New-York tribune., 1912-04-04
.CEN7RAL'S PLAN BLOCKED
D S. Commission ForbidS On
tario & Western Purchase.
WOULD ENDANGER MINORITY
further Expansion, with New
liabilities, Might Hinder Solu-
t;on of Pressing Problems.

.,hany. April S.-The application OF the
vorI Central q Hudson River Rail-
"a Company TO acquire majority OF the
.,. 80 the New York. Ontario & Western
,n-ood Company was denied to-day by
.Ss public Service Commission The ma
u .r .tock is now owned ny the New York.
- Haven & Hartford Railroad Company.
go e pendng before the commission
Indication OF the New Haven for per-
I,,.inn 10 ACQUIRE a majority of the stock
:, ,hs Rutland Railroad Company. now
- nv tho New York Central. The ap-
y ..,,ons were opposed by the minority
P.,hoIdsrs Of The Ontario & Western and
the Rutland.
aarisition of the Ontario e Western would
,sit an entrance into the anthracite helds
:, pennsylvania as well as additional facil-
S.. for transportation out of New York
Cyty The reasons for the denial, as given
by the commission, are:
No transfer of a bare majority interest
go the New Haven TO the Central should
~ nermitted without reasonaoly sudIulns
the minority from possible oppression DS
tbe majority interest No means are APP
,ay.nt VIZ 6y which this can be done except
R~ imnosing as a condition of the authori-
yst;on that the Central shall take over sucn
- the minority stock as may be oHered II
.,,,o VI ny the same terms per share as II pays
UPoH a,y t Haven. If the minority stock
Sniders availed themselves OF this privilege
=. Niora make a purchase price to be paid
=, he Central of substantially s26,OOOoO,
and involve an annual = NsS 4od o66 Snalse ior III
teIsst te5Is,: cc6onn,ission " is unwilling to impose
.bi. burden upon the Central and has had
its attention called to no adVantaSe WhCh
In its Judgment would compensate LOT u!e
d;sadvantages involved in such an invest
ment e., ,o,.o,onr,o,,+ of
,he CAPABILITIES Of the Ontario q western
requires close attention 10 ana cartIil SUP
Of traffic, operating ana hnahcIal coiloi-
tions ..,z.,.,,
II is the clear judgment of the commission
that the energies OF the central ana ltS
credit and resources of every nature shouia
rroperIv be devoted to the public duties ano
mrdens with which ii Is now charged. ana
IN the urgently demanded solution OF the
numerous and complicated problems press
ing upon Il In connection with the proper
growth and development or IT'S existing
properties.
The New Haven owns % shares of the
rreferred stock and 2al,6O0 shares of the
common stock Of the Ontario & Western,
while the Central owns only ten shares of
the preferred stock. The Central asked for
authorization TO purchase all Of the stock
owned by the New Haven, agreeing TO pay
gslOs297 So by issuing its ffty-year debent-
ure bonds for that amount bearing S5S3S32
interest. payable annually The commission
calls attention TO the fact that the New
Haven owns a bare majority of the total
stock issued. namely s29,16i0Oo. as against
a minority interest of $2S, 9S3. the differ
ence being only S2l0,0l7
In deciding the case the commission says
that II took into consideration the protec-
ton Of the rights Of minority stockholders,
the control OF a comparatively small rail
road by great system which is to some
extent competitive, and which has to some
extent intimate traffic relations with IT, pos
sble elimination Of competition by the prac-
teal control and absorption of the compet
ing line and the effect upon the Central
itself, which may be expected from the as
sumption of new responsibilities and Habit
ties