The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1912-02-21
WANTED RUTLAND
BECAUSE OF THE
GRAND TRUNK
Canadian Company EncrOaCh-
ments the Cause
MELLEN FRANKLY SAYS so
Head of the New Haven Road and
President Of New York Central
Called as Witnesses

Albany, Feb. 2O.-Wllllam =. |
Brown, president of the New York |
Central railroad, and c. S. Mellen,
president of the New York, New Ha-
ven and Hartford railroad, were be-
fore the Public Service Commission
today having been summoned tol
throw light upon the proposed sale
of majority of the Rutland railroad
stock by the Central to the New Hav-
en- company and the sale Of major
ity of the stocks OF the New York,
Ontario & Western railroad by the
New Haven road to the Central. In
opposition to the sale OF the Rutland
stocks the minority stockholders were
represented by Samuel Untermeyer.
AT a previous hearing on the appli
cation Of the purchasing companies
for permission Of the state to carry
out the plan the declared purpose OF
the transaction was given by several
officials of the Central and New Ha-
ven companies. 1t was stated that
the New Haven desired the Rutland
to give 1t line from Boston to Mon
treal in connection with the Boston
& Maine. The Central's desire for
the Ontario e. Western was to get
route to the coal fields. The commits
sion was not satisfied with the infor-
nation obtained on the former hear
ing and fixed the hearing for today to
secure supplemental facts on which
1t might base its decision.
When Mr.. Mellen was called to the
stand Mr.. Untermyer raised the ques-
ton as TO whether or not Messrs.
Mellen and Brown might claim immu-
nifty because OF their testimony be-
fore the commission. Mr.. Untermy-
er declared that the transaction IN
volving the Boston and Albany, Onta-
rio and Western and Rutland roads
was a violation of the Federal anti
trust law. Chairman Stevens of the
commission said that Mr.. Mellen was
produced by the applicant company
on It's voluntary motion.
Mr. Untermyer made 1t plain that
he was working for the sale OF the
minority stocks of the Rutland at the
same favorable price which the New
Haven company had offered to the
Central for the majority stocks. Mr.
Mellen said the minority stockholders
would receive a great benefit through
New Haven control.
THE Rutland will not only be a
useful link in the New Ravens sys-
TEN. Mr.. Mellen said, but it will be
profitable TO its stockholders" He
: declared that there was no commun
ity OF interest between the Boston &
Albany, New Haven, and Rutland
plans.
The Ontario & Western property
MIR. Mellen said, had deprecated In
p value in the last five years. He knew
OF but one way of estimating values
and that was by sales. Sales in the
market, he added, indicated reduc
ton in value OF Ontario and Western
stocks.
When Mr.. Untermyer asked as &c
the value Of the Rutland stocks Oh
" the same basis Of reasoning, Mr. Mel
J. len said:
The test OF value of control is one
I thing; the test of value for market
quotations Is another"
!, He said he thought the RUTLAND
= control was worth more to the New
J. Haven than to any other road. ant
that the New Haven would be justi
ned in paying a high price for con
G troll.
Mr.. Untermyer questioned Presi
dent Mellen concerning the Joint ar
y rangement between the Central ant
> the New Haven as to the Boston an,
G Albany railroad. He declared tn,
: New Haven road had nothing to sa,
u as to control. The management, h
y explained, was under the control O
the Central. That management. h
/ added, could cut rates all over In
l. Boston and Albany road. "and cal
e only sit In my chair and growl; tina
e is not control"
y The Rutland road, Mr. Mellen said
: would be valuable as against the er
9 croaohments Of the Grand Trunk raj
e way, lie regarded the proposed q,
,, tension as inevitable, but that IN
q New Haven would be In much bette
y position II II had a line II could us
u instead OF the Central Vermont Tn
u Rutland, he said, would be strenctl
g ened by the deal more than any othe
Ie line. "' o'"e