The Birmingham age-herald., 1914-04-21

ooooeo of New York city bonds and recent successes in the offering of other high grade railroad securities do no fully bear out this statement. Capital seems to be willing. even glad. to make investment In hish-grade securities. although it exacts larger profits than it does from the state "r municipality.
 An Old Story
 As interesting a feature of the finan- cial situation as any which is noticeab ble at the present time is the relation of the New York Central Railroad company 10 those who possess the minority shares of the Lake Shore. Michigan Central and Michigan Southern Railroad company. Ii is not an unaceustomed feature It is one with which the recent management of the New York Central has had several experiences Some years ago there was a considerable minority holding in the cap. ital stock of the Harlem Railroad com pany. The Vanderbilts or, what is the same thing, tie New York Central, were anxious to secure the entire capital stock There had been refinancing of early ob- legations of the Harlem railroad, to which a minority of the stockholders took .,x- ception, and some arrangement was made with them which was satisfactory.
 Presumably the minority stockholders of the Harlem reached a satisfactory agree. ihtiA Mitl tilG NGW 1OIk central 1all- road company, for no longer are there in- timations that litigation will be re- sorted to.
 When the late William H. Vanderbilt was under the financial leadership of the late ]. r. Morgan. attempting to secure absolute control of the West Shore Rail. road company and at last seeming to have done so, a wealthy citizen of Syra- cuse who had taken some active part in hf Ia,. tt.. West Shore Railroad company. Uprr those shares he stood determining to ex- act from MT. Vanderbilt terms that would be satisfactory to himself Ht was we'll within his rights and he aid not yield his right and his ownership until he obtained the terms which he asked, and the presumption was strong that he realized handsomely upon this venture
 Now minority holders of the capital stock of the Lake Shore company have within a few days learned that nearly so per cent of the capital stock of that company, which is the collateral security for certain bonds issued by the New Yorl, Central to pay for this stock consents to the absorption of the Lake Shore. These holders are understood to demand that they be paid the appraised value of thei. stocks. These minority holders do not consent, and will not until their demands are met. The appraisal, they say, is $l23l share. Only s4,177,0o0 of the money value of the Lake Shore total capitalization is in the ownership of any others than the New York Central Railroad company The New York Central owns, in round numbers, 100000 of the total capitaliza. ton.
 It has been common report for some years that some of the minority holders have been offered as much as $500 a share It is the general understanding that some who are in intimate personal as well as business relations with MT. Vanderbilt held a considerable block of Lake Shore stock which they declined to part with unless they were paid more than $500 a share. Presumably the New York Cen. tral would regard 1t as impracticable from a business point of view to pay anything like 5000 share for this minority stock Moreover, the understanding is that the minority stockholders want cash. They are not willing to accept any kind oi bonded obligations in exchange for their shares.
 Until this friction is removed there seems to be a good deal of doubt about the ability of the New York Central com pletely to absorb the Lake Shore Railroad company, although there Is no doubt that ultimately the Lake Shore will lose 'ts identity completely exactly as the Wesl Shore did some 30 years ago.