Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1911-04-25
coNrRoL PASSES July /.
officers Retained and Capaeity-Littfe
Stir in Financial Circles.

| Boston, April 24.--What is supposed
| to be another radical step toward ulti-
mate consolidation of New England
railroad lines was taken today in the
| announcement as a result of q con-
| ference in New York. that the New
York. New Haven x Hartford Rail
read viii assume half the annual de-
| felt OF the Boston & Albany railroad,
row under lease TO the New York Cen
trail.
In return for assuming control Of the
| Boston e. Albany, those stockholders
are guaranteed per cent. dividends
the New Haven is to divide the surplus
above that amount. when the road be-
| gins TO earn il.
| TIE control of the Boston & Albany
| passes into New Haven hands on July
| and James II. Hustis. at present as
| sistant general manager, will become
| vice president and general manager OF
| the Boston & Albany
| II is also stated that w. c. Brown,
pIesid4ft of the New York Central,
will continue to act as financial head
of the Boston & Albany in New York.
The Boston & Albany railroad was
leased to tire New York Central ~
wears ago and since 1903 the annual
deficit has ranged rom s239,S20 in that
year to s1.927, 49, in 1907 The deficit
| last year was $57S,337
Prior TO the announcement today
there have come to light within the
last few weeks three other distinct
evidences of tie growing affiliations
of .ha New Haven and the New York
Central system. :. The first was the
| Arrangement by sfhe two system for
| a Joint ownership of the Rutland "
! Albany Railroad, the second was the
granting by the Boston & Albany o.
important passenger and freight ser
vice to the New Haven. while the
third was the statement that the
Boston K Maine Railroad, also con-
trollcd by the New Haven and per
feoted arrangements for the trans
portation of through passenger ears
10 Chicago over tie Lake Shore &
Michigan Central lnes.
When the Rutland joint control ar
! rangement was announced six weeks
ago, it was followed by a denial from
/ the New Haven officials that 1t was
a steo toward unihcation. Even when
| the Joint passenger traffic agreenle mt,
/ in which the New Haven obtained val
liable concessions from the Albany,
! was made public, the unitication plan
/ found No support froni New Haven
quarters. But State street. which has
. helped both roads in a financial way.
was convinced that despite the denials
and despite the claim that any trans
| fer of the lease of the Albany from
! the New York Central to the New
Haven would be unlawful, some AZ
rangament would be perfected which
would bring about a practical con-
solidation of all New England rail-
| roads outside If the Central Yer
mont, the Canadian Pacific and the
| Bangor & Aroostook.
| The announcemey1 t9day occasioned
very little comment III Boston finan-
cial circles. On the local stock ex-
/ change New York. NeE Haven &
! Hartford dropped l to 145 but there
We're NJ sales up to noon of Boston
& Albary the last quotation on which
Saturday, was 219 bid.
| Local merchants expect that under
| the new arrangement the New Haven
officials wifi be able to improve
| through service from Boston to the
Wesr, with two direct trunk lines.
| Among the minor agreements in
| connection with the agreement is the
| statement that Vice President Hustis
| will have authority under the drec-
| ton CT the New Haven officials over
the operating. traffic, accounting.
legal, purchasing. equipping and
maintenance departments of the AL
hany. While II. NJ. Biscoe. at present
/ assistant freight manager, will he
made traffic manager.
| 1t is understood here that the New
/ ven-Albany arrangement in no way
| invtlves any operating control by the
| former over the latter. Il is rather
| intended. it as said, to interchange
much traffic which now follows round
about channels. At present for In
| stance, Boston and Maine freight
| from New York City. is sent to Troy
and there turned over to the New
! York Central. BY the new arrange
nent the Boston & Maine viii DE
able to route freight via Palmer and
i Springfield, while northbornd freign,
for Maine and New Hampshire points
would add materially to the revenue
Of the Albany.
The New Haven stock toek another
drop this afternoon to al IL on sales
| of snail odd lots.