Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1892-12-16
A BIG RAILROAD DEAL.
The New York, New Haven & Hartford
Railroad Now Controls the COnnecti-
cut River

And Its Leased Lines---A Good Move
ment for the Stockholders and Prob
ably for Local Patrons.
A railroad consolidation which effects
Brattleboro and all the towns of the Con-
necticut river valley, from Springfield,
Mass, to Windsor, as well as those between
South Vernon and Keene, was arranged
Tuesday. when the directors of the Con-
necticut River railroad accepted a PROPOSE
ton for a lease of their lines to the New
York, New Haven & Hartford, or COnsoli-
dated system. The temporary agreement
between the directors is transportation
contract" for 60 days, beginning Wednes-
day, when the New York, New Haven d
Hartford railroad took control of the Con
necticut River road. The terms of the
proposed lease, to be ratified by the Con-
necticut River stockholders at a special
meeting called the 23l, are these: The pc
riod is 30 years, the stockholders of the
leased road are to receive the same divi-
dends as granted the New York, New Ha-
ven d Hartford owners, and they are to
have equal rights in the distribution of the
Sl5. 100000 in debenture certificates of the
Consolidated road. The Connecticut Riv-
er stock has been selling al 235 and paws an
3 per cent dividend; the Consolidated sells
at 2jj and pays a 10 per cent dividend so
the inference is easy as to the probable
benef; the Connecticut River owners Sc
cure by the transfer.
To Contract the Reading-BOston 4
Maine Combination.
Following the consolidation of the Read
ing and Boston & Maine systems, it was ex-
pected that other combinations would be
formed, and in the case of the Connecticut
| River road ii would naturally be absorbed
! by the Boston Il Albany or the Consol-
dated. As the two latter roads are friend
! ly the Boston IL Albany prefers to have
| the Consolidated secure the line than let it
/ 60 TO a rival system. The River road
/ amounts to an extension Of the ConsOi-
| dated line The combination will result
| especially in improved passenger service.
| The vote Of the Connecticut River railroad
directors was unanimous for the cOnsoli-
/ dalton, and it is not expected that the
| stockholders will hesitate TO ratify a lease
/ when they can secure 10 per cent stock for
/ what j. paying per cent, especially since
/ the new stock la, rights to a share in the
/ SD, 600, 900 of certificates. President Null
/ ligau of the River road says he has realized
/ for some time that something would have
/ TO It Nplt 10 NIblt'l lllt 'oiluecIlGul River
/ railroad. The Boston a Maine railroad
has secured so many poor paying lines that
1t is looking for a profitable one. and at
tempts have been made TO buy up the stock
of the River railroad. The Consolidated
railroad is a great system now, and lac ex-
poets it will deal generously with the River
road, expendins money for improvements
and lettering the service.
The stock of the Connecticut River rail-
road amounts TO $3.50, 900. and il has no
bonds. The consolidation makes the New
| Y ork, New Haven d Hartford. with over
| 1000 miles OF track, the second strongest
line in New England to the Boston d
Maine, which operates over 1900 miles.
| The Connecticut River owns 80 miles of
track, but controls double that distance. as
it leases the Vermont Valley. between
Brattleboro and Bellows Falls: the Sulli-
van county (which is owned by the Yer
mont Valley from Bellows Falls to Wind
sor; and the AshuelOt road from South
Vernon to kcene. The 10 miles of track
between Brattlehoro and South Vernon,
belongs to the New London Northern road
controlled 10y the Central Vermont The
consolidation will make the growing White
mountain train service more complete, and
extend the outlet the PENNSYLVANIA system
has " It's lIdlllt agreements Win the new
York, New Haven d Hartford; and it
practically means the receipt by the New
Haven OF all the traffic of the Central Yer
mont, which controls most of the passenger
and freight transportation from Lower
Canada and northern Vermont.
The New York. New Haven n Hartford
railroad has the right TO carry $50. 600. 600
in stock. and the amount now outstanding
is S2S, SO. 600. BY the action of its di-
rectors Saturday. money for improvement
is TO be raised by issuing at par Slj 900, 600
OF per cent debenture certificates, which
can be exchanged for stock in 10 years.
The distribution is ordered at the rate of
40 per cent TO each shareholder. As S15.-
100000 is more than 40 per cent of the
consolidated stock, there will he no oppor-
tunity for the Connecticut River road to
come in at the same rate
The Local Eject.
What the local effect will be is a matter
of conjecture, but it is thought generally
that the result will be beneficial to the
towns of the valley, giving increased service
and more traffic. Some of the railroad
men think that in time the New London
Northern division men here will go 10
South Vernon to live, but such a move
ment is matter of guess work. Ii is de-
vOutly to be wished that the rate over the
Vermont Valley road, which is a relic of a
by-gone age, will be changed. The local
rates on this division exceed four cents,
and it does not seem possible that a large
and progressive corporation will continue
such a charge.