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Vaaderbiit's Last Effort At Railroad Consolidation

Vaaderbiit's Last Effort At Railroad Consolidation image
Parent Issue
Day
20
Month
May
Year
1870
Copyright
Public Domain
OCR Text

lo the World of May 0, a sketch was given df Commodore Vanderbili's píaos for consolidutiup, undor his general su peí visiou and control, tho New York Contra], Lake Bhore, Rock Islatid, thc Northwestern and St. Paul Roads. Thie grand project for controlling abou 5,000 miles of railroad under ono master head is to be cfTected ou an amount o: capital so email that t will aetouish the public. The sóbeme is one which illus trates Btrikingly tlic power and valué o a "master intellect." The New York Central Compnny is about to lease the Lake Shore road at seven or eíght per cent per annum for ninety-niDe yeais, or a perpetual lease Before this is done, the Lake ühore stock will be watered about twenty peí cent., thereby iucreasing the share capi tul to about $42000,000, or perhaps even more. Harletn, which is owdcc moHtly by the Commodore, has been earning about 20 per cent, per annum for several years. The earnings for the current year will be about tweuty-four per cent, per anuuin, and when the Madison avenue line is running, they will exoeed that. The earrjiogs of Harlem will therefore warrant an increase of the capital stock equal to three hundred, and on this bnsis Harlem will be leased to tho New York Central Company ateight per cent. per annnm. Similar arrangement will be made with the Rock Island, Northwestern and St. Paul Koads. When these are eflTected Commodore Vanderbilt then.by holding only $23,060,000 of New York Central stock, possesses the absolute legal control of about fivethousand miles of railroad, forming trunk lincs f rom New York City to Chicago, Omaha and St. Paul, thus forming a direct connection with the existing Pacific railroads to San Francisco, and with the projected Nortbern Paciöo Road to Puget's Sound. Thus can one man with great brains and comparatively a Bmnll amount of cash - only, in fact, about two per cent. as margin of tho total value of tho proporty controlled - carry out a scheine which is tbe grandest in the history of railroads, and ahnoet staggers belief.

Article

Subjects
Old News
Michigan Argus