Norwich bulletin. [volume] (Norwich, Conn.) 1895-2011, 1909-06-04

cases OF conflict on rates. Mr.. Judson
hoped the committee would take cog
nizanee of the fact that it is these
specific cases, these instances Of local
exactions, Of seeming Injustice that
give rise to- conditions which have
and do demand attention from a COM
mission. r.
Mr.. Maltbie on the New York Commits
sions.
Mr., Judson then introduced Mr.
Maltbie, who in reply to questions, ex-
planned the functions. scope, methods
and some of the results of the COM
missions in New York state. He said
that no effort had been made to secure
a repeal of the law creating the COM
missions by any paper or body in New
York; he believed the commission
scope would eventually be enlarged
and that its powers would be direct
ed to benehting the public by making
corporations live up to the law
Mr.. Maltbie explained the workings
of the New York law to prevent the
issuance of stock where there was not
actual value behind it, and stated that
he believed the commission ought to
have considerable liberty in the mat
ter of issuance of securities. He
thought that each case ought to be
dealt with separately rather than by
the passage Of any law which would
make a fixed rule and that in some
cases 1t might be permissible to allow,
the issuance Of stock below par in
order to help debilitated corporations
to build themselves up into a state of
soundness, but that there ought to be
physical value as basis for the is
suance of all stock.
Chairman Wilcox of New York Com
mission Answers Questions.
Chairman Wilcox Of the New York
commission and formerly postmaster
of New York city under appointment
by President Roosevelt was the next
speaker, He told of a surface road in
New York which raised its capital
from s250,000 to 100000 and so far
as he knew has not even bought new
horse with the money thus obtained.
In reply to a question it was brought
out that the commission could not pre-,
vent any corporation from securing
options on property which they might
want before they asked for the power
to issue stock to pay for It,
In answer to a question as to whether
the workings of the public service
commission in New York had been
such as to prevent capital from going
into the local traction field, Mr.. Will
cox replied that Mr.. Shonts had in
formed him that the company which
desires to build a subway from the Bat
terry to the Bronx had decided to in
vest $50, 100000 instead of $50, 600, 900
Snd that another company wants to
build a 10000, 900 road, both of which
properties are to revert to the city of
New York after the lapse of a certain
number of years. He said that bank
ers have s200,000,000 which they are
willing to invest 'in spite of this arch
enemy Of progress the public service
or,r, tee baf
applications for franchises than ever
before.
Mr. Wells asked why corporations
overcapitalize and Mr.. Wilcox replied
that in one case in New York S1S3,000
was used ito accelerate public opinion
and 100000 went to a yellow dog
fund"
He was asked by Representative Fisk
what course would be pursued If cor
poration was paying IS per cent on it's
investment, for instance, would the
commission reduce the rates the COM
pany was charging and what the effect
would be on the value of the stock and
how the stockholders would be pro-
tected in such an event. Mr.. Wilcox
replied that the commission had as yet
heard Of no such case.
Mr.. Judson Makes a Statement.
Mr. Judson made the statement that
the New Haven road had leased the,
Connecticut Railway and Lighting
company and had saddled on the peo-
pie of the state the task Of paying four
per cent. interest on its inflated values
for 80 years. Mr.. Robbins replied that
the rental would not have been differ
ent if the capital stock had been twice
as much as it is.
Summing Up Next Tuesday.
After some further argument the
hearing vas closed. Next Tuesday will
be devoted to the summing up of the
matter by the proponents. each to have
an hour and a half in which TO present
their side OF the case.