The morning journal-courier., 1908-01-18
NEW HAVEN ROAD
 WELL DEFENDED
Most Audacious Attack on Credit of Company by L. D.
 Brandeis.
QUESTION OF STATISTICS
Cunning and Ingenuity Used in Their Handling by Attacker-Fab-
 ricatiOns AL

Boston, Jan. 17.--Probably never before has so audacious an attack been made on the credit of an Ameri- can railroad of recognized financial stability as that contained in the pam phlet recently issued by L. D. Bran deis- an attorney of Boston, who is generally supposed to be acting on be- half of certain Boston & Maine stock holders.
 The pamphlet lays hold of certain statistics with sufficient cunning and ingenuity to influence many readers, but any one with knowledge of rail- road accounts will find upon analysis , that the pamphlet consists principally of one almost continuous and unbrok- en strain of errors, mis-statements and fabrications.
 The capitalization of the New Haven is treated at great length. At the out set on page g, this attorney says: The outstanding capital stock of the new New York New Haven & Hartford R. R. on June 30, 1907. was $121,S7S,- 100s' Ass matter of fact, the New Haven. on that date and at present, has only s97, ,OS0,40O of stock outstand- ing, there being s121,S7S,100 of stock authorized, but of this, $24,797,700 is held in the treasury.
 On the same subject. on page A, this attorney says: Tn the six years ending June 3O 1907 the capitaliza- ton of the New Haven system increas- ed from s15S,SS3,443 to s49S,s49,S05, viz: 9,966,362. or 213.9 per cent" This Is fabrication.
 As indicating the methods whereby this figure $49S,S49,SO5 was arrived at, 1t is only necessary to point out that this item includes s56,975,3SS par value of stocks, bonds and notes of the New York, Ontario & Western R. R. and its subsidiary companies. Now, as a matter of fact, the only interest the New Haven has in the New York Ontario X Western R. R. is an invest ment in Ontario stock which cost the New Haven $13,10S,397
 This is an asset, pure and simple of the New Haven road, and involves ab- solutely no liability or obligation on the part of the New Haven except to collect substantially $5s5 ooo year in dividends. or about 4 12 per cent. on the New Haven's investment There fore this attorney deliberately trans fers an asset of the New Haven road of $1310s,s97 into a liability of $56,- S75,3sS!
 Not only in this instance, but in many other instances these are the methods by which this attorney figures 2 the capita lization of the New Haven 5 road, and, therefore, his elaborate dis cussion of the capitalization subject, his percentages and deductions, may ( be dismissed as ridiculous
 This attorney attacks the New Ha ven's solveney. He says. on page 2s, that fixed and other charges against income this year will be mot less than s20,000 ,000f This would be an in- crease of s4,sf2,2ss over the same {, charges of last year.
 N Now, as a matter of fact. after full consideration of recent increases in capitalization, there is absolutely no warrant at the present time for assum- ing that the fixed charges of the New f1dNtI TtdI l1lS NtdI sWlll bt III thCcSS of,S17.250, 900. and s1S.000,000 should bel an outside figure,
 In attacking the roads financial stability this attorney appears to man ufacture additional fixed charges in the current fiscal year to the extent of probably $2ooO,OoO to s2,75o.OOo.
 On page 17 he says, in effect that the New Haven's net income from other properties last year was s7,631,- f7s9 Chat is, the roads "other in- : come") and estimates that it will be about S7500,o00 this year, allowing for practically no increase.
 Now, as a matter of act, in the item of dividends alone the New Haven should receive this year nearly s77G,- 900 on it's Boston & Maine stock, about s200000 from the Central of New England R. R. as interests on it's in come bonds, and s150,Oo0 on its Mer- chants. X Miners stock, together with other smaller items, none of which it received last year. making an addition in this direction alone of at least S1.- 100000. and the figure may be ulti- mately considerable in excess of this. Furthermore, the steamship system