Report from Robert Young

Financier Robert R. Young this week totted up the final cost of his proxy fight last year for control of the New York Central Railroad. The bill came to $1,300,000 (v. the $100,000 he had "hoped" it would cost). Young disclosed in a letter to stockholders for the Central's annual meeting in May. Although Young had roared loud and long, and even filed suit to stop the Central from using its funds to fight him, now he has changed his mind. He asked Central's shareholders to foot the entire cost of his fight. Said Young: "Your board has been persuaded . . . that it would be a discouraging precedent. . . for us to defray our own expenses." Bob Young had also changed his mind in other ways. When he was trying for a foothold on the Central board, he came out foursquare for cumulative voting to give minor stockholders representation on the board, even boasted-at the Albany meeting last year that he had voted 100,000 shares in favor of it. Now that he is in control, he has proposed that the shareholders reject cumulative voting just to make sure that those he has ousted cannot get a foot back in the door. The adoption of cumulative voting now, said Young, "might invite some of the previous directorate and management, or their numerous and powerful allies, to seek reinstatement with no other purpose than to keep us from achieving our goals." For President Alfred E. Perlman, who has turned in a handsome performance at getting the Central back in the profit column, Young asked the stockholders to okay an option deal that would pay Perlman well for his efforts. Under the plan, Perlman would get options to buy 32,000 shares of Central stock at the market price last Oct. 20 (19 7/8), when the deal was made. With Central now selling at 40, Perlman's option deal is already worth $640,000.

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