The evening herald. [volume] (Shenandoah, Pa.) 1891-1966, 1893-02-08
OLD COLONY TAKEN IN
New York, New Haven & Hart
ford Secures Control.
TERMS OF THE CONSOLIDATION.

President Choute Finally Admits that
Union of tho Two Roads Is Practically
settIed-Identity of H.. old colony Not
TO be Dcstroyed-stockholde Consent
Yet to be OBtaincd.
BosToN, Feb 5.-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 &
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 maJter?'
mo- it is not true, have not issued,
nor am l going to issue any such cir
cular."
"rhen there is no truth in the state.
ment Whatever"
"Well, l will not deny that nogotia-
Jions 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.
MIR. Barron, of the Boston News
Bureau, when told that President Choate,
of the Old Colony, had deniei that there
had been 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
ahares of stock, as first stated, which vlr'
tually carried with it the transfer OF the
Old Colony to New York, New Haven g
Hartford control.
"The whole matter,n said Mr.. Barron,
twas consunmated within a couple of
hours, ana two hours before it happened
nobody knew such "a deal was to take
place"
This morning President Choate made
another statement and authorized the
following:
Negotiations have progressed so far
between directors OF the Old Colony and
Of the New Haven roads that union Of
these two properties may be regarded as
practically settled. While this will re-
suit in better train service and single
administration between New York and
Boston, something the public has bsen
constantly seeking, the arrangement wi II
not destroy the identity of the Old Colony
system.
"This will continue to be managed, as
heretofore. from Boston, and j. r. Ken
driCk will be in immediate charge and
become one of the vice presidents Of the
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 share of Old Colony stock Will be
worth about $2i5. If agreed to by the
directors the contracts must be sub
mitted to the stockholders for their ap-
prevail"
The terms of consolidation to which
President Choate allules were agreed
upon last week. On Monday the directors
of the Old Colony acoed upon the agree
ment, and on Saturday next it comes uE
before the New Haven board Of directors
for approval.
Then the stockholders of both roads
/ will have to rabty it.
It is known chat the terms Of consoli-
dation are as follows:
+ Nine shares of New Haven stock at 10
per cent. dividend security are to be eX-
changed for 10 shares of Old Colony
/ stock, which up to the present, has been
a z per cent. security. The union is to
count from Jan. l, 1893, but the New
Haven road actually takes possession on
July l.
Meanwhile it is hoped to obtain legisla-
tive sanction for the exchange OF New
Haven stock for that of the Old Colony.
No legislation is required to lease the Old
Colony, but the exchange of stock re-
quires the consent of the Legislature.
Until the exchange is perfected the
/ Old Colony stockholders are to secure
| nine-teuths Of whatever dividends are
/ passed by the New Haven stockholders-
/ that is, if the New Haven pays 10 per
cent. the current year the Old Colony
stockholders are to receive per cent, an
increase of 2 per cent. upon their present
rate.