The daily banner. (Cambridge, Md.) 1897-2008, 1913-07-10
RApS METHODS OF.
NEW HAVEN 4. r..
Company's System Of Finance
Sharply Condemned,
HITS CONTROL OF TR0LLEyS
interstate Commerce Commission At
tacks Merger and Tells of Bic
Losses.

Washington, July lb.-Einanciai op
eraLiona u The New York, New HaveI
4 Hartford railroad, its ownership q,
trolley lines and control OF allied New
England railways, are condemned IL
unmeasured terms by the interstate
commerce cOmmi issiOn III the report
OF the investigation made public here
The commissions conclusions are:
That the ''outSide' financial manage
ment has been 'WaSteful i'll the eX
treme," and that had the New HaveI
confined itself to actual railroad &C
tivities under the same conditions thai
prevailed in other respects 1T coulo
have paid d dividend OF eight per cent
for the fiscal year 1872 and carried tC
Surplus account $1,194,000 instead Of
showing a deficit vi $3.50, 900"
That the New Haven's agreement
with the Boston & Albany is viola
tive of the spirit OF the statute against
the restraint OF competition and thai
it should pc cancelled. In our opin
ion, 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 law, but because such ownership
might be used TO prevent the building
OF competing lines i'll the future.
That the Boston & Names merger
with the New Haven, if permitted &c
stand, viii result in AN almost ex
elusive monopoly Of transportation ia
cilitics by railroad in the greater part
OF New England.
That the passenger train service
without considering safety OF opera
tion, on the New Haven, is distinctly
better than any other line entering
New i Ork. and that OF the Boston &
Maine equally as good Both roads
however. are! criticised adversely foI
lack Of steel cars.
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"
The ehief findings against the rail
road company are:
That between 1903 and 1912 the
company expended s2o4, 900 in op
IL, Snh
That in the purchase OF the Rhode
Island trolleys the company paid $13,
500 ,00G for nothing" that the invest
ments in these trolley properties req
resent $4,000. 900, while their value
at present is $6,000.000.
That the Westchester road cost $12,.
000,0C0 more than the roads value.
That in the transfer OF Boston &
Maine stock to J. l.. Billiard by the
company and the subsequent purchase
from him OF the same stock Billiard
made more than s2,700,000 without the
Investment of one dollar.
The methods of the company in its
financial transactions come in fo1
comment. 1t is difficult" says the
report. TO account for these circuit
Gus and subterranean proceedings
These methods employed in outside
financial transactions are also de
clared to be unnecessarily wasteful
and complex.
The report also contains the general
conclusions that interstate railroads
should he prohibited from spending
money or iucurring liability in trans
actions which are not in direct line
with the operations OF the railroad and
that they should not be allowed to ac
quire other railroads nor issue stocks
for this purpose without the approval
of the federal government.