New-York tribune., 1908-05-24
HARTMAN AFTER ROAD
SEEKS CONTROL OF B. 8 NJ.
Negotiating for the New Haven's
Stock for the Delazcare 6 Hudson.

It has been known for several months that
the New York New Haven & Hartford Railroad
Company was disposed to sell its holdings o.
Boston & Maine stock. and at various times tho
Canadian Pacific or the New YORK Centrai mas
been mentioned the probable purchaser II
Is now understood that the prospective buyer -
the : ,Iaware & Hudson company, and there is
reason to believe that the negotiations nave
reached advanced stage.
Several trips have been made to Boston, the
headquarters of the Boston Maine system
in the last few weeks by C. S. Sims. second
vice-president and general manager Of the Deia-
ware & Hudson and other operating ofnclais
of the latter road, presumably with the opJee'
of looking into the operating details or the bos-
ton & Maine and familiarizing themselves with
the actual condition of the property-a steP
which would naturally be taken before CLOSING
negotiations for the change of control of rail-
road property. No positive confirmation OF the
reported deal can be obtained from the control
ling interests In the New Haven or the Della
ware & Hudson, but of the large stock
holders of the Boston & Maine expect to see the
transfer of the New Haven's holdings to the
Delaware & Hudson effected.
HARTMAN AN ACTIVE FACTOR.
In this transaction E. H Hartman, VINO is
commonly clas5ed perhaps the most infiuen-
tial member of the Delaware & Hudson board IS
said to be an active factor. Only day or two
ago Louis D. Brandeis, the Boston lawyer, who
has been opposing the merger of the Boston q
Maine with the New Haven, issued an open let
ter in which he denied that he was acting Tor
Mr. Hartman while admitting that his Ia"
partner solicited Illinois Central proxies for Sui
livan & Cromwell. of this city, the sec1or MEM
ber of which firm, William Nelson Cromwell,
acted as attorney for Mr. Hartman IN the con-
test with Stuyvesant Fish.
Mr. Hartman is supposed in Boston 10 De IN
terested in the destination of the New Haven s
holdin IS % Boston & Maine, as is indicated by
the remark of Chairman Warner of the special
commission commerce and industry ap-
pointed by Governor Guild of Massachusetts, 20
inquire into the proposed merger, who, in de-
Tending last week before the Railroad Commit
tee CT the Massachusetts, Legislature the COM
missions favorable report on the merger, said
that if the Boston & Maine stock were sold in
the open market it would probably be acquired
by Mr.. Hartman or ether outside interests
1t was announced nearly year ago, after per-
sistent rumor and frequent denial, that the New
York New Haven & Hartford had acquired S1O,-
994 800 of the common and preferred stock of
the Boston & Maine Railroad, about 80 per
cent. This stock was exchanged, share for
share for stock OF the New Haven, but owing
to the enactment of the anti-merger law by the
| jected consolidation before July 1, 1908, the &C
auisition of additional stock was suspended.
D-:ATH BLOW TO MERGER.
The New Haven and the Boston & Maine are
connecting systems and not parallel and COM
peting, but the proposed merger aroused much
| opposition throughout New England and, as al
ready noted, not long after the passage OF the
anti merger act the New Haven began to con-
,vI "a
special commission referred to reported in favor
| of the merger it was by q majority OF only one.
and the II -islature has yet taken no action
regarding the extension or repeal OF the anti
| merger act
In addition to the uncertainty to the Legis-
| latures position concerning the merger, the New
Haven has seen in the decision of the Massa-
chusetts Supreme Court May 8, holding
| illegal the company's control of certain trolley
| roads in Massachusetts, a further reason for
| considering the step OF divesting itself OF the
| ownership of the Boston & Maine stock, Vice
| President Byrnes saying:
| we believe the principle enunciated by the
| court applies we'll to the holding of Boston &,
| Maine stock by the New Haven company and
| that it will be necessary for the company also
| to dispose OF this stock unless the Legislature
decides that it is consistent with the interests of
the commonwealth that it should be retained"
Added to these considerations is the fact Of the
| institution Friday of the government pro-
ceedings to prevent the New Haven from exer-
cising any control the Boston & Maine,
which may be supposed to incline the New
| Haven management to early consummation of
| the reported negotiations with the Delaware &.
| Hudson 1t would appear that the Delaware &
| Hudson is in position easily to take over the
| Boston & Maine stock, as only a fortnight ago
! the stockholders authorized $50OOOOOO bond
issue, of which $4,000. 600 is to be used in retir-
| ing outstanding bonds and notes and in provid-
| ing for floating debt.
The Delaware & Hudson operates line ex-
! tending from Albany .and Troy westward to
| Binghamton and to the heart of the anthracite
coal region of Pennsylvania. and northward to
| Rouse's point. n. Y, whence it reaches Montreal
| over the Grand Trunk. 1t is, however con-
stretching line of its own to Montreal, which
will ultimately be extended to Quebec. Control
| of the Boston & Maine, which through its con-
| trolled line. the Fitchburg. reaches Troy. would
| give the Delaware & Hudson a direct line from
Montreal and from the anthracite coal district
| to Boston and TO the extensive manufacturing
territory which the Boston & Maine system
serves The New York Central it should be
remembered, also has line to Boston in the
| shape of the Boston & Albany, but the relations
| between the Delaware & Hudson and the New
| York Central have always been close, and II
may be assumed that the Central,s interests
will be safeguarded in the arrangement for
| transfer of the New Haven's Boston & Maine
stock to the Delaware & Hudson.
| BAD FOR DELAWARE & EASTERN ROAD
The position of the Delaware & Eastern Rail-
road in view of the reported probable acquisition
| of virtual control of the Boston & Maine by the
| Delaware G. Hudson. presents interesting
| question This is a road the short completed