The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1899-10-25
1T is PEACE FOREVERMORE
If ALL THE RAILROAD STORIES
COME TO PISS.

roads In New EngInmd-Whnt Presl'
dent Galloway Says About the New
York Centraps Coming Increase o.
Stock.
New York paper is quite positive
that the new move of the New York
Central railroad in deciding to issue
$l5,000,000 of new stock and the road s
election of William Rockefeller to the
executive council of the Central marks
the surrender of the Consolidated to
the Central. The next step, it is added,
will be the absorption by the Central
of the Boston and Maine, the Fitchburg
and the Maine Central roads, after
which, as far as railroads are con-
cerned peace will reign within the Dor
ders of the New England states for
eVermore.
Wall street was undecided yesterday
whether to go into a furore of joy over
New York Centrals coming large in
crease of stock or to regard it as a
bear argument on the stock. On one
side it was argued that the showing just
made by the New York CentraPs report
indicated plainly that the Central was
now earning at the rate of 10 per cent.
a year on it's stock-whch would mean
a great deal as to thf future of the
value of the stock. On the other hand
it was argued that the new issue of
stock disclosed the fact that the Cen
trail was put to it, for necessary equip
ment and was in other words hard
up" as it ought to have provided for
new equipment out of it's earnings in
stead of adding more to the roads OBJ
legations in order to do it. The bears
urgently maintained that woeful lack
of equipment, was disclosed by this ac-
ton Of the central. The bulls urged
that the Central has been spending
"big money in the last few years out
of it's earnings for new terminal IA
cilities and other improvements.
Apropos to this interesting topic,
President S. r. Galloway of the Cen
trail was asked yesterday afternoon by
another New York paper if the $15,O00,-
600 increase of stock wasn't very large
amount to spend for new equipment.
Mr.. Galway replied: I'VE needed the
big increase in equipment and issued
the new stock to pay for it. We did
not see any other way to get it and we
didn't want to buy cars and engines
without being able and ready to pay
for them. An item in the quarterly re-
port of the Central was referred to Mr..
(,.JI- a1,tI
ed in the operating expenses for the
quarter ending September 80 $701, 900 for
new equipment and other extraordi-
nary Items This head, the report
stated, covers the expense of providing
1000 thirty-ton coal cars, twenty ca
booses, three Hangers, fifteen milk cars,
seven horse cars, four ice cars, six pos
tai cars, three smoking cars, and one
composite car. Now, with a surplus
still unexpended, after the dividend has
been paid, of more than $1,500,000, Mr..
Galloway was asked why any reasona-
BILE increase in equipment could not
have been provided for out of the regu-
lar earnings.
I'VE couldn't do very much, however,
with only a million or so year." de-
cared Mr.. Galloway. I'm fifteen years
we might be able to get what we want
by that method, but we can't wait that
long. We want 10000 cars right away,
mostly for freight service, about fifty
passenger cars, and hundred engines.
That will take two-thirds of the amount
the new stock will bring in We owe
for equipment already sup
piled, and the rest of it will be applied
directly to the betterment of the SER
vice. Do we need 10000 new cars? We
wouldn't buy them if we didn't We
don't buy cars for sport. The demand |
for more cars is imperative, and we
have simply met this demand in what |
we believe the quickest and most salts
factory way"
Asked if the increase in the balance |
available for dividends, which was this
year 2,55S,371 and last year $1,522,214,
and the reduction in the operating eX-
penses from 6157 per cent. in 1898 to
1912 in 1899 had anything to do with
the increase of the stock, President
Galloway said: "The stock was issued
n order to purchase equipment which
was needed by the road. I know of no
,ther reason