The Worcester spy. [volume] (Worcester, Mass.) 1898-1904, 1899-07-01
VANDERBlLTS CONTROL.
Matter Must Be Referred to Stockholders
and Legislature Before Road Can
Change Hands---W Take Year
to Transfer the Property
Basis Of the Lease.

Boston, June Soft the stockholders
ratify and the state legislature approve
the recommendations or the directors
of the Boston and Albany railroad, one
of Massachusetts, great railroad sys-
TENS will on and after July 1860, be-
come part of the New York Central
and Hudson River Railroad Company,
at least for period of 999 years. Stimuli
taneously with the meeting Of the New
York Central directors in New York
today, the Albany directors came to-
gether in this city, although President
Bliss was in attendance at the New
York meeting.
The directors of the Massachusetts
road after a short conference, Iassed
the vote recommending the lease, with
the proviso, however, that an 5 per.
cent dividend payable quarterly, shall
be guaranteed by the New York Cen
trail road, and also that $4,0G0o 600 in
money or property shall be reserved by
the Boston and Albany road
The sum consists of the trust in
funds and property, which had been
laid by for improvements and other
special expenses. If the road is turned
over to the New York Central, it will
not be necessary to apply these funds
to the uses for which they were Or
iginally designed.
This sum of $4,000, 900, invested at the
current rates of interest, would mean
a return of the last one-half of J per
cent additional to the stockholders, so
that the proposition, stated broadly,
is that the stockholders of the Boston
and Albany will derive net dividends
Of 1-2 per cent on their lease.
OF course, this recommendation may
be affected by various after consider
atoms. 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
/, 1900, will find the lease in operation
and the new tenants in control.
In the absence of President Bliss,
Vice President Hayden said at tile
conclusion of the meeting: THE direc-
tors have voted to recommend to the
shareholders a lease of the Boston &
Albany to the New York Central for
period of 999 years, at 8 per cent.
The directors reserve $4,000,00O of prop
erty not necessary to the conduct OF
the road"
Mr. Hayden denied that the Wander
bill interests were unfavorable to the
development of Boston or that the COM
pany had reached the limit of its capa-
city for handling grain. 1t is understood
that the preliminary arrangements for
the lease were arranged by President
Bliss, Vice President Hayden and
Samuel Hoar, counsel for the road and
one of the directors. The origin of the
project dates back months and even
years. 1t was first suggested at an in
formal meeting of representatives of
interests in the New York Central and
Albany roads, and gradually took shape
until an offer was made.
1t is assumed, from the action of the
directors today, that the lease Is as
sured. They have quietly ascertained
the sentiment of some of the heaviest
stockholders, and have been guided by
that To ascertain the wishes of a ma
jority of the stockholders would be quite
a complicated task, however. The hold
ings have been split up into small par
cells and are distributed throughout the
state-nine- tenths of them are, at any
rate 1t Is said that there are 5000 pdo-
pie in this state who have holdings lofl
less than twenty shares each. In many
families the stock has come down from
two or three generations. 1t has been
a favorite investment for trustees.
There seems, however, to be no ques-
ton that the recomme will be
approved by the stockholders. 1t is ex-
pected that the approval Of the state
legislature will also be obtained without
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 a 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 & Albany road.
When the Boston & Worcester, the
Western, the Albany & West Stock
bridge, and the Hudson & Boston were
united, the following section became a
portion of the legislation affecting this
consolidation:
The commonwealth may at any time
purchase of the Boston & Albany rail-
road its road and all its franchises,
property, rights and privileges, by pay
ing therefor such sum as will reimburse
1t to the amount of capital paid in to
the several corporations composing it'll
and to- the Boston & Albany Railroad
Company, with net profit thereon of
10 per cent a year, from the times of
the payment thereof by the stockhold-
ers of said corporations, respectively.
to the time OF purchase"
There has always been a great cues
AApA ~ to Just how much the state