The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-09-24
THE Bos1ox, AVID AnBANr LEASE
The Protection Committee Hostile to the
Central Gets Control.

The PrOteetfOn committee hosEiS ~ Inv
Central Gets Control.
BosroH. Sept 23.-The annual meeting OF
the stock holders Of tho Boston and Albany
Railroad IL TO be held on Sept. "a and At that
time 10 IL extremely likely that such changes
will be effected In the Board OF Directors as to
make that body in the majority opposed to the
PROPOSED lease OF the road to the New York Cen
trail Railroad Com pany. tits said semi-ofiicially
that the so-called Protective Committee. Or
gained by stockholders opposed 10 the lease.
has secured proxies for over $4,000 shares
Of stock. thereby giving them a majority. as
there are only 100000 shares in all.
When the Protective Committee began its
labors two months ago. It had the control OF
about 90. 900 shares practically assured. As 1t
would take q two-thirds vote 20 secure the
ratification OF the lease the members soon
secured more than the necessary excess
over one-third to defeat 1t. Then the pro-
tsstive Com mi ttee practically went over the
heads Of the directors who had proposed the
lease and tried to secure better offer from
the New York Central. Whether they did
this or not they have not said definitely. but a
man well informed in railroad affairs. says
they secured no change OF any value.
But the Protective Commits has gone on
getting more proxies and more power all the
time until It has become common talk In nnan-
than enough to defeat the lease in its present
form.
This seems to be we'll founded from the fact
that It 10 An nounced that the special meeting
to vote on the lease has been postponed to
Nov. 10. though the directors had planned it
70 take place imm ediatey after the regular
meeting.
As it 10 now. only one OF the board OF d.
rectors 10 known to be opposed to the lease.
and . change OF three men would be nee
oseary to gain control by the Protec-
tive Committee. Whether President Bliss
would DO one OF the men to retire
cannot be said definitely. but as he is one OF
those most earnestly In favor Of the lease 1t 10
fair to assume that he would not caro- to re-
main at the head OF q directorate with which
he was not in sympathy.
Many OF the men on tho Protective Com ittec
have said that they were not opposed to q lease.
but thought the terms. 8 per cent. and bonus
of "a, 900. 900. were too low for road whose net
earnings have OF late been 10 or II per cent.
1t 10 thought that the Protective Com mittee
will endeavor to get better terms. but men who
are thoroughly eonyerssnt with the situation
say the New York Central has made its best
1t therefore Looks as though the road would
pass into the hands NJ new management
SsioIs many month. and that /, YOU'D not 1s
Haven and Hartford Road IS not considered
likely to take II, owing TO the friendly condition
OF the Morgan and Vanderbilt interests. So
the Boston and Albany will probably retain its
identity as at present. and whether or not 1t
can also retain It's business 10 question.
The friands Of the lease say the big divi-
dends are possible only because 80 per
cent. OF it's ,freEht business is given to
itby the New York Central Should the after;
sending its freight over other lines It
would tend to lessen the Boston 4 Al
bany's receipts. for the, road would cease
20 be a connecting link in through
line. The Protective Committee has really
obtained control of the road. II may be that
its mem bers see some way TO make profit
able turn in the situation. but IL SO they are
not making IL known.