The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-02-05
THE BIG CONSOLIDATION
THE LAKE SHORE ROAD MERGED
WITH THE NEW YORK CENTRAL.
PennsyIvania Tightening Its Grip on
Out of Hands of Receivers.

The Lake Shore Railroad yesterday be-
came the property of the New York Cen
trail G. Hudson River Railroad Company.
The final arrangements for the transfer of
the Lake Shore system to the control OF
the Central were made yesterday morning,
when the directors of the Central met in
New York to consider the proposition made
some time ago for merging the two roads
into one SYSTEM to be operated hereafter
as one road. stretching from New York to
Chicago Nearly all of the directors were
present, and those who could not be on
hand sent proxies favoring the purchase
by the Central of the Lake Shore road
Chauncey M. Depew. the president of the
Central, presided, and represented the Van
derbilt interests in both the Lake Shore and
the Central. Francis Lynde Stetson was
there as a representative of the Morgan in
terests. There was a full and free discus
sion Of the plan proposed to unite under
one management the two roads. and the re-
suit was that the directors voted without
dissent to take over the Lake Shore In
accordance with their plans, the Central
directors authorized an issue of 800, OO0. 900
of -hundred-year 3l5-per-cent. collateral
gold bonds. Each one-thousand-dolIar bond
is to be given in exchange for five shares
of Lake Shore stock
The operation which this announcement
brings on involves the $49,4665OO of Lake
Shore stock outstanding. The Vanderbilt
holdings constitute a considerable majority
of the outstanding stock, so that their as
sent to take bonds for their shares
essentially carried the operation with
it. At the conclusion of the
meeting President Depew gave out the fol-
lowing statement; 1.-The New York Cen
trail Hudson River Railroad di-
rectors met this morning and passed
the necessary resolution for the pur-
chase of the stock of the Lake Shore
Railroad Company. The Nanderbilts and
others represented by them have sold to the
New York Central their holdings of the cap
ital stock of the Lake Shore Railroad Com
pany, and in exchange for every five shares
of stock accepted one gold bond of the New
York Central for 81 600. bearing So annual
interest, payable in one hundred years. The
Messrs. Vanderbilt made this sale on the
express provision that the same terms shall
be offered to all holders of the stock of the
Lake Shore, and that such offer should re-
main open for acceptance by the Lake Shore
stockholders for the period of at least sixty
days. All shares OF the stock of the Lake
Shore Railroad 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 was OF opinion that
inasmuch as the close relations which have
existed between the Lake Shore and the
New York Central for over a quarter of a
century were dependent entirely on the per-
sonal holdings Of the stock of the two COM
panies, it was very desirable and necessary,
if possible to make certain a permanent
connection between these two lines" Mr.
Depew further said: "Under the authority
of the board the New York Central will pur-
chase, on similar terms to those accepted
by the Messrs. Vanderbilt and their friends,
any part of the stock of the Lake Shore
Railroad Company which may be offered
and an official notice to that effect viii be
published in few days.
Two vacancies in the board OF directors
of the New York Central Railroad Com
pany We're filled by the election of Geo. S
Bowdoin to succeed Erastus Corning, of Al
bany. and Ashbel Green TO succeed George
G. Buell. of Rochester deceased.