The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1898-02-05
UNION Is CONSUMMATED.
Lake Shore and N. z. Central Become
One Road.

New York Feb. 5.-The Lake Shore
has become the property of the New
York Central and Hudson River Rail-
way company.
The final arrangements for the trans
fer of the Lake Shore system to the
control of the Central were made when
the directors of the Central met here
to consider the proposition made some
time ago for a union of the two roads
into one system. to be operated hereaf-
ter as one road, stretching from New
York TO Chicago.
Nearly all of the directors were pres
ents and those who could not be on
hand sent proxies favor5ng the purchase
by the Central OF the Lake Shore road
Chauncey NJ. DepeW, the president of
the Central, presided. and represented
the Vanderbilt interests in both the
Lake Shore and the Central Francis
Lynde Stetson was there as a represen-
tatIve of the Morgan interests. There
was a full and free discussion of the
plan proposed to unite under one man
agement the two roads, and the result
was that the directors voted without
dissent to take over the Lake Shore.
In accordance with their plans the Cen
tral directors authorized an issue of
800, ZOO, 600 of 100-year 312 per cent col
lateral bonds. Each $1,000 bond is to
be given in exchange for five SHARES Of
Lake Shore stock
The operation which this announce
ment brings on involves the S49, 400 500
of Lake Shore stock outstanding. The
Vanderbilt holdings constitute a con-
siderable majority of the outstanding
stock, so that their assent to take bonds
for their shares essentially carried the
operation with it.
At the conclusion of the meeting to-
day, President DepeW gave out the
following statement:
THE New York Central and Hudson
River railroad directors met this morn
ing and passed the necessary resolution
for the purchase of the stock of the
d 4 he
Vanderbilts and others, represented by
them, have sold the New York Central
their holdings of the capital stock of
the Lake Shore Railroad company, and
in exchange for every five shares OF
such stock. accepted one gold bond Of
the New York Central for 1.0o0 bearing
35z per cent annual interest and paya-
bic in 100 years.
sale upon the express provision that
the same terms should be offered to all
holders of stock of the Lake Shore and
that such offer should remain open for
acceptance by the Lake Shore stock
holders for a period of at least sixty
days.
.'AlI shares of the stock of the Lake
Shore Railroad company acquired and
owned by the New York Central are to
be held in trust as collateral for such
gold bonds. The New York Central
board were of the opinion that IN as
much as the close relations which have
existed between the Lake Shore and the
New York Central for over quarter
of a century. were dependent entirely
upon the personal holdings of the stock
of the two companies, it was very de-
sirable and necessary. if possible, to
make certain a permanent connection
between these two lines
Mr.. Depew further says:
grinder the authority of the board,
the New York Central will purchase on
similar terms to those accepted by the
Messrs. Vanderbilts and their friends,
anv part of the stock of the Lake Shore
company which may be offered, and an
oficial notice to that effect viii be pub
Hshed in a few days.