South Bend news-times. (South Bend, Ind.) 1913-1938, 1922-12-29
CENTRAL GROUP
OF CARRIERS TO
POOL RESOURCES
Lake Erie & Western, Nickel
Plate, Clover Leaf and
Two Others Unite.
DIRECTORS o. X. PLAN
Capital Stock Is SlO5.50O,000
Action Called Move
for Efficiency.

CLEVELAND. Dec 2S.-tBy A
P.) - Consolidation OF the New
York. Chicago & s.. Louis CN5ckel
Plate); the Chicago & State IAne;
the Lake Erie & Western; the Fort
Wayne, Cincinnati & Louisville. and
the Toledo. St Louis & Western
/ Glover Leaf lines was approved
here today be- the boards Of directors
OF the five roads representing an
authorized capitalization OF SI05.-
100000 and operating 1895 miles OF
road, W. A Colston. vice president
and general counsel for the Nickel
Plate, announced.
The directors Of the roads In the
consolidation, sometimes referred 20
as the ivan Sweringen lines" ap-
proved and executed an agreement
for the uniicaLon Of the five roads
into q single corporation 10 be
known as the New York. Chicago &
St. Louis Railroad Co.
Stockholders OF the Nickel Plate
Will meet here March i next; the
Chicago & State Line at Chicago,
March IS; Lake Erie & Western at
Peoria. H., March IA; Fort Wayne.
Pittsburg & Louisville. at Muncie.
Ind. March 10. and the Clover Leaf
at Frankfort, Ind. March 10. 10 ap-
! prove the consolidation. il was an
nounced.
To Increase Efficiency.
The consolidation viii make pos
sible economies in operations and
I administration and viii enable the
roads TO compete more effectively
with larger systems serving the same
I territory and give improved service
/ 20 the public" Mr. ColSton said.
The operation. management and
/ control OF the Lake Erie &, Western
and the Fort Wayne Cincinnati &
/ Louisville railway by the present
: Nickel Plate system was authorized
! by the Interstate Commerce COM
mission July 3. 1922. The Chicago e.
! State Line railroad had for many
wears been operated by the Nickel
I Plate under lease The Clover Leaf.
which is now in the hands Of "a re-
/ ceiver. has been controlled and op-
/ Grated by the Nickel Plate for some
/ time.
Under the consolidation. the mile
age VIII extend from Buffalo
through Cleveland to Chicago.
/ Peoria III s. Louis. Fort Wayne
/ and Indianapolis. and the lake ports
| OF Sandusky and Toledo. O. The
! consolidated company. as successor
| OF the Toledo ST. Louis & Western
/ Railroad Co, VIII own one-haf OF
/ the capital stock Of the Detroit e
Toledo Shore line railway. which
! connects Toledo with Detroit
To Issue Stock.
The terms Of capitalization pro-
vide that the consolidated company
Will be authorized initiaIIy 90 issue
! sos. 500. 600 OF capital stock which
/ amount corresponds TO the sum 0f
! the now authorized capital stock OF
! The cous-ituen. companies or the
total 20 be authorized Il Is pro-
/ posed 20 Immediately sue &18,367.-
. 00C. corresponding ID the sum Of the
. stock now issued by the constituent
/ companies. OF the initial capital
stock s45.8SO.0OO win be cumu iatlvs
/ preferred, and S59.65O,000 viii 5s
common stock.
! The combined assets OF tho Eve
companies as OF Sept 30 1922. to-
tailed S2O8. .229.9OO and they had on
that date a total corporate surplus
OF S22.392962 After the adjust
ments and contributions OF capital
provided for in the plans OF consoH-
dation. this surplus VIII be iucreas-
ed 10 S37,456.936.
Under the plan OF consolidation.
| stockholders win receive In stock OF
the consolidated company. par for
Ear OF their shares Of stock 0f the
constituent companies. and w1u re-
tain:
Shares 10 Be Retained.
For each 100 shares o. frst or
second preferred stock Of the Nickel
f. Plate. 100 shares OF preferred: for
each 100 shares OF common OF the
/ Nickel Plate, 100 shares Of common:
for each 100 shares OF preferred ot
the Lake Eris & Western. 90 shares
/ OF preferred and 50 shares OF COM
mon: for each 100 shares OF COM
mon of the lake Ere & Western. 45
shares OF common; for each 100
/ shares OF preferred OF Glover Leaf.
/ 65 shares OF preferred. for each 100