Evening journal., 1910-02-15
ACCEPT LONG
TERM LEASE
Minority Stockholders Of Del
aware R. R. Co. Withdraw
Objection to Project
GREAT IMPROVEMENTS
ON ROAD PROMISED

Special 70 THE EVENING JOURNAL
DOVER, Feb. 1.-THE minority
stockholders Of the Delaware Railroad
| Company here today accepted the
Pennsylvania Railroad Company's
proffer OF a 10 per cent. stock dlvi-
dend and a 20 per cent. special cash
1 dividend in consideration OF the Della
ware Railroad Company executing a
80 year and four months lease Of the
property to the p, B. & w. r. r. Co.
II was one OF the largest meetings in
the history Of the Delaware Railroad
Company, many stockholders being
present from Pennsylvania, Maryland
and Delaware.
George V. Massey general solicitor
Of the Pennsylvania Railroad called the
meeting to order and former Governor
/ Ebe Tunnel was selected as chairman
and X. II. Green, assistant secretary
Of the corporation, was made secretary
of the meeting.
There was q very widespread silence
when Otho Nowland chairman OF the
committee OF minority stockholders,
stated:
I'VE have before us the unique situ-
alton Of a railroad making an offer TO
itself. You all know the Pennsylvania
owns the p. b. g. w; that the r.,
b. e. w. owns a majority Of the stock
Of the Delaware Railroad. In view
of our control OF the moro than nee
essary number Of stock votes to upset
this project, I believe II would be USE
ful even to the Pennsylvania Railroad
to know just how we stand.
"Sihco the meet here on January 13 this
committee on behalf OF the minority has
made diligent effort 10 get a better offer.
We believe that we OF this prosperous com
pany should have a 100 per cent. stock
allotment and continuation OF the old
lease have great confidence in the fu-
ture OF this road, but when We enter into
this agreement. OF course, we are selling
out for one hundred years our right 10
participate in its prosperity.
I'VE have talked II all over. and now
conclude that II wo were to vote against
this plan we would have to wait a good
long time for any further offer from the
company. The property needs improve
ment: the stockholders need considera-
tion for what we have made; however, we
have concluded It would be to all our best
interests 70 vote for this resolution"
Terms Of the Lease.
The new lease 10 be entered into
takes the place Of the present lease
which was executed on May /, 1907,
for 30 years.
The new lease provides for conduct
ing. maintaining and operating the
property by tho lessees at the high
est point of efficiency for a term OF
90 years and fourth months from
March /. 1910.
The lease grants. demises and leases
the railroads OF the said lessor situat-
ed in Delaware and Maryland-Mair
line 90 2-1O miles; Shellpot branch
eS-100; Townsend and Centrevill'
: Branch. "a 99-l00; Chestertown brancl
= 20 52-10O: Nicholson branch, 73l00
Smyrna, / 27-1O0; oxford branch, g.
e 27-iOO; Cambridge, 80 96-100; together
with all the siding, stations, depot'
Il and appurtenances now owned or tina
e may be acquired by tho said lessons
z including the right 10 fix all tolls, rates
o and charges for persons, freights ant
mails.
y The annual rental for all this shall bi
s paid as follows: s4O6 264 I'm half yearly
d installments I'm the way of dividends
Z TO the stockholders; S2031S2 on june
d 2s of each year; $20S,1S2 on December
T 2S Of each year.
y AnNAV ~ q HAVNAntf AAUMNNNAf AhfAA NAN
d first payment, 10 be made on June 2S
II 1910. shall be only SiS5.4Si.25 20 cover
o the four months under which the lease
s will be in effect. All taxes 70 be i'm.
d posed shall be paid by the lessor.
C Tho lessor agrees TO pay all accruinl
8 interest on the S50O,OOO 4 i-2 per cent
- bonds of the original Delaware Rail
3 road Company, and on the 100000
J. per cent bonds Of the Delaware anS
Chesapeake Railroad Company. whicl
issue will become due on February /
i 1912
"a The further sum Of $4,000 is grantel
l. annually by the lessons to cover corpor
ia alton expenses, such as the holding o
N meetings and conducting, as hereto
e fore. the meetings Of the old com
,r pany.
Henry Ridgley and J. Hall Anderson
representing certain minority stock
holders, asked what was to become o
! the Si,a00000 that the Pennsylvani
Railroad Company had made in tn
4. operation Of the property. Mr.. Masse
y. and President John =. Green bot
20 answered by saying that they believe
all the money would be spent in i'm
% provements. although Il would be
re mater for the board Of directors to de
10 eide
r Mr. Ridgley and Mr. Anderson the
~ asked II these promised betterments an
replacement Of station and tracks were
ID be made by a debt incurred by the Dels
,r ware r. r. CO. Tho reply was that unde
IA the terms OF the lease as read the preser
J debt OF $4,000 would have to be reduce
r before additional debt could be contracted
J. II was explained that the debt woul
never exceed $500. 900.
At the close OF the meeting a recess wa
declared TO enable the stockholders 10 vot
by stock on Edward r. Canhys resolu
tlon 20 accept the terms Of tho lease. Dur
ing this recess Mr.. Nowland and Nj
Fearon were asked n they were satisle
!, with the course being taken and replied
~ eve believe It viii work out all right.
:, care you satisfied that the $4,000 ac
Al cumulated In Delaware road earnings wi
D. be spent on new tracks. bridges, station
ur and general Improvement
he I'VE believe that # WILL" they said.