Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1915-11-09
Unnecessary Expenditure

Mr. Mellen remarked, in the same
letter. that through lack Of foresight
and delay in the purehsse~-af-. -saaeh
properties, the New Haven had paid
"a tremendous price when with very
little effort the competition could have
been stopped at its inception and with
very little expenditure"
The letter was written on May 90
1900, during Mr.. Mellen's absence from
the New Haven, as president Of the
Northern Pacific in response to re-
quest from John NJ. Hall, then the
New Haven president, to put him in
touch with the interests in control of
the Central New England Railroad,
with a view to purchasing it. Previous
testimony introduced by the govern
ment revealed that the New Haven
had contemplated the purchase Of the
road the year before, while it was in
foreclosure proceedings but that the
directors had objected to the purchase
and the price asked. Their opinion, il
was disclosed, was not then in accord
with that Of either Hall or Mellen. al
though four years later Messrs. Nor
gan and Rockefeller were revealed as
conducting the negotiations for the
acquisition of the road.
Cost Of Decentralization
Il am aware" Mr. Mellen wrote. "of
the difficulties in the way of conpe
tition and operation Of their line (the
Central New Englands) from Tariff
vile to Springfield; still it is inevita-
BILE they will overcome these Difficult.
ties in time, and as the parties in con-
troll have disposition to demoralize
things, one year of Generalization of
your business will represent a greater
expenditure than any difference there
is likely to be between you, regarding
the price if the property can be pur-
chased.
I agree with you that it would have
been much better to have purchased
the property when you had the oppor-
tunity and the difference in price be-
tween you at that time was inconsid.
cradle, compared with the ANNOYANCE
TO Which you have been subjected. The
expenditures which the other people
have made, you must in the end take
up and believe today that you can buy
at a cheaper price than it will cost
you to have fight even should the
eventual payment as the result OF
that fight be less.
Pay to Avoid Contests
Flights between railroads are very er.
pensive, and the cheapest way in the
long run Is to pay something to avoid
them. The payment is never quite equal
to the loss ensuing as the result OF the
contest.
Il noticed you had taken the New Ha-
ven Steamboat Co. and, as you know
from various conversations / have had
with you while in the service of the New
Haven road, I believe the acquisition
was a wise one and 1 believe you would
have made money had you taken it in
before they had extended their service to
Providence.
But then you know the New Haven
road has always been prone to under es-
innate the value Of a competitor, and
as a result of delay in very many in
stances paid a tremendous price which
If with very little effort the competi-
ton could have been stopped At its in
ception and with very little expenditure.
"The road has been extremely fort
innate in being 50 rich it could afford to
pay the prices 1t has for its acquisi-
tons: but IL there not q limit beyond
which even a property like the New Ha-
ven can -? And 1t Is wise when you
know how much depends upon the main
tenance Of your monopoly not to take
in what you must eventually have when
the opportunity oners even 1t = moder-
ate advance over and above what you
(eontinusd on Paas -col. 81