New Britain herald., 1927-02-09
ADDITIONAL STOCK ISSUE REQUESTED
Move Is Started to Break
 Wheeling "Corner''

Wheeling and Lake Erie railroad asked the interstate commerce con- mission today for authority to issue 222,276 shares of new common stock to relieve a stock shortage which has created disturbance on the New York exchange.
 When issued the new stock will be exchanged at the option of stock holders for 11S.S26 shares of prior lien stock and 103,450 shares of pre- ferred stock in the railroad. The result will be to increase the amount of common stock and enable those who have sold common stock short" 10 make the required delivery.
 In filing the application the com panys officers questioned the neces- sity for obtaining authority from the commission before making the issue, but the application said the commis- sion's approval would be asked not withstanding.
 Control of the Wheeling G Lake Erie has been obtained by joint ac- tion of the New York Central and the Van Sweringen interests, and the outright purchase of it's major ity stock has removed from the mar ket the usual supply of shares.
 New York, Feb. 9 P-A new east ern railroad empire born of the stock market turmoil in which the New York Central, the Baltimore and Ohio. and the Nickel Plate roads ob- tained control of the Wheeling and Lake Erie and the Western Mary land systems was forecast here to- day.
 The New York Herald Tribune views the alliance of the three roads as one of the steps in a battle spon- sored by J. P. Morgan and company and George F. Baker, chairman of the First National bank board and a dominant figure in New York Gen. tral against L. F. Loree. and the Pennsylvania for rail supremacy of the territory east of the Mississippi. | Predictions of the mammoth con- solidation were heard after another frenzied climb in rail stocks on the New York exchange yesterday. Ef- i forts of short interests to cover on commitments boosted Wheeling and Lake Erie 35 points to a new high record of 13o. The stock closed at 100 after a days turnover of $500 | shares.
 Seven Per Cent Premium ! The premium of seven per cent on borrowed stock prevailed as the mar ket closed. Describing the predica- ment of Shorts, the Times says. "Un- mistakable evidences of a corner de- veloped and Wall street abandoned the pretty pretense which it had kept up for days by referring to the | stringency as a technical corner" The new powers in Wheeling and I Lake Erie are constituent members of a group of roads penetrating to every industrial center Of importance | in the east and connecting all the major land and water gateways of this territory.
 35,O00 Mileage
 The new combine, the Herald Tribune asserts, boasts 35,000 mile age and an aggregate capitalization of s3,65o,6 ,662,237 and ''transcends the dreams of those ambitious rail- road builders of another generation. F. H. Hartman and James J. Hill" The Herald Tribune sees the B. & o. and the Van Sweringens as allies of the New York Central in the re- newal of the Central's old struggle for supremacy over Pennsylvania, supported by MT. Loree, president of i the Delaware and Hudson and lead- ing figure in the Kansas City South orn consolidation.
 The transfer of control In Wheel ing and Lake Erie and Western Maryland removes these two roads, providing the recent stock purchases of the alliance are approved by the interstate commerce commission, from MT. Loree's merger plan for a fifth trunk line to the west. Counter Attack
 The maneuver is also regarded as a counter attack against Mir. Loree and the Pennsylvania, who two years ago blocked a plan of the al- lied interests to give the Lackawanna to the Nickel Plate and the Lehigh to the New York Central.
 MT. Loree supported the Penn sylvania demand that mo four sys- tenn plan" could become effective which did not allocate either the | I.ackawanna or the Lehigh Valley to the Pennsylvania.
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