New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-04-07
SUSOUEHANNA'S TUNNEL.
REORGANIZATION OF THE RAILROAD.
. CONSOLIDATION PROPOSED THAT WILL OPEN
NEW COAL LINE

-. CONSOLIDATION PROPOSED THAT WILL OPEN
NEW COAL LINE.
The York. susquehanna and Western Railroad
h.s nj last thrown of the veil OF secrecy which has
,-oupded the scheme OF the tunnel under the FALL
49, onposite Ono. hndredth-st and takes the tun-
mel openly under its wing meeting OF the directors
NJ the SusQuehanna road was hcld yesterday AT
rb,cb a proposition was approved for consolidation
nth the Hudson River Railroad and Terminal Com
,any tho latter corporation being the company
which has been pursuing its mysterious excavations
=, the Palisades The plan OF union is yet to be
onnroy.d by the stockholders OF the SusQuchanna,
INT contracts were passed yesterday which give that
road the extensive terminals on the Hudson River
,hst IL has long desired The control Of the two
companies is lodged completely In the directors
Of the two corporations that the scheme Of consoda
ton may be said be assured The completion OF
the transaction will give the SusQuehanna road a
separate and important terminal which will render
II Independent OF its present connection with the
PENNSYLVANIA tracks into Jersey CITY,
There is little doubt. however that the Pennsyl-
vania Railroad will lose nothing by the new deal.
The relations between the Pennsylvania and the
susouchanna road understood to be close and
there is new road building between Gravel Place,
Penn, the western terminus Of the New York. Sus-
ouehanna and Western, and Scranton, Penn. In The
Joint interest OF the two companies with this link
completed and with the Susquehanna In possession
Of the terminal property OF the Hudson River Com
pany at Edgewater n. j., the road will be In a
position TO develop an independent and profitable
lire OF communication coal traffic The Susque-
hanna road pays onerOus tolls to the Delaware,
Lackawanna and Western In order reach the coal
rons Of Pennsylvania and Its acquisition OF the new
terminals will give II power that II never possessed
heretofore In the system Of coal roads.
The proposition OF consolidation between the New
York. Susquehanna and Western and the Hudson
River Railroad and Terminal Company contemplates
the creation OF new corporation with a capital
stock ~ 700, divided equally into preferred
and common stock The capital stock OF the Ter
minal Company .O00, OC0-s to be represented by
90 per cent in the preferred stock, making
~ 100000 OF the issue. The present preferred
stockholders OF the New-York. SusQuchanna and
Western will receive 1926 In cash every 100
shares and 100 shares in new preferred for every
100 shares Of old preferred stock This will require
100000 in cash and an Issue Of So 600 900 pre-
ferrcd stock After the exchange there will be left
s. 400 900 preferred stock To. he disposed OF
hereafter for development purposes. The $4,000
OoO present common stock Of the susquehanna Com
PAW will be exchanged share for share in the new
common stock. The preferred stock will b.
rid OF the cumulative dividend feature OF the old
stock. which has long been drag upon the develop
ment OF the Susquehanna property. The accumu-
lated dividends exceed 90 per cent the preferred
stock but their cancellation will place the company
In more advantsg eous position than IT ever
pied before.