Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-01-28

out, that a long time has been devoted to
preliminaries-but there are involved such
issues, such consequences, that 1t would
be grave error to have disclosure mace
inopportunely. Still, so Tar progressed
are some of the plans and 50 generally
understood are some of the involved pro-
posals, 1t Is hardly possible that the news
can be long suppressed. Announcement
Of q transaction Of such size and compre-
hensiveness could hardly fail to serve as
a great market invigoratOr If timed sa-
gacioslsly-a detail which evidently those
who are most powerful In the undertaking
do not propose to overlook.
European News Disturbing.
European news is not helpful. New in
transitional snarls are disturbing. The
European investor seems to have taken
fright In France, for example, the big
gest banking houses get a cold reception
for any offer which is outside Of France
own boundaries-and this means much to
professional borrowing outsiders like Rus
eia.
Germany. meantime, Is industrially en-
barrassed English investors have been
in the dumps a long time. Fl isn't only
in America that outsiders are raising
howls about the intruding wickedness OF
politicians Great Britain has a new
trouble whose influence reaches here
distinctly-the probability OF q stupen-
dous coal strike. This. Of course. means
more than paralysis Of her coal trade
quence-or the important consequence.
at least-may be commercially advan-
tageous-for with English mining sus-
pended there is probability that difiicui-
ties In our coal trade can be more read
lily settled, the English market opening
to our output This is already clearly
enough indicated to have persuaded IN
terests here that our own Threatening
coal labor snarls ought to be dtplomat-
cally moothed out. This Is by no means
Of compromise Is undoubtedly at work In
the situation, and 1t may be that Brit
ish woe will work to large American
profit.
Activity Of Railroads.
financial situation having to do with the
affairs Of some Of our biggest eastern
railways which will be found far out Of
the ordinary. There have been develop
ments and expansions In important quar-
tiers beyond what has at any time been
openly suggested or even in Wall street
suspected. The New York Central. Tor
example, has in view-meaning In actual
course Of arrangements program ex-
ceptionally comprehensive. Though no
hint has SO far leaked out, 1t can be
counted upon that the vanderbilt Sys-
TENS future will be affected by extern
sive fiscal operations In which Lake
Shore will conspicuously figure. When
a dozen years ago Lake Shores $5O.OOO.-
600 capital stock was taken into the
New York Central treasury on the basis
OF IAN, exchange Of 500 in New York
Central 81 per cent collateral bonds In
exchange for 500 Of Lake Shore stock,
there was vigorous criticism OF the trans
action on the ground that the New York
Central wes making an overpayment-
dends. while not infrequently in previous
years 1t had hardly been able to Justify
per cent. In 1898, indeed, the Z per
cent dividend paid called for $3.463.000
with net income $4,023,000. leaving a
balance Of 100000. In 1907 the divi
dend rose to II per cent, $685.. 900. viz
tually all going to the New York Gen.
trai which that year Roi a. o5 per cent
q balance Of sass 900. The Centraps
margin in 1908. after receiving IL per
cent on its Lake Shore holdings, foil
below $145.000 In 1910 and 1911 the
Lake Shore rate rose to Is per cent
three times the amount paid in 1898.
when the arranEements were started
exchange for Central bonds Thus
show two facts clearly and significant
ly. First. the stupendous expansion In
Lake Shores good fortunes, q net In
come Of barely over 14.O0e.000 In 1898
having since risen to approximately
SIS. 900. 900. Original critics OF New
York Centrars purchase Of the Lake
ing applause. But similarly obvious
10 tho other fact that the figures show
fha fact that but for the benevolent
assimilation Of 1888 New York COutral