The Birmingham age-herald., 1913-07-14

over par value any offerings ever made
for railroad stock.
With offerings at the rate of 4sO for
Lake Shore stock, the holders of that
stock must look to other advantages of d
pecuniary or influential kind than is to be
discovered in the payment of the regular
dividend of per cent. Sometimes there
have been extra dividends OF course, the
New York Central management would be
glad to secure these various blocks, in the
aggregate of the par value of 100000, but
it is very doubtful whether that company
would be willing to pay at the rate of 500
for the stock.
There will ultimately be adjustment in
time satisfactory to all parties, and there
has bene presumption that already tenta-
tive plans for such adjustment have been
made.
A Great History
quotation of practically 500 for the
stock of a railroad company, and particu-
larly that of the Lake Shore contains the
germs of an extraordinary interesting
railroad history. Some years ago, per-
haps 20, very careful student of railroad
conditions made up his mind after a pro-
found study of the history and the pros
poets of the Lake Shore railroad that its
stock was worth inherently and would in
a short time be quoted as high as 200 a
share. AT that time the market QUOTA
ton was lis. Confident that his judg-
ment was correct, this man bought 5000
shares contemplating holding it until 1t
could be marketed at about 200. There
followed a time of depression, in which
Lake Shore securities shared so that to
save himself the possible loss this man
parted with his 5000 shares. Two or three
years later he looked regretfully upon that
transaction, for he could have sold his
stock, had he then had it in his possess
sion at about 250. and, as he sometimes
says, have made enough to enable him to
retire, for he had no desire to be num-
bered among the very rich men.
Several of the so-called Vanderbilt party
bought Lake Shore stock when it was as
high as $50 and received in exchange
therefore the collateral trust bonds of the
New York Central for which this stock
was security, two to one. That is to
say, the bonds brought interest at SA per
cent so that two bonds yielded per cent,
and this per cent was earned by the div
idend upon the Lake Shore stock Re-
gret was expressed later that larger
blocks of this stock were not then pro-
cured by the so-called Vanderbilt party.
In John NJ. Forbes Day
When John NJ. Forbes brought into CO.
operat ton with his own ability and capital
large amounts of Boston money in the
late forties and early fifties. with which he
was able to take over from the state of
Michigan railroad which, the state had
built from Detroit to Kalamazoo and to
extend that railroad to Chicago. he be-
came the pionere of the trunk line sys-
tens" of later time. This railroad was
the Michigan Central and it was the logic
which Mr.. Forbes discovered in its con-
struetion which induced him to undertake,
and in great measure to accomplish the
beginning of what is now the Burlington
railway system. Mr. Forbes was still
constructing the extension of the Michi-
gan Central from Kalamazoo to the then
little city of Chicago, when he learned that
New York capital was paralleling on the
south side of Lake Erie his Michigan
Central line. This south side railroad, it
was expected, would make connection with
the recently finished Erie railroad at Dun
kirk. n. Y, and therebp establish
through line from Chicago to New York
city and to Boston, for it was expected
that the Erie would be extended across
New England into Boston. Then began
the first of the real railway battles OF
the United States. A great deal of GU
rious strategy honorable enough but of
a kind which Mr.. John NJ Forbes was
master was necessary in order to carry
his railroads through to Chicago before
the railroad built by New York capital
reached that city. Both became known as
the Lake Shore. Intense competition be-