New-York tribune., 1898-01-29
ME VANDERBILT MOVE.
,rss OF THE GREAT coNsoL1DA-
TION.
moxs As TO THE EFFECT on NEw-SoRk
CENTRAL.

,..,ors we're made yesterday or
Pra''''' ..orrscv of the account. nrs' pri"''"
the emu 80 % the intended union vi 'ne
IN The and Michigan southern Nall'oau
Lake yorl, Central and HUDSON rNNe'
with ~" o,a of the merger later OF 'ne
Rai' md Canadian southern ram
gan We, shore AS the New horh
with - .ne stock OF the West Shoie' "i
owns q" owns control Of the Nlohei
LAKE ,eoo+,on scheme. as outhneu' ,-o,r-
'he o,ued Vanderbilt lines ,. As
the and Chicago under one mana nvo shore
York an" ,.,nod the stock Of the Lake 0,o'0
has been ~, IN with 3Ia per cent depe"'u
viii be ~ ,ssued by the New-forK C."',s' s
bonos " ,,s or the Michigan 'e" .
and the ",,tbern will be taken UP VII" uas,
CanaoN aar,ure bonds TO be issued -
cent deeen'"'e
Shore. , that speyer Co. OF o.
a CO. or perhaps oo'h' WI" ..,,,oh the
Nors"l ,cial part OF the opera,on n speyer
the n,,t lines are TO be ain''s'I' -, the Lake
VSno',S. ,,o charge Of the refunu'"t w. refund-
CO. ,'a %ooas and Morgan q 90 ss Va both Of
Shore .he New-York Central 80 ,rosress for
'ns :. transactions have pee"
some time aavs circular will pe .s7
orb dc
sy ss,o =, ~ New-York Central col" tor each 500
81" =" o.. per cent interest ,o g purely
beaf'"e lake Shore stock 80 majority
share OF Lam o,ready more than MAJ n
formal step ,,ors ~ the Lake Shore nave 49,
Of the stocN''0.. ogreed TO the terms anu
approacieu' a." t,o,bolders can only expect s ,
non-asseh''"7 No declared by the hoi'''',
DIVIDENDS ." lake shore. the pfese"' ' .,,,,
directors o. w ~ %ew-York Central tni CDo
ton IS 10 ,''',, Nothing in regard 10 "'.' e,,,,
line 10 On'O"9 Southern can De '''
Central % ,~esent because pracuca"! ".'
agreed 10 d. -, = held by Cornelius Nai"O
michigan Central Is "'
-, Who is in Egypt. ,,-,,,,,Oe of Thurs
bit VIM as told in The Tribune Oh I'm
THIS pan q nersonal undertaking oi m,
da!' - ,,serhilt. and he has been ,.Iyov
IAN IA - hts undertaking by H. o-
asss'V1 vuiam X Vanderbilt mas .,a-o.
Mum 49,. took Of the Lake shore al'''
!O'''' oo, do as he wishes with 'ie ''' -
iore' "e -, - rlan Of consolidation Is sun
:, or,v q urinary move. ana 'Ne ,n,.olv-
" ..r,endous scope and pTopo'" oil
,ne end a complete consohaa''o" .no
~ ''e 1orderhDt lines. under the coh''o, -
>-orr-york Central but delay Is Id 0'''.' ,,,,a
,ao,,as for in carrying cut TINS huee .,,o
rho friends Of Cornelius NaIloelo o+' - va
o,a TIME associates and brokers ol W. II
aorhit have apparently not Deeh
oo,rec,,or with this II is stated tha' '''0
,, park although always regarded aS
,,rorybold Of Vanderbilt interests mas S0'N '
Nau-york Central stock which II held'
ra,crla,ons on the result Of the cohsoliua
,,,n of the Lake Shore with the Ne" o''
Central were issued yesterday IN an S''
by DOW Jones & Co.. as follows .
Assuming that the Nv MIXTURE ferH bonds in ex
sbsSge or Lake Shore STOCK there appears 10 6 be
70 ,resfion about Lake Shore stock sellhB az ~.
Win The Lake Shore stock would 20 lse T., az e51
81 the c9mpanys WaSlry, s rs 900 second pre-
isrTeS eSr ana sn Ike Erie stock 1900 Mahoning
Fff'Il rnsf IRl9iIway preferred. and Ss59yVJ comin4n
stock $500 900 Terminal Railway oi hSii@t i @ t50 IN
Various bonds, and S3JoO0VO in cash ana o"SN
IN The las, egh; years the poorest in the history
of ibe @ nro9erfy, the New-York Central has garatq
an ayerase 40 Per cen. srirc Oh - soJ0oo Of }.z
per cent bonds are Issued ana .Ci @ T'Id fard H.
nar csnt on the stock and IS per cent ana -
~ con-, make % per cent. The Lake Shore IA
~ I9 sis per es' cent More than one-ha Of its bonds
have already been refunded al ~ LeI L Is mr.
cent which would bring the ayerase up rtfu3d 70 ID
per cen, earned on the siofK anG i, h per cent
wears f * per cent Operating expenses in ne
eigHt wears have averaged in excess Of SO per cent
With average gross earnings OF >2oWyooo, ms ,
uercentage o. OucratiEg expenses Win tle I..l-
pproyerneTts made could he reduced al least per
cent or an average Of 100000 a year or ano'her
! ner cent FOR New York Central stock
With fhe Lake Shore bought with ne refunu-
ing completed. and with earnings no better t.bn nan
they have averaged for the last eight years tie
New-York Central would earn 81 per cent
Every railroad man is aware that Lake SnoiG
methods Of operation on the New-N ork CehTtl
would save for The stock large amount Of monedy
thsre is no reason why the Ncw-YOrk Central
could once pay per cent ana Earn IA h,s1os no
over the average of these eight poor years would
swell fbe New-York Central earnings for the stock
10 between and 10 per cent - - III,
Il is the impression that New-York Central VIII
80 : per cent basis. and a hitIe later pay
York Central stock viii sell someThere bfiWeen
I25 and l3O and later on betweea liO ana LOO
Ono strong mi roint on New-York Central stock,
often overlooked but Of great mPSsanGG to se
fact that the Stock Is free OF taxes. Accordingly.
per cent dividend on New-York Centraih al IS
equivalent 10 per cent dividend on fo'he o'"ei