Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1893-03-13
A GREAT STOCK BATTLE
Being fought Tor the Control Of the New
England Statement by McLeod's Friends.

| boSToN; NlurtI IL III view OF tflt pup
lished state ment 1t midnight that receiver.
ship might frustrate the plan of the Me
Leod interests to obtain control of the New
York & New England Railroad at the an
nual meeting Tuesday; that both sides
were said to be prepared for the receiver.
ship, and the additional assertion that the
Reading interests had proxies to control the
election, hut not cash to hold stock under
the fire of receivership. the follow ing state.
ment of the condition of the New England
road and the outlook for it under the Read
ing control is made by parties friendly to
that management. A gigantic effort is still
being made to depress the New England
stock in order that the control may pass
| from the hands of the Readings friends
but the effort will he unsuccessful.
The net floating debt on December 81
1892, was only S379,35i, az against S4Ss,
1898 on December 81, 1891. The Parsons
management, which succeeded that of Cor
| bin in the first quarter of 1892. was ham
pered in financial management by the pur
chase last autumn of a majority of stock b,
the Mcleod interest. The reduction in the
amount of the floating debt, although small
was therefore very encouraging. The gros,
floating debt includes S400,9I0 interest nc
crued to December 81, 1899. Against the
interest is held s2s2 $50 cash, S6G2 80,
due from agents and conductors, and Ss2s,
503 due from companies and individuals.
These facts show receivership is impossi-
BILE. Money for interest is in hand and
notes payable of Sii2 ,S53 are not nearly
due. The alliance with Reading will be-
most advantageous to the New England
In fact its net earnings increased s170,0Of
in the last quarter of 1892, and the gross
earnings for January, 1898, increased SO,
900. The New England road consists o
500 miles owned, lG6 miles leased, and !
miles run under traffic arrangements. The
purchase of the New York &
Northern Railroad by the New
Haven interests prevented the New
England from obtaining an all-rail en-.
trance into New York City on the east sid,
of the Hudson river, but the Sound line
from New London to New York is in oper-
alton, and will so continue. The failure o.
the Reading interests to acquire the New
York 4 Northern, even if such deal had
been seriously thought of, may not be oi
particular moment, as the New York ter
minals would have been far away from tn,
business centre and the cost was excessive.
Freight via the New England, and destined
to New York City which connot be shipped
by the Sound line. can go by rail on tn
western bank of the Hudson river.
The Philadelphia 4 Reading leases th'
Philadelphia, Reading & New Englant
road. which is reorganization and consol
idation of the Poughkeepsie bridge an,
connecting lines. II furnishes the shortes,
line between Pennsylvania coal fields and tn
New England states, and the importance O
the matter to both the Reading and New Yorl
& New England roads is that the latter run
to 11opewefl. where a connection is mad
with the Poughkeepsie Bridge system. Tn,
freight of the New England could b
moved from Hopewell to the bridge, oni,
f2 miles Borthwesteriy, across the Hudson
and make connection with three lines OF
the west bank of the Hudson
thus reaching the New York destination.
If New Haven plans coubl be fully car
ried out, the New England states woul,
have no railroad competition. and the law
of the several states are snch that no com
peting mileage could ever be built Tber,
is no doubt that the net earnings of tin
roads embraced in the Mcleod combination
will be materially increased when the plan
shall be under way.
1
have to be paid on the j2s miles Of the Ne,
York & New England is s22 ,075,550. tn,
fixed interest capitalization on IA miles o
the Poughksepsie Bridge system is 81 1913,
600. bringing the total Of go miles up b
/ s23 ,s9a, $50. or only s4l 600 a mile.
i The statement Of operations Of the Nes
York & New England road for nine years
demonstrates that the increase in gross re
ceipts has been great and that the net earn
ing have kept pace with the increases
charges. The dividends paid to date aggre
gate s972.I68. The surplus earnings owe
fixed charges for the past eight years aggre
gate 81 .0gi ,03e, or Sss .93s more than III
dividends paid.
The New England would seem to he abb
to earn fixed charges in almost the poofes
kind of year and the effect Of the Goa
freight and passenger business over tn
Reading's Poughkeepsie Bridge system j
} yet to be tested. Mr. McLeods associate
! are confident that his control of the New Eng
land will be Of the greatest benefit to share
holcers Of that company AZ well a. to th
Reading company