New-York tribune., 1912-01-27
MAY INCREASE ITS STOCK
LackaWanna Will Submit Plan at
the Annual Meeting.
SHARES ADVANCE 10 POINTS
New Capital To Be Spent in
Shortening the Line-Lease
Project Also Up.

The stockholders OF the Delaware
1ackwanna & Western Railroad Com
nany WILL at the annual meeting on Feb
mary 90 act on a proposition TO increase
tho capital stock from s3O,277. 900 TO 81, ,277,-
on Thn proceeds Of the new stock will
he used I'm improvement Of the main line
between Scranton and Binghamton, the
chief features of this projected betterment
,sork being the construction OF a cutoff
which will shorten by several miles a
niece OF road now far from straight. which
is abotit thirty-1ve miles in length.
The stockholders at the annual meeting
also will be asked 10 ratify proposal for
the leasing Of the Syracuse, Binghamton
& New York Railroad Company. the terms
OF which have been agreed upon by the
directors of the two roads.
The Syracuse. Binghamton e. New York
Railroad has s2,5OOOOO capital stock, Of
which S2063SoO is owned by the Delaware.
I.ackawanna & Western. Dividends of s
Der cent year were paid on its stock
from ls08 TO 1909, when the rate was raised
20 70 per cent. II is proposed to lease the
Syracuse road. which is double tracked
for thirty-two of its eighty-one miles, ana
which connects at Binghamton with the
Iackawanna. in perpetuity to the latter
reBd At a guaranteed rental of l2 per
cent year.
A month ago the Lackawanna opened
for traffic a new 2Si2-mile cutoff between
Lake Hopatcong and the Delaware Water
Gap by which the distance between New
York and Buffalo was shortened by eleven
miles The short line was built by the
Lackawanna Railroad Company of New
Jersey. organized in 1908 for the purpose
by the Delaware, Lackawanna & Western,
and the cost of the improvement nearly
sl2,00O 600. was paid for out Of the cur
rent earnings of the parent company. The
stock Of the New Jersey company was
Increased from SsU0.0OO TO $l1, 10000 on
November s. 1911, and the next day the
Isckawanna announced stock dividend
&C Sj per cent, payable in stock OF the sub
sffiary, and representing about $l05O0.O00 OF
tie latter's $11,o00OoO guaranteed per cent
stock.
The extensive programme of line rectfi-
cation now decided upon will not be paid
for out OF earnings Of the Delaware,
Lackawanna & Western. but its cost viii!
be represented by the addition of $1,000, 600
TO the capital stock. The terms on which
the shareholders will be asked to subscribe
for the new stock have not yet been de-
cided upon, but IT is commonly assumed
that there will be valuable rights" as
Lackawanna is now selling at not much
under its record price, the closing sale yes
terday, when the transactions were unusu-
ally heavy for this ordinarily inactive IS
sue, having been at $50, a net advance for
the day Of 10 points.
For many years the stock of the Della
ware, Lackawanna & Western was S9520n
Go, and the first increase came in 1900
when 10 per cent stock dividend was de-
clared. the new total being $S0277 900. The
new stock represented an exchange. share
for share, of the capital stocks Of two SUBJ
salaries which had been absorbed by the
Lackawanna, and also shares equal in to-
tai amount &c bond issue which the
Lackawanna had recently paid off.
The old stock was then selling at ESQ, and
the value Of the is per cent stock dividend
figured out as little more than S44 q
fbaIR, or 50 points. Lackawanna being
! "Haat1stock'
At the same time the Lackawanna de-
Clared special cash dividend of 80 per
cent, Of which one-half, or s6.So0O00. was
paid its stockholders in cash, and they re-
ceived the option to take the other % per
cent also in cash, or 10 use it in subscro-
ing at par for the S6.sOO,OOO stock of tine
newly formed. Delaware. Lackawanna &
Western Coal Company. The Lackawanna
in 1910 and 1911 paid % per cent dividends
year. 10 peT cent regular and 10 per cent
extra in December