$41,000,000 Cash

Light, power, gas and traction companies operating in 98 New York cities were affected by a business deal last week. But the people in those cities felt no throb in the even running of their utilities.

The New York Central Railroad owned two corporations serving several of those communities--the Mohawk Valley Co. (light, power, gas) and the New York State Railways. Operating in contingent districts is the Empire Power Co., and closely allied financially with Empire Power is President Ellis Laurimore Phillips of the Long Island Lighting Co.

Mr. Phillips and Empire Power wanted the other utilities from the New York Central. They and representatives conferred with the Manufacturers' Trust Co. of Manhattan and with W. C. Langley & Co., investment bankers. Together they figured what the property was worth and then dickered with New York Central officials.

Last week the deal was closed. New York Central received $41,000,000 cash, a vast and potent sum. The others set about creating a new company to hold Mohawk Valley, New York State Railways and Empire Power.