The daily morning journal and courier., 1899-07-01

dendS of S1S per cent. on their lease. Of
 course, this recommendation may be af-
 fected by various after considerations.
 In the first place, it must be accepted by
 the stockholders, who will vote on the
 proposition at the annual meeting to be
 held September 27. Then it must be
 approved by the legislature of this state. All these preliminaries being favorable
 to the proposition, July l, 1900, will find
 the lease in operation and the new ten | ants in control.
 In the absence of President Bliss,
 Hon. E. D. Hayden, the vice president,
 said at the conclusion of the meeting:
 "The directors have voted to recom-
 mend to the shareholders a lease of the | Boston and Albany to the New York | Central for a period of 999 years at $
 per cent The directors reserve $i,OOO,- | 900 of property not necessary to the
 conduct of the road.'
 It is understood that the preliminary
 arrangements for the lease were arrang-
 ed by President Bliss, Vice President | Hayden and Samuel Hoar, counsel for | the road The origin of the project | dates back months, and even years. It was first suggested at an informal meet | ing of representatives of interests in
 the New York Central and Albany roads and gradually took shape until an of fer was made. It is assumed, from the
 action of the directors to-day, that the
 lease is sure to be ratified by the stock
 holders They have quietly ascertained the sentiment of some of the heaviest stockholders, and have been guided by that. To a certain extent the ascertain- ing of the wishes of many of the stock
 holders would be quite q complicated task, however. The holdings have been split up into small parcels and are dis trbuted throughout the state-nine- tenths of them, at any rate. It is said that there are five thousand people in this state who have holdings of less than twenty shares each. In many fam flies the stock has come doWa from two or three generations. It has been fa- vorite investment for trustees.7 There seems however, to be no question that the recommendations will be approved by the stockholders. It is expected that the approval of the state legislature will also be obtained without any great difficulty.
 If it can be shown that the lease would be for the interests of the state and the city of Boston the only issue which would seem to become matter of discussion would be the question brought up in the last legislature whether the state ought to take advan- tage of the option it has of purchasing the Boston and Albany road. When the Boston and Worcester, the Western, the Albany and West Stockbrdge and the Hudson and Boston were united the following section became a portion Of the legislation affecting this consolida- tion: "The commonwealth may at any time purchase of the Boston and Alba | ny railroad it's road and all it's fran chises property, rights and privileges by paying therefor such sum as will | reimburse it to the amount of capital l paid in to the several corporations com | posing it and to the Boston and Albany | Railroad company, with a net profit | thereon of 10 per cent. year, from the | times of the payment thereof by the stockholders of said corporations, re- spectively, to the time of purchase"
 There has always been a great ques- ton as to just how much the state ought to pay. The management of the Boston and Albany road has, as is well always been of an extreme ly conservative character. But for this fact a change of control would undoubt- edIy have been effected years ago. It remains to be seen how financial circles will take the terms of the present lease, but if it is regarded simply on the ba- sis of past earnings the guaranteed div idend is reasonably fair, although it is not up to the actual net earnings of the property.
 One of the directors after the meeting said that the lease would be an excel lent thing for the city and for the state. He said: Some of the stockholders of the road may not think it is quite so profitable for them however It means l great deal for the development of this port. Suppose the Vanderbilts choose 70 expend $5,0OO000 in the development of freight terminals in this city To hem it is a matter of no tremendous i importance. To us it would be out of he question"