New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-02-06
ViO-ViOlet
Lundborg's-
has the delicate
and natural fragrance
of Spring Violcts
THEIR MERGER TO FOLLOW.
AMALGAMATION OF THE MICHIGAN
CENTRAL AND WEST SHORE.

THE FORMER. WITH IT'S LEASED LINE. THE
CANADA SOUTHERN. TO PASS UNDER THE
DOMINATION OF TIE NETWORK
CENTRAI-J. PIERTONT MORGAN
HEARTILY IN FAVOR OF
THE VANDERBILT CON
soiIDAT1ON PLAN
The understanding in Wall Street yesterday was
that the plan for the union OF the Lake Shore and
Michigan Southern Railway with the New-Iork
Central and Hudson River Railroad would soon be
followed by the amalgamation Of the Michigan
Central Railroad and It's leased line. the Canada
southern Railroad with the West Shore Railroad
a. all Of the stock OF the West Shore is owned by
The New York Central. the Michigan Central ana
me Canada Southern will pass under the DONNA
lion Of the New-York Central the same as the
lake shore AS has been stated. per cent COL
lateral trust bonds will probably be issued by the
West shore in exchange for Michigan Central
stock Michigan Central stock on the New-forK
Stock Exchange Yesterday reached lSi. and coSeo
al l!2ls a gain Of per cent from Friday. New
York Central stock after selling at 1875. closed at
IlS,. loss Of = Lake Shore stock, after seiiihB
&, 1874. closed at 20 loss OF g.
1t is pointed out that the Michigan Central mas
noie dividends for twenty-five years. except in two
years II paid high as 6i9 per cent In lssl ana
1894 The last three years II has paid per cent
but the Vanderbilt policy Of charging Improvements
70 operating expenses prevented as good showing
for the stock as might have been made. Under the
rounding plan about $4,000 will be saved annually
or ius, 2 r,er cent on the stock The late w H.
Vnn ierbilt had large majority Of this STOCK, ana II
is st!n held by the Vanderbilt family. The ar
ra9gement Of the Michigan Central with the can
ada southern whereby one-third OF the net earn
inss after charges go 10 the Canada southern pro-
vides that each company Is 10 get the oenent OF re-
duced charges with the refund!ng completed. the
Canada Southern would be entitled 70 CONSIDER
ably larger proportion OF the surplus earnings Inc
Canada Southern has N4cnsC in bonds which
mature ten years from now. and the rest OF them
& 5000 mature In fifteen years. Both issues bear
PER cent
RIGHTS OF STOCKHOLDERS
The fact that the New-York Central is 10 become
m. owner Of the larger portion of the Lake Shore
stock does not give the Ncw-YOrk Central rights
over those Of any other stOckhoder. AS long as
there Is one Lake Shore stockhoder outside the ar
rangement he will have rights which the courts VIII
recognize. This fact has important bearing
upon the method by which the New-York Central
will secure the benefit Of IT'S purchase. The New
York Central cannot take the earnings OF Lake
Shore for the purpose Of paving New iork CenIIal
debts except through the indirect method OF CON
trolling the division OF revenues or me UiioO
method Of dividends on the stock II goes wi'lou i
say!ug chat q Ntw-YOrk Central ~ per cent oond
at par is more manageable security thah Lake
Shore $40. at 30 O., -
puts The New-York Central in the position WHICH 1IS
It's competitors have found II wise TO ADOPT me
he ;fr5uch lines from New-York to Chicago;
m G9nsGds nc. o. the sgnaSIp ~ tbe General
trunk line s'- ton IN the maintenance OF rates
A rumor that j. PieTpont Morgan was not in
sympathy WIN the arrangement Is met by direct
deed. ii is said his Consent enabled the New-York
Central directors act promptly in authorizing me
s SOCK u '''''' ''' '"' ''' 0'''''' " ~
has Era SSen sssiSS dSF d tSi
Western Iioroad with the Erie Railroad 1t IS
ferred stock viii be exchanged FOR 30 to g IN
Erie nIs a-efeTred and s and ", Wes
E.e comno9 stock II Il said th e Erie ped az ~
susquehanna and Western stock About eighty
thousand snares OF the Susquehanna and West
Of the common stock are still outstanding.
THE BALTIMORE AND OHIO PLAN.
The talk in financial circles IL that the plan for
the reorganization Of the Baltimore and Ohio Rail
road contemplates scaling the bonds TO per cent.
with proper adjustment OF prior liens. etc, while
some Of the junior issues and issues roads
net m nreseDt tnfcniio5 g. 70 assess the s@
0ro0p % Pa-tmore and Ohio stock so share, for
new preferred stock is said to nave already been
underwrt,en by syndicate at 30 The figures
ere favorable to decided advance in the pre-
the nxed charged Of the new company and the pay
rnent II receivers certificates and other floating
debt the money TO retire them being secured from
the assessment on the junior bonds and the stock
The assessment % 80 share is reduced by the
issue Of preferred stock II 81 share A better
price than 5, FOR the new preferred stock would
still further reduce The assessment
II has for some time been expected that the Great
Northern Railway would call In rs collateral trust
per cent bonds and offer 10 preferred stockhold.
ers at low price the amount OF new stock neces
these bonds. Interest on the
latera. trust Tours IS payable quarterly and notice
can be siren Of their retirement at three mouths
date scy Of the quarterly interest ynent days
These days are March l. June !. September / and
December