Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-03-07
CONTROLLED. AFFILIATED AND LEASED
COMPANIES.

Many minority stockholders Of the Northern
Central Railway Company representing substan-
tlal holdings. requested your Company TO con-
slider whether a more. permanent operating ar
rangement lease OF its property to the Penn
sylvania Railroad Company could he made on
basis equitable to all interests. and special
committee OF the Board Of the former Company.
and also minority Stockholders' Committee.
were appointed TO consider the subject. After a
careful analysis and study OF the whole situation
these Committees united In Recommendation
that the lease of the railroad. franchises equip
ment and all other property OF the Northern
Central Railway Company be made to the Penn
sylvania Railroad Company for 900 years from
basis; ia) A rental, Of 8 per cent. payable on
the outstanding capital stock OF the Company
stock dividend: (b) the payment of a 10 per
cent. cash dividend on the present stock: tc) q
further sum sufficient to preserve and MAINTAIN ,
zation: ID the Lessee to also pay all nxed
charges and taxes. The proposed lease stating
in detail the full terms and conditions Was after
due approval by the Boards of Directors Of the
respective Companies. submitted to the stock
holders OF the Northern Central Railway Com
pany, and approved by the vote and consent or
shareholders representing over eS per cent OF
cent. Of shares owned by others than the Penn.
sylvania Railroad Company. The lease. snd
CONSEQUENT increase Of capital STOCK are M nov
land for its approval required by law. Upon
such approval the lease could become effective.
satisfied minority stockholders, one in the
United States Circuit Court of the District 81
ad Of n
Company by action OF it's Board Of Directors.
has deemed II prudent to declare that II shall
not be required TO execute and effectuate the
said lease. IL approved by the Public SeSvtcc
Commission OF Maryland, or to take possession
of the railway and property Of the Northern
Central Railway Company. until each OF the
two suits against the latter Company and the
Pennsylvania Railroad Company shall he adjudi-
Gated, or until your Company Is advised by
Counsel that It In proper TO consummate the
same prior to such adjudication. The Northern
Dnflr hnC haas q ~
with your Company for almost fifty years. and In
that time has had the benefit OF the rpest ex-
perence i'm railroad operation and management
which your Company could give IT, and although
several previous attempts TO lease that property
to the Pennsylvania Railroad Company were
among the Northern Central Railway stock
holders it was believed that the time bad come
when It was desirable and proper for your Com
pany to consider a lease. Both Companies by
reason Of this long afiiiation. their mutual
trackage agreements. and terminal grants. have
other and the Northern Central Railway Oom-
pany being dependent upon the tradhc inter
changed with your system for about S5 per cent
OF its gross revenues. II Is evident that a lease
is a natural result, and the closer operating
relationship which Will be thereby effected can
not fail to be beneficial to the Companies ana
to the territory served by the Northern Central
Lines. This opinion Is fully justified by NE
unanimous consent and action OF the holders or
substantial majority OF the minority shares Of
that Company. without which this Company de-
clined to even consider the lease. The PURPOSE
OF your Company and the action Of your Board
I'm connection with the FOREGOING lease, Is now
reported, with the other matters in this report.
for the approval and confirmation OF the stock.
holders.