The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-12-30


not be prevailed upon to part with
their Lake Shore stock. Among these
were his brOther-in-law, the late n
Mex. TwOmbley, who held, according
to fairly reliable information. thous
and shares of Lake Shore stock, and
it was suspected a good deal more
Close as Mr.. TWombley's relations
We're with the New York Central COM
pany he preferred, for some reason
known only to himself, to keep his
Lake Shore stock
So. also, a considerable number of
minority stockholders declined to part
with their stock Naturally enough.
the suspicion has prevailed that these
minority stockholders expected that
the dividends upon Lake Shore stock
would be earned and maintained at a
higher rate than per cent. That sum
represented the income produced by
the securities with which the New
York Central bought the Lake Shore
stock The suspicion was confirmed.
Lake Shore stock has been paying 10
per cent So that with that sum the
New York Central has been able to pay
the Z per cent interest charges upon
the bonds and gain for its treasury 3
per cent of that interest.
Its Great Earnings.
The expectation is strong that the
figures telling the aggregate gross and
net earnings of the Lake Shore Rail
road company for the year 1911 will
show that these earnings have been
approximately 20 per cent upon the
capital And it is undoubtedly in no
small measure the demonstration of
the great earning capacity of the Lake
Shore, as we'll as the presumption that
this capacity viii be maintained and
even increased, which juStifies the
New York Central management in now
seeking completely to absorb the sys-
tenn
That. however, is not the sole rea-
SON Consolidation, unificatiOn of all
q ST hvTt 10
Vanderbilt name, is thought to be the
purpose of the New York Central
management That purpose has been
acknowledged so far as New York
state is concerned and if the public
service commission permits this unfit
cation. that will probably be cOnsum-
mated. so far as New York state is
concerned, In the year 1872 There
are strong economic and managerial
reasons which justify. in the opinion of
the management. ultimate consolida-
ton of the Vanderbilt systems. Wheth-
er that will mean, by and by. the con-
solidation of the Big Four with the
New York Central renal s to be dis
closed It is inevitable that If the con-
solidation of the New York Central
with the Lake Shore is accomplished a
like consolidation of the New York
Central and Michigan Central and
Canada Southern Will also be per
fected
Big Concerns in Study
tions in New York City, including one
of the greatest of the life insurance
corporations. are owners of large
blocks Of the Lake Shore stock. The
managers of these institutions are now
earnestly considering whether it would
be expedient for them to accept the
propositions set forth in the circular
ISSUED by the New FORK Central relat-
ing TO the absorption by the Central
of the Lake shore railroad The pres
ent disposition very strongly sets in
favor of keeping these blocks of stock,
and yet there can be no doubt that Ill
timately the stock of the Lake Shore
railroad will be com pleeely absorbed
by the New York Central The Incl
dent is of especial interest at this time
because public sentiment has seemed
to set so strongly against expanding
or centralizing into one control vari-
ception of the Michigan Central and
the Lake Shore system it can not rea-
soGably be claimed that the CentralS
purpose is anita gOniStic to the principle
that parallel and competing railroads
should not be unified and come under
one management and financial control.
An incident of 1911.
Not the least instructive and i'm
portant of the larger incidents which
will by tradition characte the year
1911 is the very marked beginning
which the United States has made as
a world power in a special field OF fin
ance- We began some L years ago to
participate In the financing OF the ma
tiOnal loans. and it was spoken of as
a very great achievement in the first
four or five years of the present CEN
fury that the United States should
have participated to the extent of a
hundred millions in the floating of
loans behind which was the credit or
sovereignty a foreign nation Some
critics said that this figure was in
intestinal IN comparison with the in
vestrneuI Of British or Of French Capi-