New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-01-01
Elliott Seeks Approval of
McReynolds for Segre-
eating Roads.
FITCHBURG LEASE
TO BE CANCELLED
Sale of Millions in Stock VIII Be
Thus Postponed Until Mar.
ket Is Better.

Boston. Dec. 5l.-Ihc formation ~ a
voluntary trust 10 take over the stock and
bonds OF the Boston Railroad uoldlaz
COMPANY. which owns more than ma
jority Of the stock Of the Boston 4 Maine
Railroad. is the plan which Howard
Elliott. chairman, and the directors Of the
New York. New Haven & Hartford Rail
road have decided upon as a means %
segrogating the Boston & Maine and the
New Haven systems. according 10 a state
nent which 1.-THE Globe" will print to-
morrow.
THE Globe" says II is proposed that this
voluntary trust shall extend over sur-
ficient period to permit the rehabilitation
Of the Boston G. Maine and IT. restoration
to n dividend paying basis.
Chairman Elliott is expected to cali on
Attorney General McReynolds at Wash
ington on Monday 10 present this plan.
together with the plans OF the New Ha-
ven directors for separation OF thar
steamship and trolley holdings for ap-
provsl OF the government.
To Cancel Fitchburs Lease
The New Haven directors are willing 10
conform with the wish OF Attorney Gen I
eral McReynolds that the lease OF tha
Fitchburg Railroad 20 the Boston 4 Maine
be cancelled and that properly returned
to its shareholders. In such an event
the Fitchburg would be operated as an
independent line or leased 70 some other
railroad not a competing line. The Della
ware & Hudson Is mentioned as likely 10
lease the Fitchburg
The plan for REIMBURSEMENT OF New Ha-
ven control OF the Boston G. Maine az
outlined In THE Globe" article Is as fol-
lows:
The New Haven will form voluntary
trust with the approval of the Department
OF Justice. The trustees TO De designated
will be satisfactory to the Attorney Gen.
eral and to the authorities OF Massschu-
sets
The New Haven will transfer to the
trustees the capital stock and the bonds
OF the Boston Railroad Holding Company.
nearly all OF which 1t owns, which will
carry possession OF the control Of the
capital stock Of the Boston & Maine.
Trustees to Control.
The trustees will then literally be IN
control OF the Boston & Maine Railroad
and they will sit as members OF the
| board of directors The New Haven will
receive nothing for the transfer.
At the end OF ten years. OF whatever
time is fixed for the termination Of the
! voluntary trust, the Boston Maine
stock owned by the Boston Railroad Hold
ing Company is TO be sold and the pro-
ceeds are to be distributed pro rata among
the then stockholders Of the New Haven
Railroad The Holding Company Is to be
dissolved as soon as the Boston a Maine
stock is thus sold.
The details OF the plan are TO be worked
out so as to preclude the New Haven d.
rectJrs or stockholders from interfering
| In any way with the management OF the
Boston g. Maine through the trustees or
the directors whom they and the minority
stockholders select.
The directors OF the New Haven have
been advised by counsel that the plan OF
the voluntary trust will not interfere with
rights the State of Massachusetts, has In
the Boston Railroad Holding Company.
The object OF the New Haven directors
In suggesting this arrangement Is said 70
be the means It will offer OF deferring the
sale OF millions OF dollars Of stock bought
with New Haven funds until such time
as the market price OF Boston g. Maine
securities will provide a sufficient sum 70
compensate the New Haven shareholders
The Boston Railroad Holding COMPANY
owns 6543 OF the S1.4e shares OF preferred
stock and 2is,lSs OF the Ss6,06l shares or
common stock OF the Boston q Mains
The New Haven owns all the stock ana
nearly all bonds of tho holding COMPANY.