The daily morning journal and courier., 1907-06-06
MELLEN NOW
 OUT WITH T First Official Announcement That He is Acquiring
 B. S M. MATTER UP IN BAY STATE Governor Guild Sends a Special Message to
 Legislature. LETTER FROM PRES MBLLEN Practically Share for Share and Promise of No
 Water.
LETTER FROM PRES MELLEN

Boston, June 5 Governor Curtis Guild, late to-day sent special mes sage to the legislature in which it was officially announced for the first time that the New York, New Haven and Hartford Railroad company is acquir- ing control of the Boston and Maine railroad, and urging upon the legisla- ture the importance of enacting new laws before adjournment for the protec- tion of the state against watering of stock or excessive tariffs in connec- tion with the proposed merger.
 The message contains two letters, an official request from Governor Guild to President c. S. Mellen of the New Ha- ven road for information relative to the rumored proposed merger, and the re- ply of President Mellen.
 President Mellen says in his letter:
 Interests identified with my com pany have acquired a large stock inter- est in the Boston and Maine railroad and have entered into agreement to ac- quire such additional stock as may de- sirs to avail of the terms within Tea- sonable time in the future.
 "The basis of such acquisition made and proposed has been the exchange of , shares of the two companies, share for share, with a commission to be paid by Boston and Maine shareholders of sev- enty-five cents per share, a similar commission being paid by the purchas- CTS"
 President Mellen says further that the purchases of stock are being made fin the hope and belief that an ultimate union of the two properties will be per- rn.tted, under such restrictions and reg ulations as the commonwealth may deem necessary and desirable"
 It is stated the Boston and Maine road will still be handled by it's own board of directors; that no stock will be issued in connection with the purchase, against which charge of stock-water- ins or imitation can be made, and that no reduction in facilities will be brought about.
 Tt is our confident belief" continues President Mellen, "an increased ser- vice, without transfer through the Con- nectieut valley, through the union of those properties, will result in the de- velopment of a largely increased reve- nue through the greater convenience available.
 Similarly, through service by way of Worcester and Nashua, through the Merrimack valley, cannot fail to ben eft materially the public, with result ing advantage to the revenue of the railroad.
 Tt is possible, through this common control, to bring the roads in Boston all into a union station, with result ing convenience to the travelling public and economy to the railroad. It is also possible to compel such consider ation of Boston's position that the diff ferentials under which it's merchants have so long suffered shall no longer discriminate against it's importance in the commercial world. Having no pos sibility of becoming trunk line to and from New York and the west, the in- fiuence of the company will be exerted upon the attraction of the largest amount of business to and from Bos- ton as against any other port"
 Governor Guild, in his message, says: Every approach to monopoly demands a greater measure of public regulation and control, for if the state does not control the railroad the railroad is rea- sonably sure to control the state. believe that this session should not close in silence on this question It should leave behind it some safeguard of the public interest. The promise that there will be no stock watering is contingent on the life and health of a single man, or, at best, an existing board of directors. It should be crys- talized into law"
 Governor Guild suggested the exten- sion of the statutes relative to the su- pervision of rates and fares, and the withdrawal or curtailment of any ex- isting privileges by the railroad com- mission.