The Providence news. (Providence [R.I.]) 1891-1906, 1893-02-06
RAILROAD WAR.
WHIT 1T COST THE NEW H1VEN TO
FIGHT THE NEW ENGLAND.


Boston, Feb. 6-The key to the pres
ent New England railroad situation
seems TO be the second mortgage New
York and New England bonds owned by
the New Have road. These bonds must
have proved an excellent investment to
the New Haven road, simply AS an in
vestment They have paid their interest
regularly, and the alternative OF the in
terest not being paid has been the own
ership of the New England road at the
New Haven's own terms.
Yet, apparently no more costly posses
sion ever came into tht hands of a rail-
road company than these same second
mortgage bonds. Time and again the
New Haven road might apparently have
bought the New England road for the
dividends on the preferred stock and 80
or less for the common stock. They
would thus have obtained the shortest
aud best line be ween Boston and New
York, with an ability to run trains be-
tween the two cities on time with which
no competitor could compete. No one
would think Of going TO Springfield on an
express train for New York with the
New England part OF the New Haven
road, nor would the Shore Line be able
TO mold its own much better. New Eng
laDd common stock at 80 would have cost
the New Haven road only some $4,000,
600.
Haven road? June 80, 1890, the total
stock of the company was SIS, 100000, aud
the total debt was 5000 0O0 all funded.
Today the New York Stock Exchange
sheet gives the total stock as $50. S52, 800
with new debentures issued TO the extent
OF Sl5OOO,000, convertible iuto stock on
April /, 1908, and for sixty days there
after. And what has the New Haven
road gainedf IL has simply put itself in
a position where IL must buy the Old
Colony railroad 10 get into Boston, and
at the present price Old Colony stock
will cost some S2G,OO0,000
Nor is this al. he $50, $50, 800 New
Haven stock is really worth at the pres
ent market over S75 5000, 900 The 81, co.,
COO, therefore. given Tor New York, Prov
dence and Boston stock was really
$lz, 100000, and the 500 600 given for the
Housatonic and Dalbury and NOrwalk
roads was really S2,000000. Aud If IL is
said that the roads thus acquired were
worth nearly, If not all. that was paia for
them, we may well ask ln reply what the
New Haven has accomplished by these
purchases 1t LOOKS now as If they IL
get To Boston only by buying the Old
Colony. La that case they viii obtain
very inadt q Iate terminals here, and will
not have tne direct obvious route which
would have been theirs by getting pos -es-
sion of the New England road for a COM
par itively trifiing outlay.
4hOItONtT, INC NEW Eu2lhuu 1Oau mas
possibilities for most magnificent termi-
nails n the South Boston fiats. IA, d the
New Haven road, by antagonlZing it, has
created "a formidable enemy, which al
ready threatens a war of rates on tie
Sound, and is backed by the somewhat
indefinite power OF the leading combina-
tion.
1t would appear that the possession OF
the New England second mortgage bonds
and the accompanying desire 10 obtain
control or the road without paying any
thing for the stock has already increased
the New Haven roads capitaliz itIon TO a
market value o. $15, 000, 900, win a pros
pect that this Will be increased TO over
500, 600 by acquiring the Old Colony
road. and TO over l81, 1,0U0,0 600 by the con-
version in 1908 OF the present de centuries;
that the New Haven roa1' does not thus
obtain direct route 10 Boston nor ade.
quate terminals here; and that it has
turned against it formidable rival in
the Reading Boston aud Maine group of
railroads, which has already checked its
advance northward by the Connecticut
river flank movement.