Waterbury evening Democrat., 1893-02-08
OLD COLONY TAKEN IN
New York, New Haven & Hart
ford Secures Control.
TERMS OF THE CONSOLIDATION.

President Choate Finally Admits that n
Union of rhe Two Roads is Practically
settled-Identity of the Old Colony Not
to be Destroyed-Stockhold Consent
Yet to be Obtained.
BOSTON, Feb. S.-President Choate of
the Old Colony was asked last night if
the Old Colony railroad company had sold
out to the New York, New Haven s.
Hartford.
No." said Mr.. Choate. "There is no
truth in the statement"
'Is it true that you are going to issue
a circular to the stockholders of your
road in connection with the matter?"
mo, it is not true. l have not issued,
nor am l going to issue any such cir
cular."
"Then there is no truth in the state
ment Whatever"
well, l will not deny that negotia-
lions are going on, but nothing has co me
of them so far and no agreement has
been reached. Further than that l de-
cline to speak upon the matter"
Mr.. Barron, of the Boston News
Bureau, when told that President Choate,
of the Old Colony, had denied that there
had been II sale of that corporation to the
New York, New Haven 81 Hartford, re-
affirmed the original statement, declar-
ing that there had been tie exchange of
shares of stock, as first stated, which vir
tually carried with it the transfer of the
Old Colony to New York, New Haven &
Hartford control.
1.-The whole matter" said Mr.. Barron,
twas consunmated within a couple of
hours, and two hours before it happened
nobody knew such deal was to take
place"
This morning President Choate made
another statement and authorized the
following:
Negotiations have progressed SO fal
between directors OF the Old Colony an(
of the New Haven roads that Il union OF
these two properties may be regarded a.
practically settled. While this will re
suit in better train service and single
administration between New York and
Boston, something the public has beer
| constantly seeking, the arrangement wi Il
not destroy the identity OF the Old Colony
| system
This will continue to be mana ged, as
| heretofore. from Boston, and j. r. Ken
| drick will be in immediate charge ant
| become one of the vice-presidents of thu
| New Haven road The terms of the
union cannot be given, as they have not
been agreed to by the respective Boards
| of Directors. In general it is understood
| that q share of Old Colony stock will b,
worth about $215. If agreed to by thu
directors the contracts must be sub
| mitted to the stockholders for their ap
| prevail"
| The terms of consolidation to which
| President Choate alludes were agree
| upon last week On Monday the director
OF, the Old Colony acted upon the agree
| ment, and on Saturday next it comes IL
| before the New Haven board of director
for approval.
Then the stockholders of both road
will have to ratify it.
1t is known that the terms of consoli
| dation are as follows:
Nine shares of New Haven stock at Il
per cent. dividend security are to be e2
| changed for 10 shares of Old Colon
stock, which, up to the present, has beer
az per cent. security The union is t.
count from Jan. l, 1898, but the NeN
Haven road actually takes possession o
July /.
| Meanwhile it is hoped to obtain legisl0
tive sanction for the exchange of NeN
Haven stock for that of the Old Colony
No legislation is required to lease the Oh
| Colony, but the exchange of stock 1t
| uuires the consent of the Legislature.
| Until the exchange is perfected tn
Old Colony stockholders are to secur
| nine-tenths of whatever dividends ar
passed by the New Haven stockholders
that is, if the New Haven pays 10 pr
cent. the current year the Old Colon
stockholders are to receive 8 per cent, Il
increase Of , per cent. upon their preset