Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1912-05-02
MELLEN EXPLAINS
VALUE OF RUTLAND
Says Railroad Is a Natural Part
Of the New Haven
System.

Boston, April 3o-President Charlie. Z
Mellen, as president of the New Haven.
Boston & Maine and Maine Central nau.
road companies. addresses the followin,,
circular to the STOCKHOLDERS of the Ru,
land railroad.
The New York. New Haven & Hart
ford Railroad company has applied 10 tlo
public service commission of the st,.o
of New York for the SECOND district for
approval of the purchaso bv # of stocl.
OF the Rutland railroad held hv tho Now
York Central.
a rehearing Of this application has bnc,
ordered Oy the commission on Ma, o. ga,
two o'clJck at Albany One rurnoeo ~
this rehearing. as shown by tho order q
copy of which has been mailed TO va,
Is to permit stockholders to EXPRESS thor
views as to the effect of the erautifr oe
This application on their interests
Under the circumstances. ! think won
are entitled TO "A brief statement Of ,rha-
have commended and as now advised
should recommend to the directors or th,
New York, New Haven G Hartford Rau-
road company with regard to the ro.a-
tons Of that company to the Rutland
railroad
! The Rutland railroad in my onlnion ;.
|
! trail system. on the other hand IL would
be natural part Of the New n ven .v.-
TEN. Under the Same managcmeut as ~.
Eew Haven. the Boston K Main. and th..
Maine central II would form IL natlral
extension of these railroads 20 Montreal
ana other Canadian point. and also. Nv
way or Osdensburg and tho lakes IA ont.
caso and other western points.
ONLY WAY To ACQUIRE IT
The only way to bring the Rutland
railroad under tho same management, A.
the other New England railroads is f..
the New Haven to acquire the stock of
that railroad held by the New Yori-
central In the nature of the case, = Is
impossible to do this except vs. paying
the New York Central what that stock
has cost it, including interest charge
and deducting dividends
Upon my advice, the New Haven dirac-
tors have voted subject to the approval
of the New York public .oryicc commits
sion. 70 pay 70 the New York Central
what its control of the Rutland cost t..
for the purpose Of transferring the man
agement of the Rutland from the Central
TO the New Haven, 50 that tho Rutland
| may be operated as a constituent par.
| of the railroad system now composed o.
| the New Haven. the Boston * Maine anu
the Maine Central railroads.
If the granting of this application b.
the commission should be coupled with
| condition that the New Haven must Of
fer TO purchase all of the stock of tn.
Rutland railroad. I should not advise IN.
directors TO accept this condition.
! If ! am correct in the judgment that
! the Rutland. under the management of
myself and my associates. would do murh
more business than It is likely to do as
d part of the New York Central system.
every stakeholder of the Rutland railroad
will realize equally with the ma jority
holders a proportionate benefit from the
! increased net earnings of the increased
! business.
CANNOT BE MADE TO BUY STOCK.
If It were not my judgment that tho
Rutland railroad as a part of the New
Haven system Will show increased net
earnings. | should not have advised tn"
purchase Of q controlling interest IN rs
stock. but until I have had an o0-
portunity to demonstrate the correctness
of my judgment l am not willing 10 adj
wise a larger capital expenditure for the
acquisition Of other stock.
Any statement made to YOU by any one
that the question at issue before the COM
mission Is as to whether you shall re.
ceive sos a share for your stock. or any
other price whatever for your stock. IS
an entirely misleading one. No decision
Of the commission could secure an offo-
Of purchase from the New Haven COM
pany for this sort
The only practical question for your c0'-
sideraton In connection with this herring
, is whether YOU think your interests VIII
be better served by the passing of tho
management OF the Rutland railroad -
the New Haven. or by the continuan,-
of the control of this railroad by the CEN
. trail.
An expression of your attitude upon this
question has been invited by the com.
mission.
(Signed) CHARLES s. MEILEN