Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1913-04-23

Commerce Commissioner Prouty. The
|scommis3ion is inquiring into the fl.
nancial operations, rates, service and
policies of the New Haven system.
Mr. Brown, who testified, yesterday,
regarding his examination of the books
of the New Haven and its subsidiary
companies, told. today, under eXamina
ton by Louis ID. Brandeis, represent
ing the Boston Fruit and Produce EX-
change, of the history of the steam
ers Rhode Island and Connecticut, fol-
merry operated by the New England
Navigation Co.
The original cost of the Rhode Is
land in 1882 was $272.000, and the
Connecticut was built years later at
a cost Of $672,000. both vessels be-
ing constructed for the old Providence
d Stoningtea Co.
The steamers We're acquired by tho
New England Navigation Co, which
turned them over, in 1906, to the Unit
ed States Transportation Co. another
New Haven subsidiary. for $3.50, 900.
Two years later they were again turn
ed back To the Navigation company
for 1892, 600. Mr.. Brown said that .ie
could not state why they were re-
purchased at an advanced price
In 1910 the Rhode Island was "brol<-
en- up" and $4,000 was realized from
he material in her. The next year.
the Connecticut was "scrapped." her
engines We're salvaged and placed N
another craft at an estimated profit of
S2G,500 and $500 was received from
the material in her. total of S44,000
received from the two steamers.
Mr.. Brown received a letter address
ed by H. o. Nckerson, manager of the
Navigation Company. To Vice Presi-
dent II. II. Kockersperger of the New
Haven Road, dated May 16. 1910, in
which the writer said
THE Connecticut | do not believe
will ever be used again $4,000 must
be obtained for her if sold, but Mr..
Mellen has notified me he thinks she
should be broken up The Rhode Is
land stands the same as the Connect
cut. The reason the above price is set.
is because we do not want them 10
fall into the hands of anybody who
would use them in competition with
ourselves"
In resuming his examination of
Mr.. Brown, Mr.. Brandeis dwelt at
length on the Navigation Companv's
bookkeeping entries for depreciation
OF steamships. Mr. Brown testified
That in two years. ending June 30.
1910. no charge for depreciation was
| made direct to the income, although
/, II might have been charged to main
. tenance. In 1907. he said, the COM
panys records showed its steamers 10
! be valued at $1S.136,0o0. but this val
uation had decreased to So 1913, 900 in
, 1912. The average valuation, for the
past five years. he said. was close 10
81 900, 900.
other questions brought from Mr..
Brown the statement that four per
cent. was the ordinary annual charge
Tor depreciation in nearly all steam.
snip companies, this being based on
the assumption that 25 years is the
J life of the average steamer. The Nav
/ igation Company's depreciation charges
in five years appeared on the books
| as S425, 600. Reckoning at the per
cent. rate he said this would repre-
sent the depreciation of 1890. O0O
worth of ships. If the per cent rule
| had been applied to the Navigation
| Company's steamers for the past five
years the depreciation, he said. would
have been about $2,200,0o0
| The acquisition of the JOY Stearo-
! ship Co. by the New Haven system
was next considered by Mr.. Brande;s.
Mr.. Brown, testifying always FROM
/ the voluminous mass of papers which
! represented the work of himself and
| from six to 10 assistants for five
| months, said that this line was taken
| over by the New Haven system in
| December. 1905, when a payment of
! Sf15,o0O in note was made by the
| Navigation company to the New
| Haven Company. About November Is
1905. the New Haven Company issued
| two checks, one for 1925, 900 and the
other for $250,000 to Vice President
kochersperser, for the acquisition If
| JOY Line stock. The funds were placed
| to Mr.. kochersperger's credit, and he
drew checks to sundry holders of JOY
Line stock. Altogether a total of ST, :
+, 319,756 was paid for the JOY Line The
line operated steamers between New
York and Bridgeport. New York and
| Providence. New York and Fall River
and New York and Boston.