New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-03-16
10 STOCK FOR CENTRAL.
MO
AN INCREASE TO 100000, coo VOTED.
TO BE TXrENDED Fer BETTERMENTs- NORTH
ERN PURCHASE CONTRACT APPROVED.

provcmcnts, and they approved contract i"r Wv Pun
chase from J. PIerpon Morgan Of the control OF t''
J New York and Northern Railroad 1hc lat'r u"i's
action was generally expected. as announcer IN Inc
Tribune ten DAYS AGO. bu the increase in the cap'a
stock was a surprise 10 Wall street. The announce
ment was not received favOTaby ly the stock maih'
the price Of Ncw-Yo Central falling TO 100 l."
105 IS. against 101 "a on Tuesday hism' III"
meeting OF the directors not known or Gehcr"hl
expected in Wall street. and the first nnnonne heh'
made by the bulletins Of the Foreign and DonlcS''
News Company caused establishment rush lor
| information was made by brokers and Others to the
Office Of Drcxcl. Morgan & Co., and Mr. Morgan oo''-
! lrmed the statement.
The present capital stock Of the Ncwio"k Central
! is Sa042s 800 The resolution Of the board oi
directors provides that II shall be raised 10 Tl"''
OoO an Increase OF S1O,571,7OO The stockholders
will be called TO meet at Albany on April ~ lo' INC
purpose of ratying the action OF the drec'"rs o"'
the meeting is only matter Of form. Transfer DOCKS
OF the company will be closed on June ID. s'och-
holders of record OF that date will be enWd 10 sun
scribe between that day and July Tor the ne" s'''"
at par to the extent Of 10 per cent OF ther houneS
PAYMENT for subscriptions Is 70 be made as loiIo"s
rif,y nor cent on July l. 1893: % per cent on
January ,, 1894. and % per cent on july - io''
Interest bearing certificates to be issued Oh 'he
PAYMENT and stamped upon The next payment being
made TO he convertible into stock when IN" last
payment is completed
j. Perpont Morgan said yesterday ms money
obtained from the sale of this additional STOCK at par
10 the stockholders will be used for the extension oi
depots and tho building Of terminals In TINS cry' "a
mart OF the proceeds will also be expended III co"i
pleting the bIock-signal system between Ncw-iorh
and Buffalo and In meeting expenses TO be ihc"rreN
tbrouph the improvements contemplated on the
Iarlom River Additional real estate is 10 be boSh,
NJ Buffalo and provision is made TO purchase large
amount OF equipment and 10 continue construction
work. extensions and betterments AS may ue io""u
necessary from time 10 time by the board OF directors
for the proper and effective development OF 'c prop
erty."
The Ncw-York Central management has long hau
under consideration plans for cnlargnS the "f'hu
Central Station and thereby securing greatly needed
additions TO its terminal property. Extreme secrecy
has been thrown around these plans as the company
requires more real estate, and II hhowicuse oi It's
nurcoscs became genera. holders OF property womb
be inclined to stand ont for fancy prices II Is known
that some property in the neehborhood OF the "rAnh
Central Station has already been acquired, but the
officers of the company are still disnchhcd 10 s"'
what has already been accomplished. important III
provemens have been projected al various points
along the line Of the road in the way Of new stations
and terminal facilities Mt many points. ana ~ bhao
extensive Improvements have also been contemplated
for some time. The company has also gwen out
orders for a heavy addition TO the freight and pas
senger equipment in anticipation Of the calls OF thr
Worlds Fair traffic. The raising OF the tracks ana
approaches to the bridge over the Harlem River VIII
also demand q large expenditure OF money ny '''
company. Tho management was reluctant 10 increase
its fixed charges by an addition I" the b'hdod III
debtedncss and finally decided TO adopt tn" plan OF
the Pennsylvania OF providing lot improvements ~
securing fresh capital.
The details OF the transfer Of the control OF the
New York and Northern 10 the Ncw-York Central are
Withheld for the present. Both Mr. Morgan ana
President Dcpew refused TO make known the terms
Mr. Morgan however declared emphatcaly that no
part OF the proposed increase in Ccn'raiS cap'a'
stock 10 be used in the New lorh ana >or'hc'"
purchase. Mr.. Morgan said
Il purchased the control OF the Northern from
the New-York Loan md Improvement Company ana
IL has been sold TO the New York Central am not
worrying about getting my money. Tho New lorK'
New. Haven and Hartford will BE- protected by tho
placing Of the Northern road In the Grand Central
property, giving the New-Iiaven the same facilities
and privileges as If the Northern were part OF the
Harlem tracks The New-York and Northern will
have be reorganzed. but that will be matter
OF future arrangement"
When Mr.. Morgan bought the control OF the New
York and Northern road about tho middle Of last
January he secured ma orty OF the preferred ana
common stock and the second mortgage bonds. The I
total amount Of the second mortgage bonds is
So 200 900 OF the preferred stock 5000 900; and
Of common stock, s3OCO,oO0. The property was
offered TO the Manhattan Railway Company on the
basis OF 30 for the second mortgage bonds, 80 for
the preferred stock and - for the common stock.
On this valuation the property would have cost
So 900 made mp as follows:
Second bonds So 20Otoc al $50 900
Preferred STOCK, 5000 90 s5.......... 10000
Common stock, IS 900 90 Ij............ 100000
Total, SIP 200, 600 10000
Assuming that all these securities were not TO be
the estimate is made that Mr. Morgans
.p M n0t An
1t Is possible Ulat the New York Central may not
give cash for the Northern securities. but Instead
place its guarantee upon the second mortgage bonds
The Northern at present does not earn Interest, cx
cept upon It's first mortgage bonds. 4 proposition |
Of reorganization may possibly be made 10 stock |
and bond holders Of the Ncv'lork Central, and its
guarantee then be placed upon the securities Of the
reorganizcd company.
Caauncey NJ. Depew, speaking Of the reasons for
the increase OF the capital stock last evening. said
" We decided 10 raise In this way money 10 be OK
pended In Improvements in the next few years. IT
will not all be spent at We have bought over
~ 900 900 OF land In Buffalo and have arranged TO
increase very largely freight facilities there.
We have purchased land and TO build new
depot and enlarge facilities at syracuse. We |
have also to provide large amount of additional
equipment for Worlds Fair business and other needs
OF the operating department. Tie block system l. !
going to cost us sl,2JO,OOO. We have II completed
10 Albany and extending 1t over the road as |
ra pdly possible. 1t Is thought proper /, Issue
stock for this purpose. II Is "A new illne. and not
an operating expense. We hope that If there - |
anything Of good In the system the consequent de-
crease Of accidents and the consolidation OF force
where the men In the cabins can run tc whOi" ,iS
nal business will cause enough Of saving 70 pay the
interest the money required TO put In Tie ~ stem
We do not intend to spend all tie money at
once II will take four five years 10 complete
the objects for which III, money i raised. but We
do no, want to be putting out ~ 100000 year ana
raising money pIecemeal for the contemplated I'm
The directors thought II best to make
the capital stock even slOO.OJO,OOO instead oil
Issuing bonds for the money required for Improve
Incnts All the money thus raised Is TO 90 into Tie
road for construction I, benefit the properly, Though
only portion Of the money Is now appropriately
No definite plans have yet been made Tor New,
York terminal improvements. We have purchased
no land recently for that purpose, and ] am MOI
prepared to say what may be decided upon In nat
respect Tue bridging OF the Harlem River and the
deviation Of the tracks there have cost more than