New-York tribune., 1904-10-31
ONTARIO DEAL CLOSED.
Option Accepted-Means Much to
7c-England.

New-FIaven, Conn. Oct. 3o-It is definitely an
nounced here that the New-YOrk. New Haven and
Hartford Railroad Company. at meeting of its
directors last Wednesday, all but two being pres
ent voted with substantial unanimity TO accept an
option offered by Kuhn. Loeb & Co. on a ma
jority OF the Ontario and Western stock The price
paid is ss5 a share. dividend. and all the ar
rangements for the temporary financing, extending
months. have been made. AT the meet
ing the question OF a lease Of the Ontario and
Western the basis Of IL per cent on the stock
for FIVE years. rising 10 per cent at periods of
five years hereafter. considered. but as IL was
foGnd that this plan required the assent Of the
New-York Central Company. il was dropped. II
Is probable however that the New-York. New
Haven and Hartford Railroad Company will make
provision for the minority holders OF the Ontario
and Western company on a basis representing
about so a share Of stock But whether the New
Haven company will finance the plan by issues of
debentuTe bonds or stock is q matter to be de-
termined by the directors OF that corporation.
BY the purchase the New-Haven company
acquires five hundred miles Of road, of which some
hundred and fifty miles west Of Cornwall, N Y.
is process Of double tracking. The roadbed 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 has trackage rights over the West Shore under
q contract which has about one hundred and sew
enty-fve years 10 run. based on passenger and ton
mileage. The contract also gives very large ter
rn,nal privileges for the period at the West
Shore terminal properties Weehawken-
The most important feature however. OF the deal
is the that for the first time in New England
railroad history 1t gives great New England car
rying corporation access 10 the coal mines the
one hand and TO the Great Lakes the other, and.
by virtue OF the latter extension. the power of
regulating and naming Western trunk line rates.
From OsNego TO Buffalo. a distance of about 40
miles the Ontario and Western traffic agree
rnent with the Rome Water1own and Ogdensburg
Railroad. This contract is not. as iE the OF
the West Shore terminal. permanent one. but by
a new line Buffalo and Niagara, easily construct
ed low grades. the Ontario and Western
readily in the future connect with the Gould sys-
and Ihe Canadian trunk lires.
II ia understood that the New-Haven road was i'm
Inedatey forced take this step by fears lest
trunk lines should endeavor pare down its per-
centages through business 10 and from the West
and elso from fact that last spring IL was de-
feated in q plan OF securing the Lehigh and Hudson
River Railroad connection with the coal fields by
the Intervention OF the trunk and coal line presi-
dents. very important feature Of the plan Is
It will be compelled ere long TO use much more
extensively Than heretofore. anthracite upon its
and carrying its own COAL Of which uses million
sG5oo the New isTe comanT Mil fGS1 OF a9@4t
~. by this arrangement. save about 81 . a ton Il
price of coal TO New-England manufacturing con-
srmers As II will reach many independent
hopes largely TO increase the business of the On
ai4u IN ille coal frsI.lc. thus add
10 me proilts or its business the acquired lands
Tn New-Haven company also looks for consd-
tIabe increase OF its general freight business by
IareeT interchange OF traffic with the Ontario and
WfTss,era; on which IL will have The long haul
western 10 the New Haven Will about $780, OOj a
year or about 81 csns year if The fun amount Of
stock Is taken in The officials New Haven
read say rha, the surplus which the Ontario and
Of nhe additional nxed Aarges aslng nothing Of
aodltlonal profits from Increased business The
taking OF the road viii compel immediate steps for
me double tracking OF the system from the Pough-
keeps!e Bridge 10 New-Haven. and probably of The
Highland DIVISION 49,
IL ts pretty definitely understood that the plan
opposed by the trunk line presidents partly on the
ground OF alleged disturbance OF present conditions
but without effect on the determination Of the New
Haven hoard of directors. II was argued that the
taking OF the Ontario and Western was exactly
analogous 10 the acquisition several years ago OF
the Boston and Albany by the New-York Central