Large corporations sometimes find it more convenient, in securing control of smaller corporations whose strategical position or favorable earnings will benefit them, to guarantee the interest on their bonds and the dividends on their stock, than to lay out a considerable amount of money to acquire them. Indeed it often happens that the holders of the securities will not part with them, but do not object to a lease of their property in return for a guarantee of a certain dividend upon their shares. Such stocks are known as " guaranteed stocks." Their dividends are guaranteed at a fixed annual rate by a lease made for a term of years, usually 99 years, 999 years, or perpetually. Such stock sometimes carries other privileges, which can be ascertained only by an examination of each issue and guarantee.

There are a large number of small railroads whose names, if given, would be unfamiliar now to the general public, although they are very prosperous properties, whose dividends on their shares are guaranteed by other railroads. These roads were taken over by lease many years ago, and have become so grafted into the main system of their guarantor roads, that they are today, in all essentials, a vital part of the larger corporations.

Parts of nearly all our principal trunk lines are made up of smaller roads welded into one, although existing as separate corporations. This is the condition which investigation will show exists in the Delaware & Hudson, the Lackawanna, the Reading, the Pennsylvania, the New York Central, the Lehigh Valley, the Jersey Central, and other roads. Some of the small roads whose dividends these roads guarantee, existed before the holding corporations came into existence. The Morris & Essex Railroad is an example. The road was built before the Delaware, Lackawanna & Western, as one system, was planned. A list of guaranteed stocks and their guarantors follows.

Albany & Susquehanna R. R. Co., 12.25% Stock.

Guarantor: Delaware & Hudson Co. Albany & Vermont R. R. Co., 3% Stock.

Guarantor: Delaware & Hudson Co. Allegheny & Western Ry. Co., 6% Stock.

Guarantor: Buffalo, Rochester & Pittsburgh Ry. Co. American Telegraph & Cable Co., 5% Stock.

Guarantor: Western Union Telegraph Co. Atlanta & Charlotte Air Line Ry. Co., 7% Stock.

Guarantor: Southern Railway Co. Augusta & Savannah R. R. Co., 5% Stock.

Guarantor: Central of Georgia Ry. Co. Avon, Geneseo & Mount Morris R. R. Co., 3½% Stock.

Guarantor: Erie R. R. Co. Beech Creek R. R. Co., 4% Stock.

Guarantor: New York Central & Hudson River R. R. Co. Bleecker St. & Fulton Ferry R. R. Co., 1½% Stock.

Guarantor: New York Railways Co. Boston & Albany R. R. Co., 8%% Stock.

Guarantor: New York Central & Hudson River R. R. Co. Boston & Lowell R. R. Co., 8% Stock.

Guarantor: Boston & Maine R. R. Co. Boston & Providence R. R. Co., 10% Stock.

Guarantor: New York, New Haven & Hartford R. R. Co. Broadway & Seventh Avenue R. R. Co., 10% Stock.

Guarantor: New York Railways Co. Brooklyn City R. R. Co., 8%-10% Stock.

Guarantor: Brooklyn Heights R. R. Co. (B. R. T. System). Burlington, Cedar Rapids & Northern Ry. Co., 6% Stock.

Guarantor: Chicago, Rock Island & Pacific Ry. Co. Camden & Burlington County R. R. Co., 6% Stock.

Guarantor: Pennsylvania R. R. Co. Canada Southern Ry. Co., 3% Stock.

Guarantor: Michigan Central R. R. Co. Catawissa R. R. Co., Pfd. 1st & 2nd Issues, 5% Stock.

Guarantor: Philadelphia & Reading Ry. Co. Cayuga & Susquehanna R. R. Co., 9% Stock.

Guarantor: Delaware, Lackawanna & Western R. R. Co. Chattahoochee & Gulf R. R. Co., 5% Stock. ,

Guarantor: Central of Georgia Ry. Co. Christopher & Tenth St. R. R. Co., 8% Stock.

Guarantor: New York Railways Co. Cincinnati, Sandusky & Cleveland Ry. Co., 6% Pfd. Stock.

Guarantor: Cleveland, Cincinnati, Chicago & St. Louis Ry. Co. Cleveland & Pittsburgh R. R. Co., 7% Stock. Cleveland & Pittsburgh R. R. Co., Special Betterment 4% Stock.

Guarantor: Pennsylvania R. R. Co. (Pennsylvania Co.). Columbus & Xenia R. R. Co., 8% Stock.

Guarantor: Pittsburgh, Cincinnati, Chicago & St. Louis Ry.

Co. Commercial Union Telegraph Co. of New York, 6% Stock.

Guarantor: Postal Telegraph Company. Concord & Montreal R. R. Co., 7% Stock.

Guarantor: Boston & Maine R. R. Co. Connecticut & Passumpsic Rivers R. R. Co., 6% Pfd. Stock.

Guarantor: Boston & Lowell R. R. Co. Connecticut Railway and Lighting Co., 4% Pfd. Stock. Connecticut Railway and Lighting Co., 4% Common Stock.

Guarantor: Consolidated Railway Co. (New York, NewHaven & Hartford R. R. Co.).  Connecticut River R. R. Co., 10% Stock.

Guarantor: Boston & Maine R. R. Co. Dayton & Michigan R. R. Co., 8% Pfd. Stock. Dayton & Michigan R. R. Co., 3½% Common Stock.

Guarantor: Cincinnati, Hamilton & Dayton Ry. Co. Delaware & Bound Brook R. R. Co., 8% Stock.

Guarantor: Philadelphia & Reading Ry. Co. Delaware R. R. Co., 8% Stock.

Guarantor: Philadelphia, Baltimore & Washington R. R. Co. (Pennsylvania R. R. System). Detroit, Hillsdale & Southwestern R. R. Co., 4% Stock.

Guarantor: Lake Shore & Michigan Southern Ry. Co. Dover & Rockaway R. R. Co., 6% Stock.

Guarantor: Central R. R. of New Jersey. East Pennsylvania R. R. Co., 6% Stock.

Guarantor: Philadelphia & Reading Ry. Co. Eighth Avenue R. R. Co., 16% Stock.

Guarantor: New York Railways Co. Elmira & Williamsport R. R. Co., 6.4% Pfd. Stock. Elmira & Williamsport R. R. Co., 4.54% Common Stock.

Guarantor: Northern Central Ry. Co. Erie & Kalamazoo R. R. Co., 9.75% Stock.

Guarantor: Lake Shore & Michigan Southern Ry. Co. Erie & Pittsburgh R. R., 6.4% Stock.

Guarantor: Pennsylvania R. R. Co. (Pennsylvania Co.). European & North American Ry. Co., 5% Stock.