New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-04-25
Eastern Agreement Extended.

The agreement announced yesterday. un-
Ger which the New Haven road takes over
| the operation Of the Boston & Albany and
assumes one-half Of its yearly deficit. all
OF which heretofore has been borne solely
by the New York Central, the lessee COM
pany extends the agreement announced by
President Mellen on March IS. At that
time he said that the New Haven had en-
tered into arrangements with the New
York Central looking to an increased traf-
| fo by way Of the Boston & Albany juno
tons and would in the near future perfect
arrangements by which 1t would run Its own
| trains with its own power over parts Of the
Boston & Albany lines
Under the new arrangement which fol-
! lows the recent transfer by the New York
Central to the New Haven Of one-half OF
road. considerable rerouting Of traffic
will be made, with the object of effecting
savings for both systems. Boston and
| Maine freight destined for New York City.
for instance. which Is now sent TO Troy
over the Fitchburg road and there deiv-
cred to the New York Central will proba-
bly, In future be sent via Palmer and
| Springfield over the Boston & Albany and
! the New Haven.
The Boston e. Albany. which, IL is noted
in the dispatches. has had a deficit each
year since 1t has been controlled by the New
York Central, is leased by the latter for
nlnety-nine years under a guarantee OF S
Per cent yearly dividends on its s25, 900, 900
stock. The original proposition was 10
lease II for 999 years. but opposition de-
,eloping among the stockholders. which
took form in the appointment of protec-
tive committee. the New York Central
! agreed TO lower the period Of the lease 10
nnety-nine years. and also to pay for GER
! tain real and personal property not includ-
! cd in the lease s5,500.000 IN Its 3Ia per
cent debenture bonds, instead OF $4,000 0Oo,
as In the first plan. The yearly return 10
the Boston & Albany from the debentures
| is a tri1e over :. per cent on the capital
stock, which thus receives each year So.
Ter cent dividends.
| Prior TO the leasing OF the Boston & Al
| hany. the New York Central had endeav-
! ored to lease the Fitchburg road. running
| from Boston TO Troy, but its offer was de-
clined and the road was soon afterward
leased on more advantageous terms TO the
Boston & Maine for ninety-nine years
! w c. Brown. president Of the New York
Central Lines. issued a statement yester-
! day, in part, as follows
The New York Central company will
operate the Boston g. Albany Railroad as a
separate property under the charge and
! direction Of a general manager to be ap-
| pointed by the New York Central company,
with its general offices at Boston James
II: Hustis; as general manager. located "a at
! property and will appoint his own STAN
| officers.
| 1t has practically been determined that
/ present traffic. operating and legal depart
! ment officers will be continued in charge
I of their respective departments, but they
| will report direct TO General Manager Hus-
/ tis instead Of TO New York. AS heretofore.
/ Mr. Hustis will report 10 and receive in
structions from the president OF the New
] York Central.
The entire arrancement Is I'm the direc-
| ton OF improving the transportation faclli-
| ties of New England by increasing the
traffic moving on direct routes via Boston
e. Albany junctions.