New-York tribune., 1907-06-07
n. 7. C. PLANS BIG DEAL.
WANTS CONTROL OF d. &H.
Negotiations Bet1cecn Interests 4re
already Under Way.


by The Tribune, the Delaware & Hudson Com
pany will soon pass to the control Of the New
York Central & Hudson River Railroad 1t is
understood In well informed Wall Street quar-
ters mat negotiations already have begun be-
tween the New York Central, and some of the
chieI interests in the Delaware & Hudson for
transfer of Delaware & Hudson stock to the
New York Central In exchange for stock of the
latter company and IT Is said the general plan
Tor the merger Will involve an offer on the ps ri
OF the New York Central to all Delaware &
Hudson stockholders for an exchange of stock
on basis that will return to the Delaware &
hudson holders a dividend income equal to
that which they are receiving at present In the
last two years a large amount of Delaware &
ffudson stock has been concentrated in the
hands Of banking interests IN Wall Street who
nave bought tn esecurties in expectation of
turning them over TO the Vanderbilt road
SiE months or more ago the New York New
maven d Hartford Railroad made an effort TO
get control OF the Delaware & Hudson, but was
persuaded TO cease the operation by the Van
deroilt interests. who, It is learned threatened
10 puy up the Boston & Maine which is to be-
come a part of the New Haven system Tho
Ne" haven and New York Central people made
an arrangement by which the former would tak.
over the Boston & Maine and the New Yorl,
ware & Hudson. while the New Haven also
gave 10 the New York Central an option on i+s
New York. Ontario & Western stock at tho
same price It paid for II two years ago The
ne" York Central and interests identified with
'he company have obtained a considerable
amount OF Delaware & Hudson stock in tho
last few months in addition to that alread,,
owned. and It Is quite probable the so-called
First National Bank interest in the Delaware &,
Hudson property will be willing to turn over its
holdings IN that company 10 the New York
Central.
BIG COAL HOLDINGS INCLUDED
In obtaining control Of the Delaware G. Hud-
son the New York Central will become one Of
the leading factors IN the anthracite coal busi-
ness, and If it decides 10 exercise Its option on
the New York, Ontario & Western stock its DO
sition in the hard coal trade Will be second only
to that of the Reading. For q number of years
the Vanderbilts have had their eyes on the
Delaware & Hudson Company and through
their ownership of a certain amount Of Della
ware & Hudson stock have been influential fac
tors in the development Of the property The
two companies always have worked in harmony
and are IN way competing lines Tho New
York Central uses the Delaware e. Hudson
tracks for its Montreal business. and the two
companies own jointly the so-caed belt line
between Albany and Troy; also the Schenectady
Railway. The Vanderbilt interests are rep
resented on the Delaware & Hudson directorate
by Chauncey NJ. Depew and 1t is understood
the large stock holdings in the name Of II. y.
Whitney & Son. amounting 20 about 10000
shares, belong TO Vanderbilt interests. Marcus
Mayer & Co and Marcus Mayer individually
are the largest stockholders in the Delaware &
Hudson Company. part of their holdings rep
resenting First National Bank interests. The
First National Bank and Marcus Mayer went
into the Delaware & Hudson as an investment
proposition. and they believe that the property
is so valuable that the New York Central VIII
have TO pay bis price 10 get control
The Delaware & Hudson Company char
tered in 1923 as the Delaware & Hudson Canal
Company it's title Being changed. TO the Della
ware & Hudson Company in 1899. The company
owns 14S miles: it holds nnder lease 632 miles
and operates a total of S42 miles. The leased
lines include the Albany r Susquehanna. the
Rensselaer, & Saratoga Railroad, the Chateaugay
& Lake Placid Railway, the Cooperstown &
Valley Railroad, the New York &
Canada Railroad and the Adirondack Railway.
In 1905 the Quebec Southern Railway and the
South Shore Railway were bought in the inter
ests of the Delaware & Hudson. The company
has an authorized capital stock of $57,OOoOOU
Of which about S50000,O0O is outstanding.
CENTRALs INTERESTS IN b. & NJ.
The New York Central owns 5.74S shares Of
Boston & Maine stock. and the Boston & Maine
will sell to the New York Central Its New York
Ontario g. Western holdings at $40 a share, or a
total Of $13 $4,000. amount which will be
offset to a small extent by the transfer Of the
Centrars Boston & Maine holdings 10 the New
Haven. The New York. Ontario Western has
trackage rights over the West Shore between
and Weehawken, which do not expire
until the year 2O70, and its line meets the Della
ware e. Hudson at Sidney, N Y, and extends
into the coal fields at Scranton. The Delaware
& Hudson runs into the coal fields by way OF
The obtaining of a dominant interest in the
Boston & Maine Railroad by the New York,
New Haven & Hartford puts that company in
practical control of transportation properties
having gross earnings of approximately $l5O,-
600 900 year and such makes II rank with
the great railroad combinations Of the United
the Pennsylvania, the New York
Central the Hartman system and the Hill sys-
tenn.
There is this difference. however. In the
PENNSYLVANIA and Vanderbilt systems the par
ent cornrany as in the case Of the New Haven,
consists of a relatively small company, sur
rounded by scores of separate companies fire.
QueQtly operated lilucptIlucIlliS' Will HO piOS-
meet now OF any change. The policy OF the
New Haven management appears to make for
the solidifcation of all the underlying com
NAMES with the parent system. Thus, in the
last few years. the old Kew England Railroad
and the Boston & New York Air Line have been
completely merged with the New Haven. Sim
ilarly the Old Colony Steamboat Company was
merged with the New England Navigation, and
various trolley properties were merged with the