New-York tribune., 1922-12-29
Van Sweringen
Railroads Vote
ToCOnsOlidate
New Company To BE Author
ized 10 Issue Sl05, 800
600 Stock; Will Operate
1905 Miles Of Track
]. ]. Burnett President
Unified Corporation To Re
Known as New York, Chi
cago & st. Louis X. X. Co.

cago 4 ~. Louis X. X. TO.
CLEVELAND, Ohio. Dec. 2s (By The
Assoeiated Pross). Consolidation Of
the New York. Chicago & ST. Louis
(Nickei Piato). the Chicago state
Line. tho Lake Eric & Western, Fort
WAYNE, Cincinnati 4 Louisville and
tho Toledo, 81. Louis 4 Western Glover
Les0 vas approved here 'o-eay by the
boards of directors 81 the five rail-
roads. representing an authorized cap
tslization Of SiO5 100000 and operst-
ing !. .seb miles Of road, W. a. Coi'ton'
viee-prssident snd general counsel Of
the Nickel Plate announced.
The directors Of the roads IN the
consolidation. sometimes referred 20 as
the "Vsn Sweringcn lines" approved
and executed an agreement for the uni
feation OF tho nvc roads into single
corporation 10 be known As t7c New
York. Chicago & s.. Louis Railroad
Company. and directed submission Of
che ngreemcn, and articles Of eonsoli-
da,ion 70 meetings Of stockholders OF
the several companies. %,
Stockholders Of the Nickei Plate VIII
meet here March II next; the Cnieago
4 State Line AZ Chicago Marcn l9i
Lake Erie 4 Western az Peofla' IT.
March "a; Fort Wayne, Cincinnati
louisville az Muneie, md Mareh -
and the Clover Leaf az Frankfort, lnd'
IN a q II.
q Vas announced.
TO Effect Economies
The consolidation "will make pos
tn,io economics in operation and gen
crai administration and viii enable
the roads 20 compete more effectively
with larger systems serving the same
territory and give improved service 90
the public" Mr Colston said.
The operation, management ana con
troll Of the Lake Eric Western Rail
road and the Fort Wayne. CINCINNATI
& Louisville Railroad by me present
Nickel Plate system was authorized py
tbc Interstate Commerce Commission
Jyiv 4 100. The Chicago & state Line
Railroad has for many years been op-
systed bv the Nickel Plate under lease.
The Glover Leaf, which IS now IN the
hands Of receiver. has been con.
trollod and operated By tho Nickel
Plate for some time.
Hinder the consolidation the mileage
will extend from Buffalo through
cleveland 70 Chicago. Peoria, 81. Louis.
rort WAYNE and Indianapolis. and the
Iake ports Of Sandugky and Toledo.
Tho consolidated company, as success
sor Of tho Toledo. ST. Louis western
Railroad Company, viii own one hall
of the capital stock Of the Detroit q
Toledo Shore Line Railway, which con-
meets Toledo with Detroit
Capital SIO5,5OO.OoO
The terms Of capitalization provide
chat 4he consolidated company VIII be
authorized iritiaily 10 issue $lOj,50O,-
GOO Of capital stock. which amount cor
responds 20 the sum OF the now author
i,ed cap,tal stock of the constituent
conpanies. or the total 20 be author
ized II is proposed 10 Immediately
issue s7s,967 900. corresponding 70 the
sum Of the stock now issued by the
constituent companies. OF the initial
capital stock, S45,SS0,000 viii be cumu-
laiive preferred, and S59,62O,OO0 VII be
common stock.
The combined assets Of thc .ive con-
etitucat companies as for September
on that date a total corpOrctc surplus
OF 500. 2.392 962 After tho adjustment
and contributions Of capital provided
for in the plans OF consolidation This
Surplus will be increased 10 s3d4j6.s36.
Under the plan Of consolidation,
ttockholders will receive loo stock OF the
consolidated company par for par OF
their shares Of stock OF the constituent
companies, and will retain:
For each 100 shares Of FIRST or second
preferred stock Of the Nickel Plate 100
shares of preferred. For each 100
shares Of common o. the Nickel Plate
100 shsres Of common. For each 100
shares o. preferred or the Lake Erie
4 Western 90 shares Of preferred and
40 shares Of common. For each 100
share Of common Of the Lake Erie g.
Western 45 shares OF common. For
each 100 shares OF preferred Of Clover
Leaf 65 shares Of preferred. And for
each 100 shares Of common stock Of
Clover Leaf 80 shares Of common.
The balance representing the differ
ence between the stock of the consoli-
dated companies. issued par for par for
the stock Of the constituent companies.
and the stock Of the consolidated com-
- pany retained by stockholders Of con
titueut companies. will contributed by
he respective stockholders 90 the con-
- solidsted company. 70 be held In It's
treasury or disposed OF as fully paid
treasury stock.
The agreement. as approved by Che
boards o. the FIVE roads, provides for a
directorate OF fftccn and dcsignates
q. +. Van Sweringcn, OF Cleveland, as
chairman Of tho board; j. j. Burnett
also Of Cleveland. as president, and
Walter I. Ross Of Toledo, as senior
vice president.
Mr. Van Sweringeu and Mr.. Burnett
now hold corresponding positions with
fhe Nickel Plate and the Lake Erie
n Mnnlnrr nrl Mr Do. n nm rrD.l |.