The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1910-03-28
GRAND TRUNKS INVASION
OF New England and the Underlying
Meaning Of Il All

an axiom OF railway development
that any extensive absorption of pro
ductive territory by a railway system
is sure 10 be followed by an incur
sion of a rival Stated more briefly,
profitable monopoly challenges com
petition. The time and nature OF the
competition and the direction from
which IL NAV come varies Infinitely
But II is pretty sure 10 come from
somewhere or at least, be threaten
ed. The New England situation is
the latest illustration of the princi-
pie. Not long ago the New York,
New Haven & Hartford. BY securing
control OF the Boston & Maine, join
ed southern and northern New Eng
land and six states with high produc-
tive power in first class freight bus
mess. and with high passenger densi-
ty, In a single monopoly. But hard
ly Is 1t consummated when the Grand
Trunk applies to the Rhode Island
legislature for kind Of omnibus"
charter for line to Providence. The
Grand Trunk proposes to build from
is Central Vermont line at Palmer.
Mass. The proposed charter, as of
ten in such case, asks for more than
the applicant expects to get. 1t
seeks not only powers of local ex-
tension in Rhode Island, but special
privileges in the use of the New Ha-
ven's great plant in that state.
The story of the immediate facts
leading up to the situation is, in
some respects more interesting than
the situation itself. In the late
months of the year 1906 the New Ha-
ven made what was, in effect, traf-
fic alliance with the Canadian Paci-
fic by which all-rail business from
New York City to the West was Sc
cured at rates competitive with the
Grand Trunk, which takes freight by
boat and rail by way of New London
and at much lower rate than that
of the standard trunk lines. The
alliance was, in practice, only effec.
tive during the CLOSED" months of
the lower lake and rail rate. But it
got New York business on a consid.
cradle scale and shook up seriously
the whole west-bound rate status.
The usual conferences" of presi.
dents followed But the stress of
a threatened trunk line rate war did
not relax until recently, when, I'M
der the threat of reductions by the
Erie and the I.ackawanna, the New
Haven receded to avoid the prospee-
tive war, and not only yielded its
Canadian Pacific alliance, but raised
its rates over the Ontario & Western
to the basis of IS cents that of the
standard lines.
The Crank Trunk, however, yield
ed nothing to the demands of the
Erie & Lackawanna. though it was
included in them. 1t saw the men,
ace to its New England business by
the friendly relations of the New
Haven with the Canadian Pacific and
a menace not diminished by the New
Ravens control of the Boston &
Maine Accordingly the Grand
Trunk seems to have elected an ag-
gressive policy. It's first step was
the substitution last July of its own
boats for those of the New Haven
between New York and New London.
It's second step is the application for
the Rhode Island charter of the Pal
mer-Providence extension. Accord
ing to statement by Vice President
auckland the New Haven will, in de-
ference to Rhode Island business
not oppose an ordinary
charter, but confine itself to resisting
one granting special privilege. Mr..
auckland says IF the proposed
charter to be granted to the South
ern New England Railway company
is the bona fide desire on the part
OF a reputable. solvent corporation
to enter Rhode Island it would be
useless and foolish for me to attempt
to stop it, for it would be obviously
for the interests of the state of
Rhode Island"
Such is the contest as it appears
behind the scenes. In the back.
ground there are unseen forces and
factors of greater moment. The
prime ambition of the Grand Trunk
for years has been to obtain by traf-
fic agreement a New York terminal
for through allrail business and the
New York, Ontario and Western has
been of late its chief objective. A
year or more ago during the trunk |
line conferences then In progress
here was a credible report that the |
irand Trunk offered the New Haven |
he surrender of its southern New |
England rail connection in return for |
similar concession involving the |
Ontario and Western. The Rhode |
Island charter, with its potentialities
nus appears in fresh light. 1t can
be used actually to build a new com.
Deting route or as a big stick" to |
secure concessions or for both.
And If coupled with a Providence |
New York boat line it becomes a
new, not to say disturbing, element |
N the trunk line business. There |
are modifying facts. A year or two
At least must elapse before the new
Inc can be built. It must be a line |
Of the lion bridge" type, not of
Tumified branches and extensive To- |
cal business. But even as project |
t complexities situation not limited |
% New England. 1t will be interest. /
ng to observe whether hereafter.
With charter granted, that charter
S used concretely for new line or
Is club to eXtort CONCESSIONS
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