Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1910-06-28
ERIE REPUD|ATES
LEASE OF The
SusQuEAANNA
State Railroad Commission Is
Told of the Terms of Act of
1898 and Its Objects.
OFFICIAL ADMITS
SOME STOCK WAS BOUGHT
Attorney-General Threatens ia
Obtain Injunction in Chancery
Court If Fares Are Increased.


TRENTON. June 2s.--At the meeting
OF the Railroad Commissioners today
the complaints against the Erie and
Susquehanna railroads In their refusal
to obey the request Of tho Interstate
Commerce Commission TO delay the
putting into effect OF the increased
communication rates, brought forth q
discussion of the relations existing be-
tween the two companies. Tho matter
was brought up while the commission
ers we're Investigating the complaint
lodged by the Board of Trade OF Pas
sale.
The Erie is the single railroad which
has refused to voluntarily comply with
the request of the Interstate Commerce
Commission to postpone putting into
effect It's new rate schedule. Attorney
General Wilson has stated that II, as
he believes, the act of 1893 Is enforceable
against the Erie, he would apply TO
the Court of ChAncery for an inJunc-
ton restraining the proposed rate In
crease.
William H. Corbin told the railroad
commission today that in pursuance or
the act of 1898 the Erie and Susque-
hanna filed a waiver of all exemption
from taxation as required by the act.
The Susquehanna made one-year
lease to the Erie on February "a. lSsS,
a CODY Of the lease being filed with the
secretary of state The lease contained
a provision for renewal II the stock
holders voted for II. The lease was not
renewed, and according to Mr.. Corbiu.
there had been nc merger or consolida-
ton of the roads.
During the year that the lease was
in force Mr.. Corbin stated that tho
Erie did not take over any of tho rev.
enues of the Susquehanna. but left them
in the hands and under the control OF
the Susquehanna officers and directors
Before the year was up. counsel SAID.
the railroads saw the inadcisability
OF any lease or consolidation, and de-
termined to operate the lines separate
ly. Mr.. Corbin admitted that the Erie
has bought shares Of the Susquehanna
as opportunity presented and as
stockholder 1t now controls the election
of directors of the Susquehanna. This,
he said, was done under authority OF
the New York stock corporation law,
and not by any power conferred in the
act of 1885,
David Bosmond, secretary Of the Erie,
and associated with Its main office
since 1895, took the stand as witness
and corroborated by his testimony the
statements made by Mr.. Corbin. In
reply to a question by President Frank
H. Sommer, of the commission, MT.
Bosmond said the railroad had never
worked, in fact, under the lease,
Neither had the Erie paid any of the
rentals of the Susquehanna. nor taken
its revenues.
Mr.. Corbin presented the commission
formal statement as to the relations
between the two roads and pending
consideration of this the commission
reserved decision upon the question.
It's conclusions will have an import
ant bearing upon the injunction pro-
ceedings contemplated by the attorney
general.
Colonel Charles w. Larned, Of the
West Point Military Academy. ap-
peared before the railroad commission
today and detailed to the commission
the unsatisfactory condition in the
Weehawken tunnel of the West Shore
Railroad Company.
He insisted that in cases trains were
delayed for a great length of time in
the tunnel the passengers would not es-
cape without serious menace to their
lives and health.
The company was represented by AL
fContauued on second Pagel