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Show IW YORK CEML M9K MERGER Lake Shore nnd Michigan Southern and Michigan Central Cen-tral to Be Absorbed. BOTH UNDER CONTROL Wall Street Expects Other Lines to Be Taken' Under Wing of Parent Company. Ni:V YORK. Dec. 22. What was regarded re-garded In Wall street as the first step In the long rumored plan to consolidate the subsidiaries of the New York Central system with the parent company was taken today, when the New York Central and Hudson River Railroad companies addressed letters to the holders of its ?1 10.000.000 three and a half collateral trust bonds, which were given In exchange ex-change for stock of tho Lake Shore & Michigan Southern and Michigan Central roads, asking their conHcni to merge either or both roads with the parent com-pany. com-pany. It Is proposed to consolidate only the Lake Shore ai this lime, but owing to a provision of the mortgage tho consent of iho holders of the Michigan Central proportion of the issue must be obtained. Consent Is Asked. The way thus is left open, however, for a consolidation of the Michigan Central Cen-tral with the New York Central, and tho bondholders are asked - to glvo their consent con-sent to sii'-h consolidation. According to an offh er of tho company, the Immediate object of the absorption of the Iik" Shore Is to obtain a through line to Chicago under one mamipeincnl, to the end that Its operation may be placed on a tsh cumbersome basis. The bondholders are asked to relinquish their lien upon the Lake Shore stock pledged as security for Ihc bonds, and to accept In return what practically would bo second mortgage bonds on the consolidated con-solidated system. Other Lines in Merger. Several other New York Central lines south of Chlcopo. and in Lako Shore territory, ter-ritory, will be merged with the parent company when the Lake Shore Is taken In. Control of the Michigan Central and the Lake Snore was secured by the New York Central In 100S. when it issued Its .1J per cent bonds for 450.000.000 of the Lako Shore .t- Michigan Southern stork at 200 and 5tS.73S.00U Michigan Central stock at 115. It was denied by officials today that any further plans for a comprehensive unification of tho system are contemplated, contem-plated, but il has been frequently reported report-ed that such Is the goal tho directors have In mind. |