New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-03-03
RTIMORS ABOUT FITCHBURG.
AN UNUSUAL INQUIRY AFTER THE SIOUX
OF THE ROAD.
WHY THE NETWORK CENTRAL WOULD LIKE TO
CONTROL THIS ROUTE TO THE EAsT-TiiE
INTEREST OF MASSACHUSETTS
IN THE ROAD.
my TELEGRAPH TO THE TRIDUNE.1

INTEREST OF MASSACHUSETTS,
IN THE ROAD.
10y TELEGRAPH THE TRIDCNEJ
Boston, March THE Boston News bnrea"
prints the following 1T is not imposslpie 'ha'
the public may shortly hear of still another ran
road deal. and that this time it will be the ITCH
burg that is the assimilated property Ihcre
certainly has been an unwonted inquiry after
Fitchburg stock Of late. and certain parties nave
been sounding the State authorities TO see II the
Commonwealth would be willing TO part WIN us
holding Of S5,OOO,000 in common stock OF 'he
railroad This stock came into the hands OF the
State in 1887, in part payment when the iioos'c
Tunnel was turned over TO the Fitchburs The
State also received 100000 in bonds running
fifty years and drawing 3 per cent interest for
five years 10 per cent for five, and per cent
for the remaining forty years. \ year ago Sloo.-
900 600 OF these bonds were sold TO the Scl'ool
Fund at 81, which was good bargain for that
fund. inasmuch as il got 81 100000 in bonds Tor
inarnuch as il got $l,OO0,006 in bonds Tor
Ss5O,O0O
THE Fitchburg bonds held by the Common
wealth have four more years TO run al -
Der cent and therefore. will not bring par n"iole
the time when they must be sold TO pay Oh the
Troy and Greenfield bonds in 1907. unless that
debt can he provided for in some other way
The State Treasurer says if the latter bonds were
due to-day he should favor short loan 10 cover
the emergency and hold on TO the FEchburg
bonds If these bonds were at par the Troy and
Greenfield sinking fund Would bc all right The
Fitchburc stock held by the State has never been
in the market and nobody wants il, presumably,
unless TO get control of the road. State Treasurer
Mardcn says there have of late been indefinite
offers TO purchase. but the State would probably
not part with portion of its holding whoever
took any would have to take all. 1t is doubt
full if the State would sell at all. but II might
be willing to exchange for preferred stock or
other security that would have a value"
Treasurer Gleason said TO journal" reporter
that lie had not heard Of any efforts ma lc IN the
direction of acquiring the road. The state has
$1,000 900 in common stock. which. il is reported.
some persons have tried 10 acquire. But there
is about 81, 900, 900 of preferred, Sl6,9400Oo
without the Monadnock acquisition The amount Is
100000, 900, or approximate, in common. There
fore there is vastly larger amount of stock than
the State OWNS, which would have to be acquired
TO give control. But another thing in connection
with this matter is that the common stock does
not until certain conditions have taken place,
carry the voting power The articles of consolida-
ton Of the Fitclburg with the Troy and Green
field and IIoosic Tunnel contain the following
The common stock shall have voting power until
It sha have received dividends for two consecutive
years amounting TO less than cent pr alnum
excepting that 1t shall have the tight to vote on an
equality with the preferred stock upon any question OF
issuing more preferred common stock and also upon
any question Of leasing iait of the consolidated iod or
Of hiring uniting with any other road
But there has been suggested the possibility ol
an exchange upon the basis Of one for five. anu
although it would seem that this would give the
party or parties who might acquire the state
holdings only a small fraction of controlling
interest," yet if they already held any considerable
amount of the preferred stock, such acquisition
would be desirable. That this has been done does
not seem probable. or, If so, III" deals nave o''li
made with much secrecy. The Ncw-lork Central
people would be the ones who would be benefited
by direct control of the road.
The question of competition here may come
up. 1t may be asked if the Fitchbure. by extend
ing into Vermont TAT Bellows Falls by leasing the
Cheshire, TO connect with the Central Vermont
did not thereby create competing line with
the Boston and Maine, which also runs across
Northern Vermont and connects with the Grand
Trunk and the Canadian Pacific. as does the
Central Vermont. With two routes to compete
In giving the Canadian Pacific low rates. that
road might be pleased and the Boston and Maine
displeased. In this it wOnld be- natural if
parties interested in the Boston and Maine should
want 10 control the Fitchburg or the Central
Vermont, or both.
1t might be interesting to call attention TO the
amount Of profitable through freighting which
comes TO the East the Canadian roads ny
way Of the Sault Ste Marie Canal II is 0cca-
sionaly stated that this is greatly III excess Of
the traffic by the Sucz Canal. IL is worth re-
membering that the former canal is closed dur
ing the frozen season, while the Suez Canal is
always open. But the most remarkable thing
about it is that there Is little known by the pub
lie about the antagoDisn OF the New-iork Cen
trail and similarly situated railroads to the
Canadian routes. and few people here in Boston
know that there is a tremendous quantity of
freighting done between Montreal and places
functions in the vicinity and New-lOrk The
freight consists of lumber, -four. etc, from the
region west Of the Ste Marie Canal. This is
reason why the allrail lines should object to the
competition Of the Canadian lines. There is like
wise competition between the rail-and-water
lines and the Canadian lines II may not be
generally known that this freight is quite
source of income to the Competent River Road.
the New-I London. Northern, etc, and makes rail
reading from the ocean to Canada across New
England profitable.