The New York herald., 1921-12-15
NY. CENTRAL OFFERS
TOBUY OUT BIG FOUR.
Purchase Of Peoria-Eastern
Also Sought-Michigan Gen.
trail Divided Up.

with the view of further Capitalization
of the New York Central Railroads
ownership and control of its aflliated
lines. it's directors have decided to Of
fer to exchange for its own stock the
outstanding shares of the Cleveland.
Cincinnati, Chicago and st. Louis Rail-
way. OF the s9,99s.50O preferred stock
and the s47.02s70O common stock of the
Big Four, the New York Central now
holds $30207.700 of the latter issue.
At the same time the Big Four board
authorized an offer under which its
holdings Of the securities of the Peoria
Eastern Railway would be greatly in
creased. 1t was stated that the fore
going and other minor steps taken at
yesterdays board meeting were decided
upon to solidify the New York Central
system, which under the Interstate
Commerce Commissions tentative plan
for consolidation of the country's rail-
roads into nineteen groups would form
the nucleus of one group.
The terms of the security exchanges
and other details were set forth in the
following statement issued by the COM
pany yesterday:
THE board of directors of the New
York Central Railroad Company at it's
meeting this morning authorized the
making OF an offer to purchase the
stock Of the Cleveland, Cincinnati Chi
cago and st. Louis Railway Company
on the basis OF one share of New York
Central stock for one share Of s per cent
Cleveland. Cincinnati, Chicago and St
Louis preferred stock and of eighty
shares of New York Central stock for
100 shares Of Cleveland. Cincinnati, Chi
cago and st. Louis common stock, the
offer being subject to the approval Of
the Interstate Commerce Commission,
application for which is to be made at
once.
THE board Of directors of the Cleve-
land. Cincinnati, Chicago and st. Louis
Railway Company at it's meeting this
morning authorized the making of an
offer to purchase the stock and the
per cent. income bonds of the PEORIA
Eastern Railway Company on the basis
OF one $1,000 AZ per cent. first mort
gage bond of the Evansville. Mount Car
mel and Northern Railway Company, duo
1860, guaranteed by the Cleveland Cin-
cinnati, Chicago and st. Louis Railway
Company, for sixty shares of Peoria
Eastern stock and of one $1,000 Az per
cent first mortgage bond of the Evans
vile, Mount Carmel and Northern Rail-
way Company, guaranteed, for three
$1,000 per cent. Peoria Eastern income
bonds. the offer being subject to the ap-
proval Of the Interstate Commerce Com
mission, application for which is to be
made at once.
There are outstanding $4,000, 900 of
the income bonds and s9.994,200 of
Peoria Eastern stock. OF the stock the
Cleveland. Cincinnati Chicago and st.
Louis now owns $4,000. 900.
"At meetings of New York Central
boards this morning action was taken
authorizing the lease OF the Toledo and
Ohio Central, including with it the
GAINESVILLE and Western, the Kanawha
and Michigan and the Kanawha and
West Virginia to the New York Central
for rental of fixed charges and taxes
and in addition thereto an amount equal
to the net earnings of the Toledo and
Ohio Central for the year 1921, and in
the case of the Kanawha and Michigan
of per cent of it's stock.
THE making of the leases Is subject
20 the approval of the Interstate Com
merce Commission, for which application
is about to be made.
'The New York Central controls all
Of the stock of the lessor companies, ex-
cept few shares Of the stock of the
Kanawha and Michigan"
Michigan Central has declared a divi-
dend OF per cent, payable January
80, W stoCh Ol TeCoru DecefnDer 81. InlS
makes per cent. for the year 1921.
For several years past the rate has
been 4 per cent. annually.
Boards of directors of the other New
York Central lines declared dividends
as follows:
Stock of
Railroad. Payable. records
N. Y. c. r. r., 1Hcs. Feb. 1, 1922 Dec. 30 1921
C. c. c. & ST. L.,
pf, 1Aee. Jan. 20. 1922 Dec. 80. 1921
Detroit River Tun-
mel Co.. 3eo. -. Jan. 10, 1922 Jan. o, 1922
N. Y. State Realty
G. Terminal Co..
6q6 ............. Jan. 8. 1922 Dec. 80. 1921
Canada Southern
r. X. c., $3.50
share ......... Feb. 1. 1922 Dec 80, 1871