The daily morning journal and courier., 1899-07-28
BOSTON, ALBANY DIRECTORS
HOLD AN EXEC UTIYE MEETING AND
 ISSUE 4 STATEMENT.

IL Sets Forth That it is for the Interest Ol
 the Stockholders to Ratify the Lease
 to the New York Central Road as 1t Is
 Dependent in n Measure Upon Tha,
 Road Which Guarantees an s I-2 Pc,
 Cent. Dividend.
 Boston, July 27.--The Boston and AL
 bany directors held an executive meet
 ing in this city to-day. At this meet
 ing they faced the opposition which is
 being organized against the ratification
 by the stockholders of the lease of the
 road which the board recently made to
 the New York Central and in reply is-
 sued a statement of the reasons they had for entering into the lease and of
 the benefits which they believe will r. suit from it. They also asked for proX- ies from stockholders in support of their plan.
 The statement reviews the terms of the lease and points out that as re- suit of the rental and of the reserva ton of s4,00o,0O0 of property the stock annum, or, if the property is sold, s per cent per annum and cash payment of $16 per share. The directors then emphatically advance the claim that tlse term of the lease owing to the provi-3 sion that the lessee shall pay taxes &C., tually will net more to the stockholders than would an exchange for 1-2 per cent. bonds at $500 per share, or for cash sale of the stock at the same amount Then among other arguments is a detailed reply to the claim that the road could safely pay 10 per cent dividend and a review of the failing earning capacity of the road and an em- phasizing of it's dependence upon the New York Central, so that the lease is practically the Albany's best oppor- unity
 The only absent directors were Hon. Chauncey M. Depew, who has been in Europel, and James A. Rumrill Of Springfield, who had, however, author ized the affixing of his name to the statement which MT. Depew is also known to favor. The only objector on the board Charles s. Sargent of Brook line, was present.
 The directors present and signing the statement were: President William Bliss of Boston, who occupied the chalr Vice President Edward D. Haden or Woburn who acted as clerk Of the board; Directors Jacob c. Rogers or Peabody, zenas Crane of Dalton, Ed- ward l.. Davis of Worcester, Samuel JIoar of Concord, who is also the gen. erals counsel of the road; Hon. Stephen Salisbury of Worcester and Hon. AL bert G. Houghton of North Adams
 Tn a senli-official statement President Bliss of the Boston and Albany rallfoad discussed the lease of the Boston and Albany to the New York Central. MT. R1iss avoided mention Of the terms of the lease, which constitute the only subject to controversy between the dl- rectors and some of the stockholders, hut he freely discussed the proposition in it's broader bearings. MT. Bliss 1n- tir71ated that the establishment of a | through Vanderbilt line by means of the acquisition of the Boston and AL | bany will lead to improvements Of the | property, presumably including it's terminal facilities, in proportion to the increased business which is expected to
  come to Boston. President Bliss said that a proposition to lease the property had been acted upon thus early that the stockholders might have sufficient time to discuss the matter before the next annual meeting, which takes place on September 27 next. Discussion is what is wanted he said, and the wider the better the directors will like 1t.
 President Bliss denied that an agree ment existed between the Boston and Albany and the Central to the effect that each company had obligated itself to turn over at Albany a certain amount of business with a view of having the exchange on a reciprocal basis and said that eastern shipments were fully S5 per cent. greater than those that moved to the west, and while the tariffs on the trade moving toward the seaboards were a astonishingly low yet the handling of it was a source of profitable revenue to f the Boston and Albany. Tn dwelling upon this point he went on to say that the New York Central was is a position to take the products of the west to the Atlantic seaboard as cheap, if not cheaper, than any other railroad system in the country. This was pOSSlDlG because or US upSuTpdSSeQ | trackage and equipment, which permit ted the hauling of freight trains made up of from sixty to seventy cars, while , many of the other roads could not handle more than half this number in single train. In enlarging upon the question of freight rates President Bliss said there lad been downward movement in tar ( if for the past two years and the bot om was far from being reached. These ,hanges would continue on their pres { ,nt course so long as it was possible to ,ffect new economies in the methods of ransporta tion and the Boston and All )any should be in a position to accept | ts proportion of these through charges without embarrassment to its income. Il it's relation to the public, continued | President Bliss the Boston and Albany annot afford to permit competing lines O make better terms with shippers than d re applicable over it's own system Consolidation of railroad properties, , aid MT. Bliss, is generally followed by !. reat improvement of the physical con- ition of the roads taken in and he alled attention to the condition of the U pp