The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-03-19
.R0Ck|NG valley
DEAL CONFIRMED.
.Hawlcy and Trunbull Issue
Statements as to Its
Import.
I ------------>
PRESIDENT STEVENS L re: 81 BACK
Enormous Cash Transaction
Handled BY ]. 7. Morgan &
Co., in New York.
PRESIDENT STEVENS BACK

Handled by Up. Morgan s
Co., in New York.
Negotiations for the control of the
Hooking Valley system by the cilesa-
peakc and Ohio RAILWAY Company were
closed in New York City yesterday af-s az
ternoon slortly before 4 o'clock by
Frank Trunbull and Edwin Hawley.
acting as committee of tho directors
empowered on the previous day TO pre-
pare and sign the necessary papers
which would consummate the deal. AT
o'clock Mr.. Trumbull dictated the fol-
lowing statement for qualifications:
"Oflcial announcement was made this
afternoon of the conclusion Of the deal
for the segregation Of the Hooking
Valley system.
THE Lake Shore and Michigan South
crn buys tho Toledo and Ohio Central
and the GAINESVILLE and Western, and
the Chesapeake and Ohio buys from
the other trunk lines their holdings OF
Hooking Valley stock. and the Lake
shore and the Chcsapeakc and Ohio
acquire jointly the Kanawha and Micli-
igan. formerly owned by the Hooking
Valley. It is understood that the trans
action was a cash one. and settlement
both by the Lake Shore and Ghesa-
peake and Ohio was effected this af-.
ternoon."
President stevens Back.
President George ". Stevens. OF the.
iChcsapeake and Ohio. returned TO
| Richmond yesterday morning. follow-
| ing the directors meeting in New York
on Thursday. Fred w. Scott and James
! II. Dooley, Richmond directors. also re-
turned to Richmond yesterday. Presi-
dent Stevens said last night that he
\ had no statement to make as to the
! pending transaction. as the deal had
not been fully closed when he left New.
York, Messrs, Hawley and Trumhnll
having becn empowered To close the
| transactions on behalf of the Chesapeake
and Ohio.
The official announcer ment fully con-
| firms exclusive articles printed in this
paper during the past three days as to
/. the pending deal and indicates the pur-
pose fof Mr.. Hnwley and his associates
to extend the Chesapeake and Ohio to
Chicago and the Lakes. with the fur
thcr possibility of connections further
to the West with roads in which Mr.
Trumbull and others are largely inter-
ested.
locking Stock TO BE Retired.
1t is und derstood that as a result OF
the deal just closed the preferred stock
tof the Hooking Valley Railroad Com
pany may be retired. Those in a posi-.
tion to have information on the subject
state that it has not yet been positively
decided to do this, but such action is
being considered. There is outstand-
ing S15,o00,0oo of the stock. which, ac-
cordinE to the terms of It's issue, may
be redeemed at par.
This stock has priority over the
, common for non-cumulative dividends
up to per cent. per annum, but when
ever dividends exceed 4 per cent. in any
fiscal year on both classes of5tllc stock.
any further distribution for such year
shall be equally for the benefit Of both
common and preferred stockholders.
Negotiations under way for the sale
| of the Hooking Valley to the Chesa-
| peake and Ohio and of the Toledo and
Ohio Central to the Lake Shore and OF
| the kanawha and Michigan to the
Chesapcake and Ohio and Lake Shore
Jointly have resulted in an agreement
on all the main points at issue, but
some minor details are still under dis
cussion. These. 1t is understood. per-
ltain chiefly to the distribution of traffic
to other roads.
| The Hooking Valley has somc long.
Iterm traffic agreements with other
roads, and an adjustment OF these will
Ihave to be made. No difficulty Is an
|ticipated in arranging these matters in
| q. manner satisfactory to all concerned.
The sale was consummated through
y. Il. Morgan 8 CO.. and the transac-
tion Is said to have involvcdsa large
cash outlay.
What Is Embraced.
The Hooking Valley Railroad is the
successor Of the old Columbus, Hook
1t succeeded after foreclosure in 1899.
In; i 9oS the Hooking Valley sold $6.924,-
200 of Its 81 100000 outstanding COM
mon stock to five other roads. These
We're the Plttsburg, Cincinnati,C Chicago
and st, Louis (Pan Handlc) which ac-
ltquired one-third Of this amount, and
1.-THE Baltimore and Ohio. Chesapea Ike
and Ohio Lake Shore and Michigan
|Southern and the Erie, each Of which
took one sixth Of the remainder
Under the sale contaminated yester-
day the Chesapeake and Ohio takes over
lthe holdings OF the other joint nt4oWners,
acquired almost seven years ago. In
|cluding the {one-s sixth held by tho Lake
Shore and Michigan Southern. The
latter roads interest und r8sthe new
arrangement. therefore. concerns rs only
the subsidiary coHpanie es,
Tho rSanawha and Michigan. Toledo
and Ohio Central and GAINESVILLE and
| West Yves tern roads, with their allled coal
properties, which have been apportion-
ed between the Chesape AXE and Ohio
and Lake Shore and MichiEan South
ern, were formerly par of the Hook
line. Valley system hut in 1909, tho
Ohio courts held such control to 8 be
OF strategic Importance.
se# Chesapeake ana Ohio ottlcials say
lsthatgacquisition Of the IIoolSlng Valley
Iigreatly cnhances the strateg gie8 import-
iance Of their line, as lS
sDirectors Of the Chesa peake and
OHIO have ] ust aut torized an issue OF
sal, l,39 90, 900, Il q per cent, conyertihle
bonds, # These are to- be underwritt on
by q syndlc cate Of internatt ttnnal bank
ers, and The proceeds will presumably
be used IN pa 1T 70 relm burse. tho com !
pany's treas ury for ts Hoe king Il
Hey purchase. I 5S55s h. n ~ a