The Bridgeport evening farmer., 1911-04-25
MELLEN TIES
UP To B. & A.
Assumes Half the Task Of
Paying Eight Per Cent.
Dividends
WILL GET HALF OF PROFITS
Closer Alliance Between
New York Central and
New Haven for New Eng
land Traffic.

Community of interest among the
railroads of New England, which has
been of gradual development for sew
New York, New Haven & Hartford
into joint control over the Boston &
Albany, which the New York Central
has held under lease for ten years.
The arrangement between the two
dominant New England railroad in
terests for the operation of the Bos-
ton & Albany, details of which were
made public yesterday, follows sew
eral moves in the direction of unifica-
ton within the past few weeks. 1t is
only three weeks since it became
known that these two big sys-
TENS had arranged for joint ownership
of the New York Central's Rutland
railroad. This news was followed by
the announcement Of concessions to
the New Haven of important passen-
ger and freight facilities over the Bos-
ton & Albany, and later by the perfec-
ton of arrangements between the New
Haven and the New York Central, by
which New Ravens controlled line,
the Boston & Maine, is to be permit
ted to transport through passenger cars
to Chicago over the Lake Shore &
Michigan Central lines. which are
part of the New York Central sys-
tenn.
Arrangements now in force between
the New York Central and New Haven
system put practically the entire New
England railroad field into their joint
control. and they have the same bank
ing affiliations in New York. 1t was
the banking interests which brought
about the agreement in relation to the
Boston G. Albany.
Assumes Half the Deficit.
Under the terms of the joint control
agreement the New York, New Ha-
ven & Hartford assumes response
bility for half the deficit now an
nually the result of the Boston & AL
bany's operations after the payment
of the per cent, dividends guaran-
teed on it's stock by the New York
Central and in return is to receive
one-half of the surplus above the div
idend requirements should a surplus
be earned. BY reason of the large
amount of traffic which will be d.
verified to the Boston & Albany by the
New Haven, it is confidently expected
that the New York Centrals subsi-
diary will soon begin to show a profit
above the guaranteed dividends.
Since 1903, the Boston & Albany's de-
felt has ranged yearly from $239 500 to
$1.927837 in 1907. Last year the de-
felt was s57S,337. Financial control of
the Boston & Albany will remain with
the New York Central. and w. c.
Brown, President of that system, will
remain it's President, but active man
agement of the line will be from Bos
ton. The new arrangement will be-
come effective on July 1, when James
H. Hustis, Assistant General Manager
will become Vice President and Cen
eral Manager, and as such will have
full control of operations.
President Brown of the New York
Hn,,f y-1I Ia1S
night which confirms this report of
the arrangements. and President Mel
len of the New Haven explained the
advantages which would accrue from
the joint control. He said:
''The Boston & Albany has for many
years cost the New York Central a
large sum of money in the way of a
deficit after paying the rental provided
for in the lease. 1t was desirable that
this deficit should be reduced pos
sibly eliminated and probably turned
into a profit, and to secure this result
the cooperation Of the New Haven
was desired, because the latter conn
pany had a large amount of business
it could easily put over the Boston &
Albany road If sufficient inducement
were made it so to do.
The Inducement.
''That Involvement was made by
giving the New Haven half interest
in the net results from the operation
of the Boston & Albany, and it is be-
lieved the New Haven can secure to
the Boston &c Albany a sufficient busi-
ness to wipe out the deficit accruing
from it's operation. and, indeed, Sc
cure a profitable return from that
operation in the future.
In connection with this new policy
note the diversion from the New Ha-
ven of the Bar Harbor express, the