Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-07-09
MERGER MENACE
TO NEW ENGLAND
Views OF |. c. c. Regarding
Combination of Railway
interests.
NEW HAVENS AGREEMENT
WITH BOSTON AND ALBANY
Alliance of Steam Roads and Their
Control of Trolley Lines
Condemned.

FINANCIAL operations of the New
York New Haven and Hartford rail-
ROAD It's ownership of trolley lines and
control of allied New England rail-
ways are condemned in unmeasured
terms by the interstate commerce COM
mission In the report Of its investiga-
ton made public here today. The COM
missions 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 at could
have paid a dividend Of per cent for
the fiscal year 1912 and carried to sur
plus account $1.794. 900 instead OF show
ing a deficit of sS30.000"
That the New Havens agreement
with the Boston and Albany is viola
tive of the spirit of the statute against
the restraint Of competition and should
be Cancelled. In our opinion" says
kept entirely free from New Haven
control"
That the New Haven should divest
itself of it's trolley lines. not because
of law, but because such ownership
might be used to prevent the building
Of competing lines in the future.
Merger Amounts to Monopoly.
That the Boston and Names merger
with the New Haven. IL permitted to
stand, will result in IAN almost ex-
elusive monopoly of transportation
facilities by railroad in the greater
part of New England"
That passenger train service. without
considering safety Of operation, on the
New Haven is distinctly better than
any other line entering New York. and
that of the Boston and Maine equally
as good Both roads. however, are
criticised adversely for lack of steel
cars.
That the freight service of the Bos-
ton and Maine lis much less reliable
than that of either the Pennsylvania
or the Baltimore and Ohio. while that
OF the New Haven is slightly inferior
to the Pennsylvania. but about on
par with the Baltimore and Ohio.
That passenger fares in New England
have been more favorable to the local
travelling public than in any other por-
ton Of the United States.
That ANY betterment of railroad con-
ditions in New England must begin
with the assurance that the New Haven
management will act not only prudent
ly. but. above all, within the letter and
the spirit OF the law"
Proposition of National Scope.
No order was made by the commits
sion. but in its opinion the following
propositions which have national ap-
plication to all railroads lie at the
foundation of adequate railroad regula-
ton:
Every interstate railroad should be
prohibited from expanding money or
mourning liabilities or acquiring prop
erty not in the operation of its rail-
road or in the legitimate improvement.
extension or development OF that rail-
road.
NO interstate railroad should be per-
mitted to lease or purchase any other
railroad. nor to acquire the stocks or
securities Of any other railroads, nor
to guarantee the same. directly or in
directly, without the approval of the
federal government
NO stocks or bonds should be issued
by an Interstate railroad except for the
purposes sanctioned in the two preced-
ing paragraphs and none should be is
sued without the approval of the fed
eral government"
Make Position Clear