Norwich bulletin., 1912-12-27
NEW HAVEN ROAD
 WILL SELL BOATS
Unless Commerce Commission Author izes Their Holding, Says President Melien.

Unless the interstate commerce com- mission authorizes the holding of steamboat properties by the New York, New Haven and Hartford rail- road, every steamboat line controlled by that company down to the very last propeller blade, thereby includip~ the boats operated from New London, will be sold by the New Haven, probably within the coming year, and the sale will be a bona fide transaction by which the New Haven will absolutely rid itself of every piece of floating stock except that used directly in con- nection with the railroad business, ac- cording to a statement made by Presi- dent c. S. Me!len.
 The proposed transaction, which will involve the millions of money the New Haven has put into the acquisi- tion of steamboat lines plying between New England ports and between New England, New York and other Atlantic coast points, will not, as officially stat ed, be merely a transfer of these "rop- critics to a company that will be prac- tically owned and surely controlled by the New Haven system. According to Mir. Mellen, the lines will be disposed of; in fact, the company will attend strictly to the business of running a railroad. MT. Mellen was asked if he cared to make any comment on the report of Commissioner of Corporation Luther Conant, Jr., to President Taft. in which the commissioner said that the New Haven road had pursued a policy of suppressing competition on Long Island sound and that many of its recent purchases could be laid to that policy.
 In reply, Mir. Mellen said he did not care to make comment on the com missioner's report at the present time. He probably had good reason for de- clining to comment on government report just at this time, for he has a little affair with the government in New York which will occupy his per- sonal attention and the attention of the eminent legal advisers of the road for some time to come.
 But MT. Mellen, after saying he did not care to speak of the Conant re- port, said: 'We are to sell our steam ship holdings under the present law in 1914 unless they are authorized by. the interstate commerce commission so our interest will soon be lost in this matter"
 
 New Haven are numerous, and then there are a number of other lines In which the New Haven has large stock holdings such as the Merchants and Miners Transportation company out of Boston, in which the road owns stuck, but does not hold control.
 As stated by the president of the New Haven a few days ago, many of the steamship lines, at least those ply ing between ports in this state and New York city, came to the New Ha- ven at the time it took over the rail roads that had been operated by the New Haven under lease He pointed out at that time. too. that the steamer lines were not paying propositions fl 1 operated independent of the railroad | but they could be made payable with | the cooperation of the railroad and would serve the railroad as means ot relieving the congestion of its freight | business.
 l Just before the fiscal year of the ! New Haven closed on June 30 last 1 the New Haven Steamship company l was organized to run the steamships on Long Island sound formerly oper- ated by the New England Navigation company. The capitalization of tn, New England Steamship company wa! | jumped up to s6.000,000 to pay for tho steamers taken over from the New England Navigation, but the stock! and bonds of the New England Steam. ship remained, however, in the treas | ury of the New Haven system. It wa. a change of name of the operatinp con ! cern, but not change in control O the properties.
 But the proposed sale of the steam ship lines of the New Haven is not tt be that sort of a transaction, as statet on the best of railroad authority. Tn road will divest itself of every bit o its steamship holdings and in such way that there will be no room fo doubt that the company has gone ou of the steamship business
 Reference made to the Merchants and Miners Transportation compan, was merely incidental, for the Ney Haven owns large blocks of stock fl other marine enterprises touching a New England ports. For instance, tn New Haven owns S2,302,500 of tn common and preferred stock of tn Eastern Steamship company and S2. 437,6O0 of the same concerns frs mortgage bonds, according to the las annual report of the New Haven. How ever, 1t Is claimed by the New Have company that it does not control tn Eastern Steamship company. It claim not to have voice in the manage ment of that concerns affairs. In sup port of this statement there are no in terlocking directors. That is, none c the directors of the Eastern is a di rector of the New Haven railroad.
 It is understood that negotiation are pending for the transfer of tn New Haven's marine lines to an in dependent concern, but this repor could not be verified at the genera offices of the company. While sue
 negotiations may be in progress. ac cording to the statement of the hea
 of the road, they could not be close and become effective for a year g | least