New-York tribune., 1911-12-09
N.Y.C. TO PAY S13,1O8,39S
viii Issue Bonds for That Sum
for Ontario & Western.
TELLS NEED OF NEW LINE
In Petition to Public Service
Commission Says 1t Would
Have Access to Coal Fields.

The New York Central will pay the New
York. New Haven & Hartford SlS,loS,SSS for
the latter's controlling stock in the New
York Ontario & Western Railway Com
pany. which is about what II cost the New
Haven IN 1904. The par value Of the stock
IS S2a.1S0,0oo
The terms Of the transaction were made
public yesterday by the Public Service
Commission Of the "a District, 10 which
the New York Central applied for permis-
sion TO purchase the New York Ontario q
Western stock from the New Haven road.
In its petition TO the commission the Cen
tral asks permission TO issue SS,lOS,S9S hity-
year debenture bonds to pay for the STOCK
which IT says 1t has agreed TO purchase
from the New Haven company. AS rea-
son for wishing 10 acquire control or the
New York, Ontario & Western the petition
says that the business now being done by
the Central over the West Shore Railroad
between Oneida and Cornwall is very
heavy and has been increasing constantly
during the last few years. and It will be
possible TO send a part Of that business
over the line of the Ontario & Western be-
tween those points and thus increase the
efficiency Of the service and at the same
time relieve the congestion on the part OF
the West Shore.
II also points out that the Ontario &
Western reaches the Pennsylvania coal
helds and its coal traffic furnishes ap-
proximately 60 per cent OF its entire freight
revenue, and that the Central at present
has no line which reaches the anthracite
coal fields. but is dependent on other rail-
roads for such anthracite coal business as
81 carries over its lines. Because Of these
facts, and the further reason that the lines
OF the Ontario & Western are supple
mental 20 those Of the Central the COM
mission Is asked TO grant the petition.
The debenture bonds that the Central
requests permission to issue in payment
for the New Haven's Ontario & Western
stock constitutes a new issue. The petition
does not state the rate Of interest the new
bonds will bear, but says that the annual
interest charge on them will be S5S3,3S2,
which would be at the rate Of approx
pately AS per cent a year. 1t is supposed
that this rather unusual rate Of interest on
the bonds is made so that the market value
Of the entire issue will be about what the
New Haven paid for It's Ontario & Western
stock This was SIS a share for the 29L6OO
The petition does not disclose whether or
not the Central is to turn over to the New
Haven its remaining half interst in the
Rutland Railroad as part Of the deal. but
St is generally believed in railroad circles
that such is the case.
In its application to the Public Service
Commission the Central also asks permis-
sion TO acquire the whole or part Of the
outstanding 100000 stock Of the New
York & Harlem Railroad, which 1t now
operates under lease. To pay for this stock
which is to be taken over at S5o or $40 for
each so share. the Central asks the author
ftv OF the commission to use S5,cnGO of the
100000 still on hand from the proceeds
OF the three-year notes sold last March
From this It would appear that the Central
does not contemplate purchasing all Of the
New York & Harlem stock at this time as
10 do so at the price mentioned would re-
quire an outlay Of $35,oOOc0