New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-08-01
Promoters Secure Control OF
Alb Miles of Lines in
Massachusetts.
MAY GIVE UP OTHER ROADS
Divorce of Transportation In
terests Thought Likely
Guarantees Not Trans
ferred to New Regime.


Western Massachusetts trolleys owned
by the New England Investment and Sc
curity Company. The announcement
was made here today
/ 1t is understood locally that the New
Haven railroad has guaranteed the di-
vidends on the stock of the company
and this sale is looked upon by many
as the initial step in the plan of the
New Haven to divorce its trolley lines.
The roads included in the sale are
the Springfield Street Railway. the
Worcester Consolidated Street Railway.
the Milford, Attleboro and Woonsocket
Street Railway, the Attleboro Branch
Railroad Company. the Interstate Con-
solidated Street Railway Company and
two leased lines of the Worcester. the
Worcester and Webster and the Webster
and Dudley Street Railway Companies.
Involves 418 Miles of Lines.
The companies operate 4lS miles of
street railway.
The New England Investment and Sc
curity Company is voluntary associa-
tion formed in 1906 TO take over the
New Ravens Massachusetts trolleys 1t
Z
Greet railway mileage in Central and
Western Massachusetts. outside of the
Berkshire Street Railway which was
sold to the New Haven in 1910 by auth
GRITTY Of the Massachusetts Legislature.
The purchase was consumated
through the acquisition of the entire
common stock Of the New England In
vestment and Security Company of
100000. which alone has voting power.
The 100000 preferred stock of the
Investment Company is owned by the
public and dividends of per cent on
1.-The issue are guaranteed by the New
Haven Railroad. which also guarantees
sos per share in the event Of nquida-
ton.
The New England Investment Com
pany also has outstanding an issue OF
sI5,OOOOOO notes guaranteed, principal
and interest, by the New Haven.
The company is a voluntary associa-
ton formed back in 1906 at the time
public complaint was directed against
straight ownership Of trolley lines by
steam railroads.
How the Company Was Formed.
The New Haven transferred to the
holding company the Springfield and
Worcester properties. the Central Mass
achusetts Electric Company and other
minor lines. The bankers at that time
attempted to effect the sale OF the en-
tire authorized issue Of 100000 pre-
ferred but never succeeded in distribut-
ing more than $4,000 000
Ownership Of the common has always
been rather nebulous. but it has been
the tacit understanding that this con-
trolling 100000 of common was held
by certain trustees not antagonistic TO
the New Haven Railroad.
II is said that this sale was planned
before Mr.. Mellen resigned the presi-
dency OF the road and does not neces-
sarily mean the disintegration of the
New Haven trolley system.
Worcester. Mass. July 31.-Colonel A.
George Bullock, of Worcester, one Of the
board OF trustees Of the New England
Railways and Investment Company, said
to-day: LAS TO the story that the New
Haven Is to be released from the interest
guarantees on the preferred stock. they
cannot be released. That statement is alb
surd on the face OF It."
New Haven. July s1.-Sanderson &
Porter. who bought the controlling inter
est In the Massachusetts, trolley properties
have constructed lines in this state, build
ing the line from Meriden TO Southington
and Lake Compunce. in 1898. This road
was later sold to the Connecticut Railway
and Lighting Company. which Is now a
part Of the New Haven companys trolley
system in this state, known as the Con-
necticut Company.
II Is stated that the recent action OF the
New Haven company in leasing its East
ern Connecticut trolleys to the Shore Line
Electric Railway Company-the Plant
syf.ern,--snd the sale Of It's interest In the
Massachusetts trolley properties. already
mentioned. does not necessarily mean any
fu~thsr segregation or disposal OF lines in
this state.
This Boston dispatch stating the details
OF the sale OF the control Of tho New
England Investment and Security Com
pany was confirmed here by Sanderson
& Porter, the buyers, whose offices are
at No. 80 william street. According to
Seton Porter. member Of the firm, the
terms Of the sale. however. do not re-
lease thu New Haven from its guarantee
Of the 4 per cent dividend on the 81, O0O,-
900 pref, rred stock OF the Security Com
pany, nc Is the New Haven released
from pay.1 g the interest on its 5000
900 notes.
The transaction" said Mr.. Porter.
was not carried on with the New Haven
but with certain individual stockholders.
whose identity we do not feel at liberty
TO divulge. We have been endeavoring
for some time TO obtain control of the
electric transportation lines in Worcester.
Springfield and their environments. The
stock was not bought IN bulk, but small
blocks have been acquired from time 10
time. so that now we hold virtually all
the common stock outstanding. which
gives us four directors. as against three
for the preferred stock"
5000 a Share Reported Price.
Mr. Porter refused to name the price
which was paid for the stock Of the troll
ley lines, but II was reported to be around
200, which means that Sanderson a. Por-
ter were forced to pay double its par
value. The stock was purchased for an
investment. he stated, and IT is the inten-
ton OF the new owners TO operate the
properties, not for clients but for them