Daily Kennebec journal., 1913-07-10
For Financial Operations
Of the New Haven R, R.
Agreement with B. & A. Illegal
--TroIleyLi SHOULD Be Cut Out.
Boston Z Maine Merger Will Create
Monopoly Il Allowed 10 Stand.

Washington, July 9--Financial oper-
atoms of the New York, New Haven
u Hartford Railroad, it's ownership of
trolley lines and control of allied New
England railways, are condemned in
unfneasured terms by the Interstate
Commerce Commission in the report
of its investigation made public here
today. The Commissions conclusions
are:
That the outside" financial manage
ment has been "wasteful in the ex-
treme," and that had the New Haven
confined itself to actual railroad ac-
tivities under the same conditions that
prevailed in other respects "it could
have paid a dividend of per cent for
the fiscal year 1912 and carried to sur
plus account 1874, 900 instead of show
ing a deficit of 1890. 600. -
That the New Havens agreement
with the Boston q Albany is "violative
of the spirit of the statute against the
restraint of competition and should be
cancelled I'm our opinion" says the
Commission, this line should be kept
entirely free from New Haven control"
That the New Haven should divest
itself of its trolley lines, not because
the present ownership is in violation of
tdH Dut btCdlSt SuNIl ONI1tTS0ID I1lSnl
Ee used to prevent the building of COM
peting lines in the future.
That the Boston & Names merger
with the New Haven. if permitted to
stand viii result in IAN almost exelus-
i've monopoly of transportation faoili-
ties by railroad in the greater part of
New England"
Lack of Steel Cars.
That passenger train service without
considering safety of operation, ON the
New Haven. is distinctly better than
any other line entering New York. and
tnat of the Boston & Maine equally as
good. Both roads, however, are criti-
cised adversely for lack Of steel ears.
That the freight service of the Bos-
ton & Maine lis much less reliable than
that of either the Pennsylvania or the
baltimore a Ohio, while that of the
New Haven is slightly inferior to the
Pennsylvania but about on a par with
the Baltimore & Ohio"
That passenger fares in New Eng
land, have been more favorable to the
local travelling public than in any other
portion of the United States.
That ANY betterment of railroad
conditions in New England must begin
with the assurance that the New
Haven management will act not only
prudently. but, above all, within the
letter and the spirit of the law"
No order was made by the Commits
sion, but in its opinion, the following
propositions which have national appli-
cation to all railroads, lie at the found
alton of adequate railroad regulation:
Every interstate railroad should be
or
incurring liabilities or acquiring pro-
perty not in the operation of its rail
road or in the legitimate improvements,
extension or development of that rail-
road.
mo interstate railroad should be
permitted to lease or purchase any 9TH
or railroad, nor to acquire the stocks
or securities of any other railroads,
nor to guarantee the same. directly or
Indirectly without the approval of the
Federal Government
mo stocks or bonds should be issued
by an interstate railroad except for the
purposes sanctioned in the two pre-
ceding paragraphs. and none should be
issued without the approval of the
Federal Government
Commissioners Clements and Marble
submitted eoncurrins opinion III
which they "agree heartily with the re-,
mort" but make their position clear as
TO some of the issues mentioned.
Concerning the merger of the New
Haven and the Boston & Maine. they
assert that this is phase of the sub
iect that should be left to the Con-
precs, Just as the issues under the
antitrust law have been left to the
courts. If it were properly to be con-
eidcred here, however, we would give
weight to the suggestion that the mer-
ger has so overloaded the executive
heads of the entire aggregation as TO
impair not only correct and eeohomclai
financial administration. but also enc
tency and safety of operation. The Bos-
ton & Maine and the New Haven are
shown by the report to be separapie
orpanically. They are not one system,
hut two systems under one manage
ment. Therefore, closer superintenu-
ence. with corresponding gains III enc
fency and safety, might be expected
from a dissolution of the merger.
No Competition.
mo competition between carriers Is
Continued on Page F1ve.)