The Worcester spy. [volume] (Worcester, Mass.) 1898-1904, 1899-03-29
But Worcester Stockholders
in Fitchburg Are Happy.

The railroad situation in New Eng
Land is becoming more complicated than
ever through the action of the holders
Of the common stock of the Central
Massachusetts, who have brought leSal
process to have the lease Of the road
to the Boston g. Lowell set aside, on
the grounds Of its illegality.
The question is being asked Who are
the large holders of the Central Mas
sachusetts common stock that demand
that the property be turned over to
them?" Judging from the movement
that has been going on in stock in this
locality for some time past. carrying
the price of the common stock up from
Sc to $27. it seems as though the deal
had assumed much larger proportions
than any simple stock market move
ment.
There is a big New York crowd be-
hind it. and the only sensible assump
ton would point out the New York
Central interests. 1t would be the most
valuable acquisition naturally that the
Vanderbilts could secure just now
The Central Massachusetts was built
about II years ago by the Boston q
Lowell road, and when that property
was absorbed by the Boston II Maine
the Central necessarily came under the
management of the Boston s Maine.
In the legislative act athorizing the
construction of the Central and provid-
ing the means for building thy line it
is specifically stated that the preferred
stockholders shall have absolute con-
troll of the property.
Under the lease of the 3 oston &
Maine it is stipulated that 20 per cent.
Of the gross earning Of the Central
shall go to the road and that the pre-
ferred stockholders SHAH tecelve s per
cent. dividends providing the income
warrants it. The facts are. however,
that the income, after deductIng $105,-
900 for interest on the bonds, leaves
but about l per cent for the benefit
of the stockholders. 1t is evidently the
belief of the holders of these securities
that the earnings of the road could be
greatly increased, were it not that the
Boston & Maine in order to help out
the revenues of the parent company,
defects a large part of the business
that legitimately belongs to the Central
to other of the lessee's branches.
While it is believed that the manage
ment of the Boston G. Maine stands
ready to defend whatever rights it has
in this property, it is also certain that
it would not die of grief in the event
that the courts declare the lease null
and void. If the truth We're known,
there is a considerable sum standing to
the credit of the Boston & Maine over
and above the past earning capacity of
the Central; or in other words, the
road has been a burden to the Boston
& Maine for some time past.
With the present lease dissolved, the
question naturally arises: What would
become of this property? Its easterly
terminus is in Cambridge, and, while
it reached out to Northampton, yet it
controls no line to a junction with the
New York, New Haven and Hartford
road with which it exchanges business.
At this point 1t also forms a junction
with the Connecticut River road, one
Of the leased lines Of the Boston and
Maine, and, standing alone. with the
Fitchburg on one side and the Boston
and Albany on the other, it is difficult
to see what amount of business would
come to the Central. 1t is very clear
that the Boston and Maine, if the lease
is broken could open up connections at
Oakdale and turn what business is now
given the Central at Northampton to
fI
seen tharaforo maj iP tba c,a,1+roI is -
stand alone II viii he hoeet Nv rlany
difficulties
AS the Iaasa oc tho Ros+o,, q. r.o,,,et1
nv the Central NTassanbnsn+ts ~ 49,
Boston g. Maine has baen ratifiad Nv the
IegisIst ure II ie diaic1,It ~ sn. XIV ~
can he hroIzan saWa Nv tbo 1oerisIa+,,.oi..
taking hand in orCcaa1i,los9 '>'i'' ~
Tha aarninr rnssihjIi+ion IS +,o ~,
trail MaseacI7,lett. aro soprat ~ ~
nondar over r. 10 ca,,itoI,zad saiie.
Preferred stool 20 OF 90o o rorto"M
4oI 90 I0oi A. S''% ~ ~ ccliIiioh
nrn,,a,,t, a., 80. so0o o@n " SiIe
sn1,1i,o +1,ot ~ 80 ,,I5 a eaI,
fo,. en- 49,, touio DG op- III
s,j,,o s9eo oon W tos9, LIS Mou'o
9-bioh af,o, q a. ~ "a. iliIi79' ouI VI
honds at'o,,rItG, eI pol I'm. IN gu liie
~ 80 saeo 900 .'t s 70 @soo, mere Wo'llu
NO, %[p0'G ~ Iol pielgIteu anu colu
farad stlta, - OeII 1, On tt nooo p non
~ st eno ooo "oulu cal ior HzUU'ooo'
a. iiis Soo,ooo, or epouI per cent on
Ia ne SVi.iliioL t CIuGi me eHlsilhs
, aos .l,e pTtTlI eu sFts niue Tess IMAM
d ~, y WINE tHe common STOCK gets
''IC.iIith,