The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1909-01-17
TROLLEY RAILROADS
TO FORM MERGER
Great System to Be Created
In New York State.
PLAN EXPLAINED IN DETAIL
Steps Taken to Concentrate Man
agement OF Several Independent
Properties I'm One Operating Com
pany-WIfI BE Called New York
State RaiIways-Sew stock Issues.

Electric railway companies, like steam
railroads. are passing through a period
Of consolidation inso systems, with the
attendant pooling OF assets and capital
ization on an enlarged scale AT the
present rate OF progress The intraurban
lines viii shortly be as thoroughly
blanketed with mortgage Indebtedness
and large stock output as the Union
Pacific, Reading. and New York Central
/ Commenting upon the proposed merger
Of trolley lines in New York State, which
was ratified at the meetings Of stock
holders recently, the Wall Street SUM-
mary says:
Meetings OF the stockholders OF the
Rochester Railway Company. Rochester
and SOdUs Bay Railway Company, and
the Rochester and Eastern Rapid Rail-
way Company. have been called for jan
uary IS to ratlfy the consolidation agree
| ment between these companies. The new
company viii be named the New York
State Railways.
Commission Sanctions Merger.
The plan has the sanction OF the public
service commission Of the Second district,
and. as the New York Central and the
Central Railway Syndicate are the prln-
ciQal stockholders. there is no doubt that
the plan VIII be carried through
This step is taken BY the large owners
OF the various properties with the view
/ Of concentrating the management under
one operating company as preliminary
/ TO the diversion Of a large part Of the
New York CentraTs upstate interUTban
/ passenger traffic 10 the electric Enes. thus
I leaving the main track Of the New York
/ Central free for the development OF its
/ freight and heavy through passenger
| traffic
! The arrangement should be mutually
/ advantageous 10 the steam roads and
/ the electric roads secUrity-holders. as Il
/ viii permit economies in operation by the
/ former. while the latter viii benefit BY
an increased trafhc.
I Capital of New Corporation.
The amount Of the capital OF the new
corporation is the aggregate OF the capital
/ OF the three consolidating companies. a.
I 1889 This IS divided into s. 50 80 first
preferred. SL5oo.ooo second preferred. and
/ Si4TG,700 common. The first preferred
stock VIII be issued in exchange for the
preferred stock Of the Rochester Railway
I Company on the basis q SlJ750 Of the
I former far each 500 Of the latter. and
/ for the preferred stock OF the Rochester
and S0dus Bay Railway Company on
/ the basis Of 81 for slo0 Of the latter.
The second preferred viii be issued IN
/ exchange for each share % the common
stock OF the Rochester Railway Company.
[ 20 the amount OF $50 making Jde
/ amount OF second preferred as above
stated. Common Will be issued in eX-
( change fO- az the common STOCK OF the
! Rochester and Sodus Bay Railway Com
psny, and all Of the stock OF the Roches-
/ ter and Eastern Rapid -...lway Company.
Preferred to Draw Per Cent.
The first preferred stock will be en-
titled to receive dividends at the rate OF
Is per cent. payable quarterly. such divi-
dends 70 be cumulative and 10 BE- first
/ preferred both as 10 principal and divi-
dends, with adequate provision that no
/ dividends shall be paid on the second pre-
ferTed stock or the common stock until all
/ dividends accrued on the first preferred
SlDLh nave brtI LolAs Win LAELlEr pro-
vision that the first preferred stock may
/ be increased only with the consent Of the
I holders OF two-thirds Of the first pre-
! ferred stock issued and outstanding. and
/ II so increased. that the then owners
/ Of first preferred shall have the right
10 take their respective and proportion
I ate shares OF such increased stock The
/ first preferred stock viii be redeemable AT
the option OF the company, al 10 upon
/ any dividend day after thirty days pre-
vious notice 90 stockholders
( Further provision Is made that. except
with the consent Of the holders OF two
| thirds CT the said first preferred stock. the
bond issue Of the consolidated company
shall not exceed SS5.00o000. and that no
! part OF such bond issue exceeding 80
! 000 600, except for refunding existing mort
I gage bonds. shall be issued unless the net
l income OF the consolidated corporation
shall. after deducting all charges plus
the interest on any additional bonds that
I il may be desired 20 issue annually. have
equaled at least one and One-half times
the amount of the dividend charge on
such first preferred stock in each Of the
two years Immediately preceding the IS
sue Of such additional bonds
The Rochester and Eastern.
The Rochester and Eastern Railway
Company recently increased its capital
stock from s1,509,00O 20 SIS, 90, 200. This
company owns. besides additional stock
purchased OF the New York Central and
the Central Railway Syndicate, % per
| cent Of the $4,000 stock Of the Science
tady Railway Company, ali the S7.5OO.O00
stock Of the Utica and Mohawk Valley
Railway Company; S6.I3 per cent Of the
81, go. zoo stock Of the Oneida Railway
/ Company; 57.94 per cent Of the s.. 81, 800
stock Of the Syracuse Rapid Transit Rail
way Company. This stock VIII therefore
pass 10 the new company on the con-
summation Of the consolidation.
As the New York Central and the Cen
trail Railway Syndicate owned all the
common stock. S1.100.O00. OF the Rochester
and SOdUs Bay Railway Company. and
all the stock. $l5,290 200. Of the Rochester
and Eastern Rapid Railway Company, for
which the common stock OF the new
company IS TO be exchanged, the New
York Central interests will control alb
solutely the new electric railway com
pany. On the other hand, the first pre-
ferred stock of the new company viii
have back Of it the entire investment OF
these interests
Will ExtinguIsh Old Stock.
It further is planned to extinguish the
capital stock OF the Oneida Railway Com
pany, and the Utica and Mohawk Valley
rATES.