Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-04-03

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answer parallel between Mr..
Young and William White. pres
ident of Central. who represents
management. IN the tense strug-
gle which is making business
history today.
In order to point up the strug-
gle for the Central as Of now.
the Associated Press business
news desk put Is identical Ques-
tions to Mr.. Young and Mr..
White. Both personally replied
to the queries and neither had
an opportunity to see what the
other said.
Mr.. Young said that under
new leadership" he was sure
better through service is possible
at Chicago. Mr.. White said that
the demand for such tranScon-
tinental through service is not
sufficient to warrant the costs
and losses involved.
Here are the answers Of both
men to the last eight questions:
@. What is the approximate
value of CentraPs holdings Of
Manhattan real estate and what
future policy do you recommend
in regard to these holdings?
Mr.. Young-These properties
are worth about $3.50 million al
though they yield the Central
less than S per cent. They
should be sold and the proceeds
used to retire Central bonds,
some of which sell at a 80 per
cent discount. Then Central
bonds could be ref1nanced on a
much lower coupon basis. We
retired S per cent and 6 per cent
bonds in Nickel Plate and re-
financed them at competitive
bidding on a 2.93 per cent basis.
The air rights above the
Grand Central terminal are the
most valuable in the world, and
are not included in the above
figures. Is it because an Office
building here would compete
with the Rockefellers and others
that it has never been con-
Structed?
Mr.. White-Approximate as
seSSed value of property in the
Grand Central-Park avenue
area not used for railroad opera
ton is $11O million. These val
liable properties have been de-
veloped wisely by New York Gen.
trail over a period of years into
a valuable earnings asset. They
will be sold or retained so that
New York Central Stockhold Il
interest in these valuable earn
ings assets will not be impaired
And I would emphasize that the
provisions of mortgage linden
lures which are lien upon these
properties cannot be ignored.
@. Do you fOresee any changes
in the executive management Of
the Central as a result Of this
fight, no matter which side
wins?
Mr.. Young have seen little
change for the better since G. &
o. first bought its stock seven
years ago, even though we be-
gan then to criticize and sug-
gest vigorously. There is little
hope for betterment under the
present board. After all. the Of
ficers and directors of the four
banks represented on the Cen
trail board interlock with Ia
other railroads and so other
companies have assets of SLOT
billion. Just where then are their
loyalties?
Mr.. White-I cannot make an
answer based on the premise
that the Young side might win
because it won't. New York
Central management will con-
tinue to be progressive II
changes are necessary any time
to insure progress. they will be
made.
@. Do you consider that ar
rangements could be made with
other railroads to assure trans
continental through servic 4
without a Chicago layover?
Specifically, what railroads?
Mr.. Young-I am sure that
under new leadership arrange
ments can be made with other
railroads to give better through
service at Chicago. The New
York Central presently operates
through cars over four Western
routes but with layovers in Chi
cago inexcusably averaging more
than five hours.
Mr.. White-Yes. it is physi-
cally possible to provide trans
continental passenger service
without a Chicago layover, but
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