New-York tribune., 1898-01-28

THE FORMER ROAD TO ISSUE BONDS TO BE EN-
CHANGED FOR THE STOCK OF THE LAT
TER-EEYEcr OF THE ANNOUNCE
MENT IN WALL. STREET.
Under the plan for the union Of the Lake
Shore and Michigan southern Railroad with th'
Xev.Yorl Central and Hudson River Railroad.
,be New-York Central Will create an issue OF
sIooO0OOoO 3ls per cen, debenture bonds ard
5000 Of these bonds will be exchanged for each
500 O. Lake Shore stock BY this arrange
mont Lake Shore stockholders will receive an
income OF : per cent on the par value Of their
,resent holdings. 1t is calculated that the new
dehenture bonds will sell at about 21o. The
lake shore will show earnings in excess Of the
amount required for the interest on the dehent-
ure bonds The surplus will belong to the New
York Central as VIII also the securities in the
,-easurv Of the Lake Shore company. These
securities include a controlling interest in the
stock ~ the New-York, Chicago and ST. Louis
pourood or as II is commonly called. the
"Nckel Plate
II was reported that the West Shore Railroad
would issue per cent debenture bonds to eX-
change for the stocks OF the Michigan Central
and Canada Southern railroads. which consti-
tute another line from Buffalo to Chicago. All
q, the stock Of the West Shore company is now
owned by the NewYork Central
fthe scheme here outlined is TO be carried
ont the so-called Vanderbilt lines between New
York and Buffalo the New-York Central and
West Shore. and the three Vanderbilt lines be
tween Buffalo and Chicago. the Lake Shore
Nickel Plate and Michigan Central and Canada
Southern. Will all be under control Of the New
York Central and all under one management.
Ninety per cent Of the Michigan Central stock
,s owned by the Vanderbiits. Control or the
Canada Southern Is held by the Michigan Cen
tral
Tbers was sustained strength In. and healthy
sunnort Of Lake Shore and NeW-fOrk Centrai
s,ocks Yesterday New-York Central climbed
I'D 10 1893. and closed at 119A. net gain OF
~ over Wednesdays closing Lake Shore went
IN 10 1851. and eased off to 1SI. net gain OF
one pont over Wednesdays closing. There is
no longer the slightest doubt that raHlcai
changes are projected in the two lines, ana the
nlan Of consolidation as outlined IN Ihe IT'D
une Yesterday morning is known TO be pracN-
callv what has been decided upon.
william h Vanderbilt. accompanied by
Chauncev NJ Depew. went down 10 Wall street
a little after noon. and houses that are generally
looked upon as purchasing agencies FOR ire
vapderbnts we're heavy buyers. No official
confirmation Of the report Of consolidation could
be secured from the officials Of either the New
York Central or of the Lake Shore but. on the
other hand no denial forthcoming. They
were non-cormittal This in Itself Is looked
upon as significant
Nearly all the railroad presidents Of the great
Vanderbilt system now in the city, ana
number Of conferences have been held at the
Grand Central Station with Mr.. Vanderbilt II
,s generally understood that a policy having
been mapped out and determined upon. no
further steps will be taken until official sane
tion can be given the plan. This will be with
hold naturally until Cornelius Vanderbilt can
be consulted