The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1898-02-05
UNDER ONE MANAGEMENT
The New York Central Absorbs
the Lake Shore Railroad.
ALL INTERESTS SATISFIED
An Issue of $1ooooo.ooo 1oo-Year
Gold Bonds Bearing 1-2 Per Cent
Interest -Chauncey Presides
and Sees 1t Go Through.

New York. Feb. 4-The Lake Shore
| to-day became the property of the New
| York Central & Hudson River Railroa d
| company. The final ARRANGEMENTS for
the transfer of the Lake Shore system
To the control of the Central were made
THIS morning when the directors of the
Central met here to consider the prom
oSition made some time ago for a union
or the two roads into one system 10 be
operated hereafter as one road stretch
ing from New York to Chicago. Nearly
all of the directors We're present and
those who could not be on hand sent
proxies favoring the purchase by the
Central for the Lake Shore road.
Chauncey M. Depew, the president of
the Central, presided and represented
the Vanderbilt interests in both the
Lake Shore and the Central Francis
Iindeston was there as a representa-
tive of the Morgan interests. There
was a full and free discussion of the
plans proposed 10 unite under one
management the two roads. and the
result was that the directors voted
without dissent for the taking over of
the Lake Shore
In accordapce with their plans. tho
Central directors authorized an issue of
S100 900, 900 of 1o0-year 81 per cent col
lateral gold bonds. Each 81 900 bond is
to he given in exchange for five shares
of Lake Shore stock. The operation
wE..--- this announcement bring on in
wolves Ine $49. $500 of Lake Shore
stock outstanding. The Vanderbilt
holdings constitute a considerable ma
1ority of the outstanding stock SO that
their assent to take bonds for their
shares essentially carried the operation
with it.
Al tho oopcIuSian of ,ho ,,aati,,.. H.,
day President Depew gave out the fol-
lowing statement: THE New York Cen
tral d Hudson River railroad directors
met this morning and passed the neces-
sary resolution for the purchase of the
stock of the Lake Shore company The
Nanderbilts and others represented by
them have sold to the New York Cen
trail their holdings of the capital stock
of the Lake Shore railroad. and in ex-
change for every five shares of such
stock accepted one gold bond Of the
New York Central for 81 900. bearing 81
per cent. annual interest and payable in
100 years. The Messrs. Vanderbilt made
this sale upon the express provisions
that the same terms should be offered to
all holders of the stock of the Lake
Shore stockholders for the period of at
least so days. All shares of the stock
of the Lake Shore railroad acquired ana
owned by the New York Central are
10 be held in trust as collateral for such
gold bonds. The New York Central
board was Of the opinion that inasmuch
as the close relations which have ex-
isted between the Lake Shore and the
New York Central for more than "A
quarter of a century were dependent en-
Iirely on the personal holdings of the
stock of the two companies, ii was very
desirable and necessary, if possible, 10 |
make such an arrangement
THE New York Central, on the au-
thority of the board. will purchase on
similar terms to those accepted by the |
Messrs. Vanderbilt and their friends |
any part of the stock of the Lake Shore |
which may be offered, and an |
1fficial notice to that effect will be pub
ished in a few days"