New-York tribune., 1911-02-18
BUYS RUTLAND STOCK
3. & NJ. Interests Acquire Half
N. Y. Central Holdings.
RECIPROCITY A REASON
Desire to Bring Grain Trade to
Boston Influenced Purchase.
Saws President Mellen.

New Haven. Feb. 17-President Mellen OF
the New York. New Haven & Hartford
and the Boston d Maine railroads said this
afternoon that Vermont Valley Railroad
| Companv interests had acquired 2352o1s pre-
ferred shares Of the Rutland Railroad Com
many from the New York Central.
The object OF the purchase, according to
Mr. Menen's statement, is the requirement
in the interest OF the Boston q Maine
Railroad system of a route tn burlington
and Montreal 5y way OF the Rutland road
The stock acquired is lust one-half OF that
owned b. the New York Central. The Yer
mont Valley Railroad Company is a cor
poraticn of Vermont controlled by the
Boston e. Maine.
The lines of the Boston & Maine and
/ Rutland are complementary and supple
mentary one to the other. and in no sense
| competitive.
THE conditions heretofore surrounding
! the use by the Boston & Maine system OF
| one OF it's principal routes TO Montreal
! have latterly become such that il was not
| deemed advisable t. be further dependent
| upon their continuance" said Mr.. Mellen.
THE acquisition Of this interest extends
! the line of the Boston & Maine practically
| to the Great Lakes. at Ogdensburg. and by
connection with steamboat lines con
/ trolled by the Rutland Railroad operating
| on the lakes 10 Chicago and the West
/ thus enabling the Boston & Maine to as
! sure to the port of Boston larger per
centage OF the grain carrying trade.
This transaction also enables the Boston
| & Maine to connect al another point anc
/ with a long haul upon its own line, witt
! the Canadian grain carrying roads, assur'
| ing more permanently a participation II
the export srain business of those road'
/ by way Of Boston.
The proposed treaty Of reciprocity be
| tween Canada and the United States mas
| largely Influenced those in control OF th'
properties to make this investment, because
1 Of their hope TO secure larger paruclpa
ton in the revenue from this business
through a longer haul and especially, also
because Of their desire to promote the In
terests of the trade of the port Of Boston
The New York. New Haven & Hartford
system, although dominating the New Eng
land railroad field, has no direct outlet lnt'
Canada other than the Boston & Name
line running as far north as SherorooKe
/ Quebec Its new Arrangement with tn
New York Central may perhaps be regard
! ed as a counter move 10 the activities
the Grand Trunk Railway of Canada, whicl
through its control of the Central Vernon
/ Railway traverses New England to New
1 London. Conn. and, despite energetic op
position from the New Haven, got permis
sion about a year ago to build line iron
Palmer. Mass on the Central Vermont. Il
Providence The Grand Trunk also reache
Portland, Me: Chicago. Detroit and varlou
other cities of the United States.
/ While the figures are not given out OF
fcially, il is reported that The actual eos
of the half interest in the Rutland ha
been s.. 800, 900. The Rutland is one OF the old
est lines in New England. 1t owns 80
miles of track, leases 15 miles and operate
| IS miles under trackage rights.
The common stock is sls9, 900 and the pre-
ferred stock per cen, cumulative $9O5',6f
making a total Of 9,257,ooo. The road ha
paid no dividends since 1907, when 1t pai'
IL per cent on preferred stock
The preferred stock carries accumulate
dividends through many years past whic
now amount to nearly 600 per cent. Tn
funded debt is 81. .402, 600 'rhe earnings o
the latest available year 1905 were S,lo2,
4S2 gross and $3.50, OIL net The fixed charge
of the road are about $4,000 and in tn
year 1903 ii earned q surplus over charge
of a little more than s200D