Norwich bulletin., 1913-09-12
Clash at the
 Bond Hearing
COMMISSIONER SCORES NEW
 RAVENS METHODS s
SUGGESTS A RECEIVER
Better Than to Run on Improper Meth
 ods, Declares Commissioner Anderson
 --MelIen Forced Out by Stockholders.

Boston, Sept. 11.--After a day spent in discussing the question of what constituted a reasonable charge for depreciation in the equipment of railroad, as applicable to the petition of the New York, New Haven and Hartford railroad for the approval of a $I0O0,000 bond issue the MaSsaChu- settS public service commission an nounced today that the examinations of the accounts of the road would be conducted in private. The hearing will go on tomorrow when those ob- Jecting to the bond issue will be heard, after which 1t is expected that public sessions will be suspended until the expert accountants are ready with their figures.
 Counsel and Commissioner Clash.
 The researches of H. Ilarue Brown, counsel for the commission, with the aid of Vice President H. M. Rocher- sperger of the railroad, into various financial transactions of the company was interrupted just before lunch time by g lively clash between Charles r, Choate, Jr., counsel for the road, and Commissioner George w, Anderson, In which the latter declared that if railroad company could not conduct its affairs properly it ought to go into tho hands of a receiver, or issue re- ceivers certificates, to obtain equip- ment,
 5ofgUuu,UUu Hardly SuttfoIent.
 Vice President Kochersperger was practically the only witness of the day, as the remarks of Joseph H, O'Neit, president of the Federal Trust conn., pany of Boston, in support of the bond issue were brief, Mir KochspergeF outlined the purposes to which the company would apply the moneY, in- cIuding large expenditures along tue Shore Line. He said that the S6T T,000,~ 900 would be hardly sufficient to carry out all of the company's plans for placing the road in first class shape, and that several millions more would be required.
 Difference in Computation.
 The question of depreciation devel- oped the fact that in computing de- preciadon there is a difference in the methods of the New Haven company and the public service commission MT. Kochersperger endeavored to en~ tighten the commission on the New Ravens methods but Chairman Fred J. Mcleod and MT. Anderson of the commission claimed that they could not understand it. The latter declared that he believed that the depreciation charges should be fully considered before the bond issue was approved.
 Hot Retort from Commissioner.
 MT. Choate replied that the com mission ought not to withhold such approval because some of the book keeping methods of past years were open to question, and that the public demanded new equipment at once and should not be forced to wait until the road had earned the money to buy it.
 T guess that a road that has paid such dividends as the New Haven, could get along all right" retorted MT. Anderson. Then, rising in his seat, he said: Tt might follow that a corporation could run to some ex- tent on improper methods of this kind in obtaining equipment, but 1t would be better if it went into the hands of a receiver or issued receivers certi- ficates to buy new equipment Then he added smilingly: "But. that is & scare and does not help us a bit"