The Worcester spy. [volume] (Worcester, Mass.) 1898-1904, 1899-08-13
WANT GUARANT TEES.
The Managers of B.
& A. Prefer Them
to Risks.
BELIEVE IN VANOERBILTS.
Consider There Is Every
Safeguard in the
Lease.
BELIEVE IN VANOERBILTS.

tease or the Boston & Albany to the
New York Central which, while they
cannot be officially stated, ought to be
known to the stockholders and the pub
lie generally.
Everybody ought to recognize that the
Boston & Albany directors are in a sit
uation where they cannot speak so free
ly as their critics. With the closest re-
lations with the New York Central, and
as close students of the railroad situa-
ton in New England, they must have
within their grasp all the facts that
any stakeholder or any outsider or any
critic can possibly have. To put them in
position of defending a lease which
they have made for what they consider
the best interests of all the stockhold-
ers, is, in a measure, to put them in the
position of critics of the property that
they are sworn to defend If the opposi-
ton to the Boston & Albany lease can
secure from the New York Central or
the New York, New Haven & Hartford
or any other interests q larger return
than that promised by the lease now
written, no impediments should be
thrown in their way. If they cannot, the
alternative to the stockholders should
pc the consideration as to whether con-
tlnued Independent management is like
ly to secure for them more permanent
or better returns than are now offered
We have investigated the matter of
the Boston & Albany lease, with view
Of bringing forth any new facts or sta
tistics that should be known for a clear
discussion of the situation.
The interview published tris week by
the Boston News Bureau with Director
Goldman Of the Fitchburg road, in
which Mr.. Goldman admitted that the
New York Central some time ago made
an offer for the Fitchburg property,
caused us to make inquiry as to
whether the New York Central offer to
lease the Fitchburg preceded the Bos-
ton & Albany lease negotiations, and
we are informed that they not only
preceded but were direct cause of the
Boston & Albany directors taking up
the question of the lease Of their prop
erty to the New York Central.
AS everybody knows, the Boston &
Albany and the New York Central have
had the closest personal and operating.
relations. Privileges have been denied
the Fitchburg by the New York Cen
trail because 1T was a rival of the New
York CentraPs ally, the Boston & Al
bany. The Albany has also had its pick
of New York Central business for New
paying traffic, not because of written
contracts, but because OF numerous
unWr1tten alliance which grow I'D in
the course of business under harmoni-
GUS and mutually profitable relations.
1t goes without saying that a New
York Central alliance with roads either
to the south or north of the Boston &
Albany tracks would not improve the
Boston & Albany
hn
largely as low grade Hoosac Tunnel
line for the transportation of low
grade freight for export. This business
must increase in the future. Either
the Fitchburg or the Albany must take
its share in the export traffic from the
west, for the New York Central will
demand its share of the trunk line
business of the country and must have
connections and outlets for this trade
other than at New York.
The day of small things and small
roads has passed, and the seaboard
harbors must furnish terminals for the
trunk line systems for the business of
the whole west
The Boston & Albany does not desire
to ask its stockholders to invest mil
lions in seaboard terminals with no
guarantee of connections outside the
state
The New York Central was DESTROYS
OF taking the Albany into partnership
and giving Boston & Albany share
holders two for one in New York Gem
trail stock. The Boston & Albany di-
rectors naturally preferred not to take
| the risk upon a wholesale railroad bust
| ness, which, while it might be all right
for the prosperous present, would not
offer the future security demanded by
the character Of the investments in
Boston & Albany shares.
They practically elected to go out of
business, and made what they believe
to be the best trade that can be made
under the circumstances. In this re-
spect their trade very much resembles
the Old Colony with the New York
New Haven & Hartford. When the Old
Colony stockholders were confronted
with the proposition to eXpend about
100000 in and around Boston, they
said the size of their capital did not
warrant this large expenditure in a
brief period Of time. They therefore
went out of business in favor of the
New York, New Haven & Hartford; the
conservative stockholders taking a 7
per cent guarantee, and those who
wished to continue in the railroad BUSH
ness taking their part in the New Ha-
ven 10 per cent stock. The conservative
element to date has come out consider
take
New Haven shares, and the public is
now receiving the benefit of more than
$1700O000 expended by the New Haven
on Old Colony and it's Providence line
in and about Boston.
Unlike many roads, the Albany has
improved its property from it's earn
ings without expanding it's capital ac-
count This improvement has been
visible and has therefore been reflected
in fIe Of CHI
surplus above dividends, anyone NAV
see upon the most casual examination
of the Boston & Albany reports, is a
receding and not an increasing amount
per annum.
The Albany could formerly extend its
docks and elevators without calling
upon its capital account. 1t could
probably continue to do this for some
years II IL continued the next ten wears
as the past ten years, to take onlv
first-class traffic, but If 1t is to do bust
ness through the port Of Boston in a
wholesale way, provision must be made
as in the case of the Old Colony, for a
larger capital expenditure.
The Boston and Albany has two
heavy grades to surmount, the Berk.
shire hills and the Charlton summit.
and what the New York Central hauls|
In sixty-car trains, the Boston and AL
bany carries to Boston in trains Of
thirty cars each.
An example of what this means on a
low freight rate basis has been COM
puted upon the basis Of a recent shin
ment of wheat which came from CHI
cage. to Boston upon rate of 7lSc Der
hundred pounds, a minimum rate for
the present time; but who can say the