable outcome of the
situation is consolidation of all the rail-
road properties in which the Boston aud
Maine people have an interest. This is
predicted not because such a cousolida-
tlon strikes any one as being in line with
the normal railroad development of New
England, but because no other outcome
seems possible IL the financial interests
OF the parties back of the present deals.
are to be considered.
Terms have begun to be mentioned al
basis for consolidation of all tha
properties now controlled directly ar in
directly by the Boston aud Maine. It
seems to be pretty generally believed
that IL the Boston aud Maine absorbs Che
the Connecticut River road it will do 20
by issuing its preferred stock, giving two
shares OF this for one share of Connecti-
cut River stock. The Connecticut River
stockholders would in this get IL per
cent in place of the per cent they have
been getting. Two shares of Boston and
Maine preferred are worth about $3.50.
but the control OF the Connecticut River
was bought for 1910. Where will the $50
per share difference come fromf
New York and New England, it is ru-
mored, Will be consolidated with the
Boston and Maine Oh the basis OF three
shares of Maine common for one shsro az
New England. in which case q big al
vance in New York and New England or
a big drop IN boston and Maine may BE-
looked Tor IN order to make the trade ap-
pear equitable. The consolidation will
II is intimated, also include the Bostor
and Lowell, which will be taken in OF
the basis OF four shares OF Maine pro
ferred for three shares OF Lowell
The above outline Is thought to be q
rough draft OF the plan which the par
ties working the Boston and Maine deals
have in mind. A thing worthy of note.
in connec lion with the part which the
Reading plays in this matter, IL that the
latter as a corporation has mas no inter
est at all in the New England railroad
properties. The hold which 1t has on
properties cast OF the Hudson, IL it has
any at all, 1t derives simply through its
individual stockholders. IG is, therefore.
psrtiuent to ask IL the ownership which
the latter have acquired in New Englan
has really been acquired with
an eye to promoting the interests OF the
heading railroad. In other words, is the
Reading anything more than aname with
which certain parties are attempting 10
conJure life into certain sluggish New
Eng and railroad stockss
Ihe point OF the whole matter seems To
be that certain parties are attempting to
10 on a very much larger scale. what
Messrs. Jones aud Sinclair attempted to
DO Tor several years when Boston and
Maine stock was offered as collateral for
loans to all the banks of New Eugland.
and even TO those of Canada aud New
York. The parties in the present deals
are almost identical with those of the old
Boston and Maine deals. Their former
efforts are generally regarded as q fail
ure. How far, therefore, is it reasonable
10 suppose tlat they will succeed in
larger schemes without the aid of a large
amount OF new private money? Not
until This question is answered will it be
possible to put any confidence In the ulti-
mate success of the present New England
railroad deals.