New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-02-05
THE UNION ANNOUNCED.
CONSOLIDATION OF CENTRAL AND LAKE
SHORE EFFECTED
. oo1.p BOND OF THE CENTRAL FOR sl."o. BEAR
CHANGE FOR FIVE SHARES or
LAKE SHORE STOCK


CHANGE FOR FIVE SHARES OF
LAKE SHORE STOCK.
oc,c;ol announcement was made yesterday OF
..a nlan for the union Of the Lake Shore and
,,,cr,ean Southern Railway with the New-Nork
co,tral and Hudson River Railroad. AT the
o,osa OF a meeting Of the directors Of the New
r.-S Central road at the Grand Central Station,
c.ouncey NJ Depew the president Of the road.
.ove out the following statement:
.rho New-Y0rk Central and Hudson River
,,.urosd directors met this morning and passed
.ho necessary resolution for the purchase or
,ho stock of the Lake Shore and Michigan
oo,thern Railway Company. The Nanderbilts
-, others represented by them have sold 10
~. New York Central their holdings OF the cap
40, stock of the Lake Shore and Michigan South
49,, Railway Company. and in exchange TOT
o-v Eve shares of such stock accepted one
,n bond Of the New-York Central for Slooo'
,or,ns 3i2 per cent annual interest and payaole
4, ore hundred years. The Messrs. NanderbAt
.noas this sale upon the express provision that
,,e same terms should be offered 10 all holders
., the sock OF the Lake Shore. and that such
oe.- should remain open for acceptance oy the
Lake Shore stockholders for the period or al
80. .,x,v davs. All shares Of the stock OF the
lake Shore Railway Company acquired and
o,vned by the New York Central are TO held in
,~pst As collateral for such gold bonds The
Nsw.York Central Board We're Of the opinion
that ,nasrnuch as the close relations which nave
ev,stAd between the Lake Shore and the New
Work. Central for over quarter OF century
yer. dependent entirely on the personal holdings
os the stock OF the two companies. II was very
desirable and necessary II possible to make GER
,o,r q permanent connection between the two
lines"
NJ Oenew said further: There is no doubt
,,e, this action is OF benefit TO both companies
o,d ~ tho stockholders Of both companies, and
slso TO the public and TO the city Of New-4ork
Under the authority Of the Board this morn
,,g the New-York Central will purchase on
similar terms to those accepted by the Messrs.
Vanderbilt and their friends any part of the
stock OF the Lake Shore Railway Company
which may be offered. and an official notce 10
that effect will be published in few days"
The Tribune exclusively on Thursday January
81 gave IN detail the scheme for the amasd'a-
ton Of the Lake Shore with the New-4 ork cen
,ral. Every statement which 1t then made IS
verified by President DepeW's utterdnoe.
The Vanderbilts own and control absolutely
fonr-Aftbs Of the Lake Shore stock, ana the sue
cess OF the scheme is therefore assured
Lake Shore stock yesterday sold on the stock
Exchange at 19ilE and closed at lSi AS the
stockholders are 10 receive two for one III
New-Yorl Central bonds. the new bonds ngufe
out 81 q. Lake Shore stockholders have peeh
receiving 6 per cent in dividends on their STOCK
BY taking bonds they will receive in interest 'ne
equivalent Of I per cent on their present hoiu-
ngs Accordingly they have strong incentive
to Join in the scheme. There Will nave 20 e, De d
York.
holders to authorize the new bonds, but notnlhs
beyond individual action in turning IN lhelI
stock will be required from the Lake Shofe
stockhol lers New-YOIk Central STOCK yester-
day sold at 11914 and closed at ll9' when was
a gain OF s. from the day before Inc closing
price Of 194 for Lake Shore STOCK mace us
The capital stock Of the Lake Shore is SID
46C 500 or. IN round numbers. S5UUoOUOV. me
Lake Shore altogether owns or coHIoIs DE 4S"S9
439 90 miles Of road, OF which otutJ TeprescI1 -,
tba main line from Buffalo 10 Chicago. Ihe
funded debt includes S43. 442OoV bonds or lhe
Lake Shore and Michigan Southern EanwGyi; ii,,
81 723 900 OF proprietary bonds. owned WhoHy
NV +be company. and SO 13S 600 Of leased bonds,
on which the interest is paid by the company on
account Of rental. The company Is now refund
tn New-York Central has in its system
26390S miles OF road. Of which 44l!o repre-
sent the main line from this city 70 Buhalo us
carital stock is 500 OUD0OO and the funded debt
IS S7O5OO000. This company, also, is refuhdIhs
its bonds. ~,
The scha,ne for merging the Lake shore with
the New York Central was devised by william
X Vanderbilt who has placed himself pracu-
ALLY a, the head Of the NeW-N ork central since
his brother Cornelius was taken ILL., II is re-
ported that :. r. Galloway, the president OF the
Lake Shore is 10 become chief operating OIL
Ger Of the consolidated roads.
+ V. ". Rossiter. treasurer OF the New orK
Central has gone 10 Egypt TO consult with Cor
nelfus Vanderbilt regarding the practical an
sorTltion Of the Michigan Central and Canade
Southern railroads boy the West Shore Railroad
The entire capital stock of the West Shore IS
owned bv the New-York Central so that TINS
Arrangement would put the Michigan Cenlral
and Canada Southern under New-York Central
domination The same as the Lake Shore. II IS
said that the West Shore will issue per cent
collateral trust bonds 10 take UP Michigan Cen
tral stock which amounts 10 only SINtoSVN
The Michigan Central already controls the can
ada Southern. which forms part or us llne De
tween Buffalo and Chicago. The tCJaI mileage
Of the Michigan Central system is .o}i miles OF
which i9 miles represents the main line. Inc
Nanderbilts own something like W per cent oI
the Michigan Central stock consequently ms
road may be as easily absorbed by the west
Shore as the Lake Shore VIII he by ne New
York Central. Il is expected that the Michigan
Central and Canada Southern deal Will he an
nOunCed within II month or so. Micmgah Cen
tral stock Yesterday sold at lll@4. ana c4osed
at ll1ls gain ~ 32 from Thursday
George s BowdOin, Of J. j. Morgan 20,
and eX-Judge Ashbel Green were yesterday
elected directors OF the New-York Central Ra!l-
road IN place of the late Erastus Corning OF
Albany. and the late George c. Buell. OF Eoches-
ter.