The Worcester spy. [volume] (Worcester, Mass.) 1898-1904, 1899-08-13

future may not find it a maximum
rate? This rate of 71sc per hundred
pounds from Chicago to Boston gave
the New York Central s1.S9 per train
mile, including the return of the empty
cars, and Tic per train mile to the
Boston and Albany, including the re-
turn of the empty cars. The Boston
and Albany people say there may be
money in it for the New York Central,
but there is no money in such traffic
for the Albany operating independent
ly.
Twenty years ago New York Central
sold at a price above Boston and AL
bany shares. The New York Central
entered into a contest with competing
and parallel lines, and took its share
in the ups and downs of railroading
on large scale in the United States.
The Albany stood aside, kept its gross
volume of business at a steady level,
and did only the business which paid
the best. The New York Central has
had it's dividends cut from eight to four
per cent. The Albany has given its
stockholders a few plums and strength
ened it's eight per cent situation, until
its stock sold at $3.50 before this lease
was proposed. Now the managers de-
sire to crystalize their success and, like
the stockholders in the Old Colony, take
Is
risks.
They believe they have made every
safeguard in the lease as written, but
if anything is found to be defective,
they hope they are without pride of
opinion that would prevent their cor
recting it.
They believe the railroad laws of
this state, and the hold the state still
has on the Boston and Albany, would
prevent any sacrifice of this property
by improper operation, but they believe
also that the vanderbilts have always
been up-builders and not tearers-down
of properties.
They believe that the public will be
better served and that the stockholders
will get the largest possible measure
of guaranteed return; that the New
York Central can better demand five
hour connections with New York and
can better force Boston and Albany
dining cars over the New Haven lines,
should the public desire improved SER
vice in this direction.
1t does not require a two-thirds vote
of the Boston & Albany stock to make
the lease effective, but if in New York
state only majority vote is had, legis-
lation must confirm the lease, whereas
with tWo-thirds vote New York legis-
lation is not necessary. In Massachu-
sets the case must go to the legislature
anyway.
The people who have drawn the AL
bany lease do not believe that the laws
of this commonwealth will in the flu
ture furnish any less protection to
properties in respect to the issue of
bonds. They hold that the legislature
or railroad commissioners are fully
competent authorities to pass upon any
bond issue, and that no bond issue will
be permitted in this commonwealth to
repair capital account. In the case of
the Boston & Albany the lien of the
state upon the Albany is doubly strong
to enforce any demands they make for
the protection of the Albany property,
for the state can take the property
either by appraisement or at par, by
making good 10 per cent dividends from
the beginning; and when the act is
drawn for the approval of this lease,
by the legislature, it will be written in
the act that the state valves none Of
its rights now possessed in respect to
the Boston & Albany property.
In regard to stockholders privilege to
ride free so as to attend the annual
meeting, which privilege has always
been possessed in the past, we under
stand that as the New York Central
desires to abridge no privileges and to
modify no written or unwritten laws
now existing, stockholders will still be
carried free to the annual meeting. An
announcement to this effect may be
made in due time.
The supplementary agreement" was
not an afterthought, but was part of
the lease separated therefrom because
it was operative for only one year and
does not relate to the property as it
may stand leased in the future but to
the disposition Of stockholders present
assets. These assets are guaranteed to
yield S4,000000 and may yield slightly
more If the New York Central elects to
have the Albany dispose of them, but
If the Central elects to take them for
$4,000000 37s per cent bonds, the in
come will be $4,000 per annum, or $15,-
900 more than " per cent on Boston &
Albany stock. The 5000 shares of New
York, New Haven & Hartford stock in
these assets may or may not be wanted
by the New York Central road
In regard to this lease obligation of
the New York Central being subordin-
ate to the Lake Shore, it can be said
that it cannot be otherwise because it
is provided in the Lake Shore agree
ment that the New York Central shall
guarantee the superior obligation of the
New York Central to the Lake Shore
stockholders in every lease obligation
subsequently made.