The Portland daily press., 1899-06-27

Lease Said to Have Been Prac-
tically Closed.

New York, June &c The Tribune to-
morrow will say; The report that the
New York Central had come to an agree
ment with the Boston and Albany rail-
road by which the Central would lease
the Boston and Albany for term of 900
years and guarantee eight per cent on the
stock, was not a surprise either in rail-
road circles or in Wall street. That the
lease Is practically CLOSED was confirmed
from a trustworthy source yesterday.
New York, June 90 Important cor
poration meetings are to be held this
week at the Grand Central station. The
return from Europe of j.. Pierpont Nor
gan, W, K. Vanderbilt, and Cornelius
Vanderbilt is to have prompt and conse.
quential sequel. Financial transactions
extraordinary and far.reaohing are 20 be
put on record. Some OF these have been
long Neutrality-suspicious. extending
over many months; and one result Is to
be the making Of marked changes in rail.
road maps both West ana East.
| The deal regarded In inner circles as of
foremoss consequences is to be completed
hrst-the acquisition by the New York
Central Railroad company, under lease,
of the Boston and Albany system. An
nouncsment of such an accomplishment
will come as great surprise to financial
and railroad circles alike. Tbs import
ance of it can hardly be overestimatei.
| In essential ways IL adds to the strength
| and ataudiuO of the NAW York (1anf1al
It gives to the Vanderbilts not only
entrance into New England, but Ii pro.
vides advantages through that entrance
which are inealculabte. Since William
81. Vanderbilt one night took his West
| Shore competitors into camp close TO If
| teen years ago. nothing has been planned
and accomplished comparable with what
| Is involved in the present transaction
/ Strenuous efforts are being made to
guard the pending arrangement against
publicity. Affairs of such size need to
DO carefully conducted, fact taught in
]. Belden. whose intrusion with an in
| junction cooled much of the enthusiasm
OF the first announcement Of what there
/ was impending.
| Thus 1t is difficult. at present, in ad-
vance of the completion Of every detail.
and the making of every stipulation, to
obtain even Official acknowledgment that
anything whatever is afoot. Less effort
to maintain secrecy will probably be
shown after the present week, as q meet
| ing Of the utmost Importance viii take
place in this city with representatives of
both the great corporations In attendance.
/ Under the terms OF the deal, already
agreed upon, Boston and Albany share
holders will be guaranteed S per cent
dividend for 500 years. Eight per cent
Is the dividend they now receive regular
". though earnings running beyond such
rate have provided extra cash disbur Sc.
| ments more than once. y
| Thus the contract is profitable from
the start for the New YORK Central,
| though the Boston aud Albany stock
| holders are literally compensated through
what is virtually q limitless time guar
antee. 1t gives to their shares a market
value status above aught that indorend-
emit operation could make positivelyas sure.
| taking into consideration normal proba-
biiities of change In railway affairs, in
| GLIDING possibilities even of competition
| from the very quarter now to provide the
dividend guarantees.
New England railway business is like
| ly soon to feel the efforts Of direct Van
uerbilt control ana activity in Boston
and Albany, New York, New Haven and
Hartford interes is may have prompt real
ization OF the ap pearanve OF new factors
| In the situation. Intimations are, In
| deed, to be heard suggesting that the
present transaction may be but prelimi-
nary to the even greater acquisition by
New York Central of the New Haven
system itself.
Mr.. Morgan and Messrs. Rockefeller are
dominant In New Haveu's control, and
what they direct can be ACCOMPLISHED
readily. Vanderbilt interests continue to
hold representation in the New Haven
directory, though their stock holdings
come 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 his property's rival In New
England territory, and there have been
tclrcuIhstantial Indications that negotis-
tions on this line were under way,
though, of course, the facts have been
officia llydenied, just as there used to be
denials continually of the New York and
| New England negotiations, even to the
very day OF that mergers completion.
Over and over again strained relations
have caused irritation between Boston
and Albany and the New Haven under
its present. administrations; and there
have not teen lacking sometimes sugges-
tions that some features Of New Have n
policy have Jared New York Central
equanimity. But there have been no
public conflicts.
This Boston and Albany deal Is the
personal Accomplishment Of William Z.
Vanderbilt. He planned 1t, and he ar
ranged plans for the execution of it. In
Europe apparently devoted to recreation,
he was continually in close touch with 1t.
Till success was assured, probably not
more than one msmber of the CentraI's
Board of Directors knew what was in
prospect-that one being Mr.. Twombly-
though before the agreement could be
finally considered settled, MIR. Morgan
was, of cousre, advised, and he Is cred
tied with saying TO Mr.. Vanderbilt that
he considered the transaction more inn
portant than any of similar character in
national railway history.
A New York Central authority figures
that through it's practical Boston and
Albany ownership New York Central
viii be able to add tremendously TO its
own net earnings. Extraordinary operat.
ing economies are of course practicable,
and there can be no longer competitive