The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1904-10-31
0. Ind v. TAKEN OVER
Consolidated Announces Ac-
ceptance Of Option on
Majority Of the Stock
Of the Road.
Sac A SHARE EX.DlVIDEND
QUESTION or 4 LEASE coNsID-.
Erred AND DROPPED.

Probable ON Basis Representing
About $40 Per share Of stock
Question of Financing the Plan by
Issue of Debenture Ronds or Stock
SHlI Observation-Disclosures Import
ance OF Line to consolidnted--Acces
to Coal Mines and Great Lakes.
Official announcement was made by
the New York, New Haven and Hart
ford railroad in this city last night
that at a meeting Of its directors last
"Wednesday, only two being absent, it
was voted, with substantial unaninlity,
to accept an option offered to Kuhn.
Loeb & Co. on a majority Of the Onta-
rio and western stock. The price paid
is $45 a share ex-dividend. and all ar
rangements for the temporary financ-
bng extending over some months, have
been made. AT the meeting the ques-
tion of a lease of the Ontario and
western on the basis of 1 IL per cent.
ION the stock for five years, rising to
per cent at periods of five years there
after was considered, but as it was
found that this plan required the as-
Ssent Of the New York Central company
it was dropped 1t is probable, how
lever, that the New York, New Haven
and Hartford Railroad company will
hnake provision for the minority
holders of the Ontario and Western
company on a basis representing about
ss$40 per share Of stock. But whether
the New Haven company will finance
the plan by issues Of debenture bonds
or stock is matter to be determined
by the directors of that corporation.
BY the new purchase the New Ha-
ven company acquires about 500 miles
of road, Of which some $50 miles west
of Cornwall, N. Y, is in process of
double tracking. The road bed is, in
excellent condition and the rolling
stock sufficient for present business and
much Of it of an up-to-date standard.
From Cornwall to Weehawken the road
shas trackage rights over the West
Shore road under a contract which has
about 175 years to run based upon
passenger and tonnage mileage. The
contract also gives very large terminal
privileges for the same period at the
West Shore terminal properties at
fWeehawken. The most important feat
lure of the IDEAL" however, is the fact
THAT for the first time in New England
RAILROAD history it gives a great New
England carrying corporation access
Ito the coal mines on the one hand
land to the Great Lakes on the other,
land, by virtue of the latter extension,
THE power Of regulating and naming
western trunk line rates. From Oswe-
go to Buffalo, a distance of about 140
1niles, the Ontario and Western has
traffic agreement with the Rome, Wa
tertown and Ogdensburg railroad. This
contract is not as in the case of the
West Shore terminal, a permanent one
HUT by a new link to Buffalo and Nj
Hagara easily constructed on low grades,
THE Ontario and Western can readily in
the future connect with the Gould
asystem and The Canadian trunk lines.
It is understood that the New Haven
road was Immediately forced to take
this step by fears lest the trunk lines
Should -endeavor to pare down its per-
centages on through business to and
from the west, and also from the fact
that last spring it was defeated in
plan of securing the Lehigh and Hud-
son River railroad connection with the
coal fields by the intervention Of the
HtrunlS and coal line presidents. A very
Important feature Of the plan is that
the New Haven Railroad company feels
THAT it will be compelled ere long to
use much more extensively than here
ftofore anthracite upon it's locomotives,
freight as well as passenger. Mining
and carrying it's own coal, of which it
buses million and a half tons a year
Let present cost of about five million
adollars, the New Haven company will
aprospectively by this arrangement save
3abollt one dollar and tWenty-ffv cents
la ton 1t also expects to be able to re-
aduce considerably the price Of coal to.
lNew England manufacturing consunl-
5ers. AS it will reach out to many in
dependent coal corporations In the an
lthracite regions it hopes largely to Ia
Acrease the business Of the Ontario and
+ Nv GSI6Tu Ill LuG COctl II dlitC anu 8IilQS aQQ
Ito the profits of its business on the ac-
Aquired line. The New Haven company
aalso looks for a considerable Increase
of its general freight business by larg-
Ter interchange of traffic with the On
stario and Western, on which it will have
1.-the long haul"
The immediate cost of acquiring the
4 Ontario and Western to the New Ha-
ven road will be about S460,000 a year,
or about $1,0O0,O00 per year if the full
amount Of stock is taken in. The Of
I fcials of the New Haven road say that
4 the surplus which the Ontario and
4 western is at present earning will fully
4 take care Of the additional fixed
charges, saying nothing of additional
profits from increased business. The
Z taking OF the road will compel imme-
diate steps for the double tracking Of
the system from Poughkeepsie bridge