The daily morning journal and courier., 1907-12-13
ASKS MELLEH 10
 MAKE II CLEAR
Continued from First Page.


 
 The present financial condition of the New York Central does not encourage it to go into the market as a purchaser of further railroad investments. Its local reputation. from it's mismanage- ment of the Albany properties, is such that public sentiment could be relied on to prevent, in the legislature, any merger which it might attempt to bring to pass.
 The road itself has hardly been sufficiently pleased with it's New Eng land investments to care to extend their scope. Moreover, the public utili- ties commission of New York must be taken into account. Its powers, much larger than those of the Massachusetts railroad commission, enable it to exer- else close scrutiny over all further is- sues of obligations, both as to rates and terms. The New York Central as bona fide purchaser is thus hardly to be seriously considered
 'The possibility of what the brokers call a Wash sale" in this quarter should not, however, be overlooked This might be done through the agency of the American Express com pany. It was one of the largest con- tributors to the block of stock turned over to the New Haven, and would doubtless be able to protect the rest of these holdings, if desired, as a part of further financial operations. But that the New York Central actually feels itself in a position to take up the financing and operation of the Boston & Maine is most unlikely.
 This brings us to the Canadian Pa tiic as customer. From transpor- tation point of view, it's acquisition of the Boston and Maine would be in the line of natural progress. Boston would give the consolidated system nice free port at the natural center for all eastern Canada, and would, besides, bring to Boston direct connections with tho west through to the Pacific ocean The Canadian roads financial condition, moreover, is peculiarly strong. It's stock has held up remark ably well in the recent crisis, and it's general backing is such that 1t might reasonably expect to make an invasion of New England railway territory.
 But this Is only one side of the story This is not the first time the Canadian Pacific might have acquired a road into this port The old Bos ton and Lowell was at least once with in it's reach The reasons for it's de- clining in the past to make Boston it's eastern terminus are not less operative to-day. The Canadian Pacific Is government institution to an extent little realized on this side of the line. The same grants and subsidies which are promoting it's progress are also di- rected toward the building up of the Canadian shipping and of Canadian ports. The road is really an agency of the Canadian government for com prehenslve home development. It could hardly afford to face the protec- tive spirit on the Canadian side of the line by an alliance which would make an American city It's great eastern ter minus, building up trade and conner cial connections here, at the expense of Canadian ports which are equally with the road itself the object of the governments care and solicitude-
 ''For this reason 1t seems unlikely on the face of it that the competitive interest to which Mir. Mellen refers Is the Canadian Pacific railroad. The standardization of the report will thus be awaited with the greatest interest vr ..4I-. { sh .sa xa iiroa dc in nueett0u proves to be a bona fide purchaser of the Boston & Maine, as Is of course posslble-it will constitute a striking chapter in railroad and industrial his tory. And of course, there may be another customer still although It's Identity is not at once clear. Until the public knows of the direction into which this block of stock is going it is premature to discuss how we should like such a merger as either or any of these transfers would constitute or how either or any such merger would compare with the wedding of the Maine system with the New York, New Ha- ven & Hartford. now on the books, and awaiting the action of the legislature.
 "Mr. Mellens' statement, given out this afternoon, affords no information of the sort that Is preliminary to any intelligent discussion of the question"
 Shaughnessy Mum.
 Montreal, Dec. 12.--President Thomas c. shaughnessy. when interviewed about negotiations for the control by the Canadian Pacific railway of the Boston and Maine railroad, said: T have positively nothing to say"
 There is a feeling among minor Can aIian Pacific railway officials, however, that the rumor Is well grounded one,