The Worcester spy. [volume] (Worcester, Mass.) 1898-1904, 1899-06-27
WANT THE B. & A.
Likely to Be Leased
by the New York
Central.
Big JUMP OF THREE STOCKS.
Present Dividend Guaran-
teed From the
Start.

1t is given out from the most au-
thoritative sources that the New York
Central will this week conclude a lease
Of the Boston and Albany railroad sys-
tenn for practically indefinite period
This is the consequent sequel of the
return from abroad of j. Pierpont Nor
gan and w. K. and Cornelius Wander
bilt.
The reticence of the Albany officials
exceeds in measure even their usual
reserve, but the opinion of the street
is that the story is to be taken serious
ly, or at least that there is something
going on in Boston and Albany of more
than ordinary import. To quote one
prominent banker who is usually well
informed upon the early stages of large
deals, ut is generally safe to assume,
when a rumor like this attaches to as
great a property. as the Boston and
Albany and meets with no denial. that
there is something behind it," Samrel
Hoar, general counsel for the road, dis
missed an inquirer yesterday with the
laconic reply, 81 can say nothing Whit
ever upon that subject" and even said,
in reply to another question, that he
did not know when a meeting of the
New York Central would be held tits
week. Vice President Hayden refused
to confirm or deny the story.
1t is stated that under the terms oil
the deal already agreed upon, Boston
and Albany shareholders will be guar
anteed eight per cent, which is the dlY-
idend they now receive, for a perlcd
of ninety-nine years. The fact that
cash earnings in excess of this inquire
have frequently been distributed makes
the contract profitable to the New York
Central from the start.
In the stock market the story re-
ceived ready credence, to judge by the
movement of the Boston and Albany
stock, which closed at $50 Saturday and
in the course of the first half hour
trading yesterday went up to 2l2, A
first sale of three shares was made al
267. and all subsequent sales of the
morning, the whole reaching a total
of thirty-four, were made at 2f2 New
York, New Haven & Hartford, whlch
closed Saturday at 21S, rose yesterday
morning to 21S, probably from reenns
that the same suspicious fate might
he in prospect for that road, and New
York Central went up 3-S points yes
terday morning to 1877 7-S.
The deal. if enacted is expected 70
give to the shares market status
above anything that the independent
operation of the road could make GER
tain. as the consolidation would provide
a guarantee Of continuance of dividends
from the very source which heretofore
has threatened most of rivalry
Thus, New England railway busl-
ness is likely soon to feel the effects
Il NTop1nrhi1f control Intlm1-
lions are indeed, to be heard suggest
ing that the present transaction may
be but preliminary to the even great
er ACQUISITION by the New York Cen
trail of the New Haven system itself.
Mr.. Morgan and Messrs. Rockefeller
are dominant in New Ravens control
and what they direct can be accom-
plished readily. Vanderbilt Interests
continue to hold representation in the
New Haven directory, though Their
stockholdlngs some time ago became
relatively small.
Wall street has many times heard the
report that President Clark of the New
Haven Company was intent upon plans
for acquiring rival property in New
England territory, and there have been
circumstantial indications that nego-
tiations on this line We're under way
though, of course, the facts have been
officially denied, just as there used tc
be denials continually of the New York
and New England negotiations even to
the very day of that mergers compile
ton.
The figures given out by the New
York Central board last week obvious
" were prepared for influence upon the
stock market. In some quarters a
better dividend rate than one per cent
s.. ~ he o1ftnf-
pated. AS the rate was to be kept
down to one per cent, the board evil
IDENTIFY thought it desirable to show that
a substantial surplus would remain af-
ter the payment of $4,000000 in divi-
dends for the year. Hence, the unusual
spectacle Of q preliminary official es-
timation of results in detail a week be-
fore the end of the year, and two
months before the appearance of the
printed report in which those interest
ed can find exact results for them
selves. As the figures stand, with
out analysis, 51a per cent instead of
per cent might have been paid fol-
1S9S-'99, without quite exhausting the
available funds.
The preliminary estimate shows an
increase of less than 5000, 600 in gross
earnings this year in total business
of $45, $50 00O This is very small
item. Inc gam WAS NHolly III the
passenger department. Freight earn
ings have been considerably less this
year than last partly, it would seem
because last year they were unprece-
IDENTIFY large. But the really signif-
cant factor in the statement is that
of operating expenses. Leaving out
of the charges to maintenance an item
of $50, 900 expended for new equipment
and this rather specific appropriation
from income than an operating charge
the operating expenses of the year
have been 81, 355, 900 less than in 1S97-'9S
Notwithstanding the increased volume
of traffic. The evidence is sufficient
that this saving has been effected in
the transportation department, where
alone it Is a genuine saving, and not
by the scanting of maintenance or bet
terments. In other words, New York
Central under President Callaway's
management, appears to have fallen
into line with other progressive roads
in meeting steadily falling rates by the
application of scientific methods to re-
duce the cost of transportation.
The presumption is that the new
equipment referred to is not wholly IN
addition to the company's rolling stock
but is in part only replacement. Corn
pairing 1895, the first complete year of
the present system, with 1898. the
equipment inventory showed an APP
parent shortage Of some 5000, 900. In the
three years forty-seyen locomotives
and fifty passenger cars had disap-
peared from the list, while 1888 freie hi
and work cars had been added On the
usual basis Of valuation, the deficiency
Of equipment maintenance in the first
two items was $4,000, and the excess
in the third was S394000. The capaci-
~ of fha fref~hf cars had more ecad