The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-14
DENIES A MONOPOLY
IN CENTRAL MERGER
President Smith Replies in AZ
fidavit to Lake Shore
Charges.
BOOKS OPEN TO MINORITY
All Stockholders to Profit
Through Union of Com
panies, He Says.
BOOKS OPEN TO MINORITY

Alfred II. Smith. president Of tho New
York Central and Hudson River Railroad
In an affidavlt filed in the United states
DISTRICT Court yesterday denied that
tho proposed merger OF the Central with
the Lake Shore and Michigan Southern
Railway Company Is merely paving the
way for a subsequent absorption of the
Lake Shore and Michigan Central Rail-
way Company and the ultimate nonopoiI-
zaton of traffic between this city and
Buffalo.
Such an assertion. Mr.. Smith says
is due to the mislnformation Of the
minority stockholders Of the Lake Shore
and Michigan Southern who recently filed
suit In the United States Distric, Cour,
to prevent tho consolidation OF the road
with the Central While seeking TO com
bine these two roads for tho good Of
the stockholders In both. MIR. Smith says.
the directors, who are Identical In both
roads, have no idea Of ever absorbing the
Lake Shore ana Michigan Central. which
they now hold under a 900 year lease.
Mr.. Smiths affidavit was iiled in op-
position 70 tho request Of the Lake Shore
minority stockholders that the Fedaral
courts Issue q temporary order restrain
ing the merger with tho Central until
their suit has been settled
Ths afhdavtt also denies the assertion
Of the plaintiffs that tho Lnhs ehore
company. At tho dictation Of the Central.
kept It's minority stocyholders In isno-
rance OF the actual earnings OF tho road 90
that they would not object to the merger.
Full Acoess to Recorda
ION tho contrary" says Mr.. Smith. 4
am Informed and believe that the records
OF the Lake Shore have for years been
kept In accordance with the rules OF the
Interstate Commerce Commission Tho
minority stockholders more than q year
ago. at their own request, were given
full access to all the records OF the Lake
Shore company"
As TO the allegation of the plaintiffs
that tho combination. under tho name
OF the Central. would be unjust because
the name OF the Lake Shore carries with
II more value In the way OF traffic, trade
and good will" Mr.. Smith says:
1T is hardly correct to state that the
name Ia of greater value than the New
York Central, because Il In by the name
Of tho New York Central that the sys-
tenn OF which tho Lake Shore IN part
Is generally known"
Mr.. Smith holds that the consolidation
will result in a saving OF more than $780,
w" W hrVouHllts tilu operating expenses
and Federal taxes alone.
Mr.. Smith says that one OF tho objects
of the consolidation is not. as stated.
10 reimburse the Central for the enormous
amount OF money expended In the build
ing OF the new terminal. But. he save.
this terminal will be OF great benefit 70
the Lake Shore.
1t is alleged IN tho minority stock
holders suit that the income of tho Lake
Shore and Michigan Southern IL in ex-
cess OF that OF the Central and that
It is increasing year by year. In sup
port OF these allegations Melville Thomp-
con. specialist IN railway accounting.
submitted an AFFIDAVIT saying that he
had examined the Lake shore books ana
had found that the income OF the road
was In excess OF the published figures.
He said that the Lake Shore stock was
worth at least seven and one-third
shares In the consolidated company, in
stead OF the Ave shares that were to be
given for each share OF Lake Shore stock
under the merger proposition.
other Accountants at Issue.
Arldavits made ny George Oliver May.
a public accountant. and Hobart poI-er.