New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-07-01
CENTRAL LEASES B. AND A.
| THE FORMAL TRANSACTION ADOPTED
BY BOTH BOARDS OF DIRECTORS.
VANDERBILT LINE GETS FIRM HOLD IN
NEW OF ACQUIRING
THE FITCHBURG AND THE
NEW-HAVEN

THE FITCHBURG AND THE
NEw-HAvEN
The NewYork Central and Hudson River
Railroad has leased the Boston and Albany
Railroad for term of 800 years. The lease Is
based on a guarantee OF 8 per cent on the Bos-
ton and Albany stock. 1t was unanimously
&C cnfirmed at meeting Of the Board os Directors
OF the Central, held in the Grand Central Sta
ton yesterday afternoon The meeting did not
adjourn until word had been received from Bos-
ton that the lease had been sanctioned by the
Boston and Albany directors there. All the de-
tails were finally decided upon some time ago.
and yesterday the formal transaction took place
The action of the two Boards has to be con-
frmed by the stockholders and in the case Of
the Boston and Albany must be confirmed by
the State of Massachusetts, owing to clause
in the Boston md Albany charter AS soon as
these details are decided the Central will take
active charge OF the operation Of the Boston
and Albany.
The air has been full OF rumors OF late about
consultations and changes in the railroad
world and especially in the Vando rbilt system.
When Samuel r. Galloway came here to take
charge of the New-York Central he looked over
the railroad situation In the East with the
trained eye of an experienced railroad operator
and manager He made a remarkable record
In his Western railroad work for getting rail-
read property in fine physical shape and keep
ing it there and II a successful operat-
Ing official that he was regarded in the East.
He has. however, recently developed a remark
able aptitude for railroad diplomacy. and the
Boston and Albany transaction is due almost
entirely TO his personal work and suggestion.
When Mr. Galloway came East he first de-
voted himself to bringing the road into better
physical condition. He found at the time that
the New-York, New Haven and Hartford was
buying UP everything in sight in New England
and intrenching itself strongly in Boston. He
studied the situation carefully, and finally de-
cided that the New-York Central could guaran-
tee per cent on Boston and Albany stock. and
that IT was necessary to defend the Centrars
interests In New-England by getting Boston
terminal Accordingly negotiations were begun
on this basis, and yesterday the transaction
was closed.
There has been talk that the NewYork Cen
trail will acquire the Fitchburg under lease in
the near future. Now that the Central is in con-
troll of the Boston and Albany 1t has completed a
clever stroke. railroad men say and has out
wtted the New Haven. which at the time the
Central was in negotiation for the lease was
deavoring IN a leisurely way to tie up the prop
take hold If 1t wished, at any time. with the
Boston and Albany lease. however the New
York Central intrenches itself strongly in New
England. and the acquisition of the Fitchburg is
not a matter of such need as formerly. II is
known. however, that some time ago the Van
ierbilt interests offered to take over the Fitch
burg basis of a per cent guarantee Of the
stock, but this was rejected by the Fitchburs.
4,ctt
burg will eventually come in
As far the acquisition OF the Central Ver-
mont is concerned, that is declared to be beyond
any reasonable possibility. DR.. w Seward Webb
was and is much interested in the property, and
has studied it carefully, but IT was acquired by
the Grand Trunk some time ago, and so is not to
be leased. The Boston and Maine is said to be
in line for merging with the NewYork Central
as another step after the Boston and Albany
transaction and while there is no strenuous de-
NAL that negotiations are under way it Is said
that nothing definite has taken place.
The ultimate result TO the New-Haven rail-
road owing to these consultations and changes,
Is a subject Of keen speculation among railroad
men. c. p Clark president of the New-Haven.
is now in Europe but he is expected back within
ten days. when. it is said he will again assume
the active work OF president. There are reports
that the New-Have must soon be merged either
into the New-York Central or into the Pennsyl-
vania II has been said that the acquisition of
the Boston and Albany by the NewYork Cen
trail would be regarded by the Pennsylvania as a
stroke against It's interests This is denied and
II Is known that the relations between the New
York Central and the Pennsylvania are harmo-
nious. and that perfect understanding exists as
fc llty
ceded that the New Haven must go either into
the PENNSYLVANIA or the Central. 1t is known
that some influential men in the company are
bitterly opposed to the Central and would pre-
fer to 60 over to the Pennsylvania even at a sac
rifce. on the other hand. the Vanderbilt innu-
ence in the road is strong, and recently the van
derbilts have Increased their holdings so FAR as
is known nothing has been done by either com
pany named for acquiring the property, but II Is
expected that steps will be taken by one or Doth
~ the roads when Mr. Clark gets home.
The news OF the confirmation OF the Boston
and Albany lease by the directors Of that COM
many and of the New-York Central did not reach
Wall Street until after the close Of business yes
terdav: but IT is not likely to have any especial
effect upon the market to-day, as the terms OF
the proposed lease and the practical certainty
that II would be executed have been known In
the financial district since early in the week
AS VIEWED IN BOSTON.
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