Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1911-02-24
OWN RUTLAND ROAD
New Haven System Buys Con-
troll from New York Central
important Strategic Move In Big Fight
Against the Grand Trunk-Connectons
Which the Rutland Makes.

President Mellen of the New York.
New Haven & Hartford and Boston &
Maine railroads stated Friday that par
ties in the interest of the Vermont Val
ley Railroad company have acquired
23,52Oa preferred shares of the Rutland
Railroad company from the New York
Central road.
The object of the purchase, according
to Mr.. Mellen's statement, is the acqui-
sition, in the interest of the Boston &
Maine railroad system, of route TO
Burlington and Montreal by way OF the
Rutland road. The stock acquired is just
one-half of that owned by the New York
Central. The latter is said to have ac-
ouired its interest in the line largely
from DR.. Seward Webb some years ago.
The Vermont Valley Railroad company
is a corporation of Vermont controlled
by the Boston & Maine.
Mr.. Mellen's statement further says:
THE conditions heretofore surrounding
the use by the Boston e. Maine system
of one of its principal routes to Montreal
have latterly become such that 1t was
not deemed advisable to be further de-
pendent upon their continuance Inc
acquisition of this interest extends the
line of the Boston & Ma inc practically to
the great lakes at Ogdensburg, and by
connection with steamboat lines, con-
trolled by the Rutland Railroad ana oper-
ating on the lakes, to Chicago and the
West, thus enabling the Boston & Maine
to assure to the port of Boston larger
percentage of the grain carrying trade.
This transaction also enables the
Boston & Maine to connect at another
point, and with a long haul upon lts own
line, with the Canadian gran-carrying
roads, assuring more permanently a par
ticipation in the export grain business OF
those roads by way of Boston.
treaty of reciprocity
between Canada and the United States
has largely influenced those in control of
the properties to make this investment,
because their hope to secure larger
participation in the revenue from TINS
business through a longer haul and es-
peciallv because of their desire to pro-
mote the interests of the trade of the
port of Boston"
THE lines of the Boston & Maine and
the Rutland are complementary and sup
Elementary, one to the other, and are in
no sense competitive, and the service by
the two lines should be augmented ana
promoted as a result.
The significance of the new purchase OF
Rutland railroad stock by what is prac-
tically the New Haven road lies in the
fact that it is a counterstroke against the
entry into New England by the Grand
Trunk through its proposed extension OF
the Vermont Central from Palmer, Mass
to Providence. The important parts OF
the Rutland are those extending north
ward from Rutland and the line from
White Creek 161 miles, reaching north
ward to Noyan Junction where, ownlnt
traffic rights, it connects with the quebec
Southern and Canadian Pacific over {
line SO miles long, to Montreal. Tit
Grand Trunk Southern extension of thu
Vermont Central is thus contained be
tween two converging lines, which VII
allow of transfer of Boston & Maine anC
Af1,,t -A, IOItf
land also has westward business over 1t
Ogdensburg line, and owns the RUTLAND
Transit company, which has a fleet o
vessels from Ogdensburg, N. Y, to lax
ports. While the figures are not give
out officially, It is reported that the act
ual cost of the half interest in the Rut
land was $2,500,000
The Rutland railroad is one of the old
est lines in New England. 1t owns 80
miles of track, leases 1877 miles, and Oper
ates 5S miles under trackage rights,
The road until 1905 was operated as a
independent property, but at that time
majority of the preferred stock was take
over by the New York Central and Tn
road has since been operated by a sta
made up chiefly of New York Central OF
fcials. The common stock outstandin
amounts to $199,400 and the preferre
stock, which is 7 per cent cumulative,
$9,O57,G co., making a total of $9,257,0 90
The road has paid no dividends sine
1907, when it paid ~ per cent on II
preferred stock.
The preferred stock carries accumula'
ed dividends through many years pas
the deferred dividends now amounting
nearly 200 per cent. The funded debt
81, 402 900 The earnings of the late
available year, 1909, were $3,102432 gro
and $839,071 net. The fixed charges
the road are about $685., 900, and in 1909
earned a surplus over charges Of a lit
more than $1,000