Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1911-04-25
Ih.Y.,h.H. & H. Line Will Assume
Half B. & A. Annual Deficit.
Probably Another Step Toward
Consolidation Of All n. E.LineS.
Means Only Partnership In Finan'
ciaI Results, Says Pres. Mellen.

Boston, April 24.-The railroad map
| of New England was further revised
today in the direction of what many
consider ultimate unifcation for q
greater portion of the district, when
| the announcement was made that a
still closer bond of unity had been ar
ranged between the New York, New
Haven & Hartford and the Boston &
Albany Railroads. without disturbing
the terms of the lease of the latter
road to the New York Central Rail
road.
For the present the tie between the
two companies is largely a financial
one, the New Haven assuming after
July l, half the task of paving s per
cent dividends to the Boston & Albany
stockholders and in return receiving
| from the New York Central half in
| terest in the net results of the opera
tion of the Albany
Certain traffic arrangements between
the two roads, negotiated a feH. weeks
ago. are expected to become closer.
President Mellen of the New Haven
Road, was in the home office when the
plan was made public. but immediate
ly confirmed the report and followed
it with this statement:
THE agreement contemplates in no
way any control of the management
or interference with The Boston & Al
bany Railroad, but does make the New
Haven partner in the financial re-
suits achieved by the management of
the property. II is believed the New
Haven can secure to the Boston & Al
bany sufficient business to wipe out
the deficit accruing from its operation
and indeed secure "a profitable return
from that operation in the future.
In connection with this new policy
note the diversion of the Bar Harbor
express, the Portland express and the
American Express trains from the
lines of the New Haven to the lines of
the Boston e. Albany between Worces-
ter and Springfield. These are heavy
and profitable trains and will give the
Boston e Albany a very considerable
additional revenue.
Other pieces Of the Boston & AL
bany lines will be used by the New
Haven trains on a satisfactory rental
basis, giving to the Boston & Albany
a considerable additional revenue. 1t is
believed.
Additional train service is in CON
temptation from different parts of the
New HfVen system to the Boston &
Albany
WhII state street professed not to
be sY prised at the new arrangement
toda}. still New Haven stock quickly
fell 40 Ill, the lowest in several years
The trend toward closer relations
between the two roads has been going
on for some time, principally from the
fact that the financial interests OF the
New Haven and the New York Gen.
tral, center in certain financial houses
in New York and that at least three
financiers are directors in both roads
Negotiations for the New Haven
Boston & Albany agreement were
therefore carried on in that city, while
the business details We're worked out
here.
1t is understood that the meeting was
similar to those in which half the con-
troll of the Rutland Railroad was turn
| ed over by the New York Central to
| the New Haven, the agreement for
| closer traffic arrangements was reached
and the plan worked out which en-
abled the Boston & Maine to send
| through passenger cars to Chicago
over the Lake Shore.
| At the time of the announcement of
the joint traffic arrangements, it was
stated by the New Haven officials
that it was not the purpose to make
that step toward absolute control OF
the Boston & Albany.
| 1t was stated today that the new
plan contemplates cooperation be
tween all the lines, that the new West.
ern business may flow more freely
| over the Boston & Albany system, ant
| reduce the annual deficit. That defici
has ranged from $4,000 in 1903 to 81
100000 in 1907 and reached half a mil
lion dollars last year. With the Bostor
& Albany under the direct manage
ment OF Assistant General Manager
James H. Austin, who is made vic
president and general manager, anC
indirectly under that of the New Hav
en- officials, only three railroads remain
outside the New Haven influence i,
New England, the Vermont central
controlled by the Grand Trunk. tn
! Canadian Pacific which crosses north
ern Maine and Vermont, and the Ban
gor & Aroostook, the outlet for tn
potato crop in Maine.
J President William c. Brown of the Ne,
1 (cOutinre1 on paoa Jr;ol,+A