New Britain herald., 1930-04-03
OUTSIDERS ACQUIRE NEW ENGLANDLINES
Railroad Ownership Passing Out Of Hands Of Yankee Owners

the future Of New EngiandS lranS- portation facilities, President Red field Proctor of the council today told the New England governors railroad committee that indefinite retention of the status quo among New England railroads is the least likely of all the possibilities in the situation.
 Control of New England's Fail- roads by New Englanders has been steadily diminishing, President Proc tor declared.
 If our New England people are not retaining such ownership of these railroads as they formerly had" he asked, "how can they ex- pect to control the future of these properties, or expect that things will remain as they are?"
 Discusses Water Transportation
 Stressing the fact that the New England governors railroad com mittee was not created to consider railroad consultations alone, but rather the broad question of the fu- ture of New England's transporta- tion facilities, President Proctor emphasized the possibilities of wa ter transportation.
 New England has long shore line with numerous good harbors and ports already developed, but capable of much greater develop ment and offering limitless possi- bilities as avenues of domestic and foreign trade" he declared. Tt is the hope of the council that the committee will consider the coordi- nation of rail and water transporta- tion with a view to the development of both domestic and foreign con- merce through New England gate ways, both land and sea-
 Tt is our hope" President Proc tor said at anothe' point, that your committee will make such further study as will reveal, beyond doubt or question, what ought to be New England's policy with respect to further development of New Eng lands transportation facilities in the interest of the growth of our agri- culture. commerce, and industry"
 President Proctor declared that the New Haven and the Pennsyl- Nania interests ''are doubtless in a position, if they wish, to exercise effective control over the Boston and Maine" Likewise, he said, New Eng land ownership of both Maine Gen. tral and Bangor and Aroostook has declined.
 Tracing the steps taken by the New England Council to investigate the change in ownership of New England railroad stocks, President Proctor accounted the councils sub- sequent action in calling a confer encc of the New England governors and placing the railroad question before them. As result of this ac- tion the New England governors railroad committee was formed.
 President Proctor's statement fol- lows in full text:
 ''The New England Council ap- pears today in response to an invi- tation from the committees chair man. While the council itself is not concerned with the details of New England transportation matters, it has had some connection with cer- tain aspects of the railroad situa- ton, included within the scope of the committees inquiries, concern ing which the facts may be briefly stated as follows:
 "Observing the negotiations among trunk lines with respect to consoli, dations, the council in the early au- tumn of '2S addressed certain in ouiries to the trunk line presidents Each was asked what securities oi New England railroads were held by his company; whether his company was represented on the directorate of any New England railroad anG finally. his company's policy as af. fecting New England, regarding trunk line consolidation. The roads responded quite fully to these ques tions and copies of this correspon dence are submitted herewith fol entry on your records, if you desire
 Ownership Changing
 Some months later, inquiry wa: made concerning then current sale: of New England railroad securities to ascertain If there was tendency for ownership to pass out of New England hands. The New England railroad presidents committee wa! requested to advise the council upor this point. The replies, covering tho period from December, 1924, to De ceniber, 1928, showed, with respec to all the railroads included, de crease of the percentage of stocl owned by residents in New England
 Meanwhile, it was becoming gen erally understood that the Pennsyl vania railroad had increased 1t holding of New Haven stock, anC that Pennsylvania interests had ac Quired stock of the Boston x Maln' in such amount that. together witt the trusteed Boston & Maine stocl owned by the New Haven, the tw' railroads could exercise control o the Boston & Maine. Later is als' developed that substantial block o Maine Central stock had likewis changed hands, going outside Nev England.
 Tn September, 1929, the gover nors of the New England states, il a joint conference. asked for by tn New England council, afforded it al opportunity to place before then such facts as the council had gath cred. The governors soon after an nounced the appointment of thi committee.
 Takes No Stand On Consolidation
 ''The New England council ha , taken no position with respect to tn Interstate Commerce Commission AZ