Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-03-23
100000 FOR M. & M.
STEAMSHIP LINE MAKES AN
ADVANTAGEOUS DEAL.

BALTIMORE, March 23.-Mr. Michael
Jenkins, chairman Of the board of directors
Of the Merchants and Miners Transporter
ton Company, returned from New York
last night.
: There was a meeting in that city yester-
day of the Merchants and Miners interests
and those of the New York. New Haven
and Hartford railroad to finally close the
deal by which the Baltimore company Is to
take over the Winsor Steamship Line,
owned by the railroad company. This
line operates between Boston and Phladel-
phia and negotiation for Its absorption by
the Merchants and Miners company have
been pending for some time.
Mr.. Jenkins stated that the contract for
the purchase had been signed and an agree
ment executed by which the New England
Navigation Company agreed to purchase
SoOO,OOO par value Of the capital stock of
the Merchants and Miners company and
to deliver in payment s. 900 900 par value
Of the New York. New Haven and Hartford
railroad stock. The navigation company
is an adjunct of the railroad company, and
operates Its several water lines, including
the .Vinsor line.
To Issue New Stock.
Stockholders of the Merchants and Min
ers company will be called in special meet
Ing to approve this deal They will also
be asked to authorize an issue of s., OOO
of per cent debenture bonds These will
be given In full settlement 1t is understood,
Of the Winsor line, including it's property,
rights, franchises and all that II possesses
for successful operation.
me meeting will also be asked to au-
thorize an Increase of $3.GOO.0GO in the
Merchants and Miners capital stock. OF
this increase $4,000 is to be delivered
to the railroad company in return for the
$2OOO,0OO OF its stock which the Merchants
and Miners Is to receive. This exchange
at once creates community Of interests
as II were. which the promoters of the
consolidation evidently think will be mu-
tually beneficial and profitable.
The stock of this New England road
to come to the Merchants and Miners treas
ury. with the remaining 100000 of its own
stock to be authorized. is to be distributed
to the present stockholders of the Mer-
chants and Miners company.
This means that the stockholders. of the
Merchants and Miners company will re-
tain the shares now owned and will re-
cefve In addition In the nature of q divi-
dend. 100 per cent in New York, New Haven
and Hartford railroad stock, and 25 per cent
i'll Merchants and Miners TRANSPORTATION
Company stock.
The Merchants and Miners stock is to
be deposited with the Safe Deposit and
Trust Company Of Baltimore, trustee, in
trust. with view Of keeping its contract in
Baltimore and of maintaining the steam
ship company as an independent corpora
common carrier.
The present stockholders in the Mer-
chants and Miners company are to name
a majority Of the directors. Under it's
charter the Merchants and Miners COM
pany Is limited to five directors.
The stock Of the railroad company Is
selling on the market at SIG share. and
pays dividends at the rate of per cent
per annum.
The purchase Of the Winsor line is ex-
pected to produce satisfactory results and
make the Merchants and Miners company
stronger and larger Q" III.
Plan Not the One Anticipated.
The payment for the absorbed Winsor
line in debenture per cent bonds is some
what different from that generally antici-
pated in local financial circles 1t was
assumed here that the Merchants and
Miners stock would be exchanged for that
of the sWinsor line on an agreed basis. The
management, however, seems 10 have build
ed more wisely. For the new issue of Mer-
chants and Miners stock proposed they
are to receive in almost equal return the
successful railroad properties in New Eng
land. This corporation will in time take
into its treasury stock of the Merchants
and Miners company, creating In effect
partnership the value of which astute bust
ness men regard highly.
The Merchants and Miners company now
has capital of S2.OO0,O2O. 1t is author
lied to increase this to $6.0C0,O00. Under
the plan to effect this merger it will put
out $3,00a,0C0 additional, leaving $1.00O,00O
still in reserve should more money be
needed.
The Merchants and Miners company
now has a bonded debt of only $aO0,OC0.
This is a first mortgage. These bonds, how
ever, are so closely held that they rarely
appear on the market and would command
a high premium if offered for sale.