The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1913-07-09

city Commissioner Prouty says the
commission doubts the propriety of this
laxity in the keeping of accounts be
tween Mr.. Mellen and his company.
+" If, says the report, the president
of this corporation expends money in
connection with the purchase of
lease, he should take a voucher for the
same. If the expenditure is not such
that a voucher can be taken, it ought
mot to be made. 1t Is pointed out
that all of Mr. Mellen's notes to the
New Haven have been liquidated, ex-
cept one for $4,000, but many of them
involve transactions which are not dis
closed by the books.
The marine equipment of the New
Haven was manipulated, according TO
the report, in way to defy analysis.
1.-THE New Haven earnestly insists, -
says Commissioner Prouty, "that all
these involutions and evolutions. all
/ these Kaleidoscope transformations, in
7 .iure nobody. This may be true, but
the purpose of bookkeeping is to ex-
hibt plain history Of the financial
operations covered.
The purpose, or at least the effect, of
this New Haven bookkeeping is 20 ut
terly beeloud those operations 80 as to
render amy intelligent understanding
of them impossible If the thing done
is legitimate why not do it in a di-
rect way? IT the purpose be honest,
why clothe it in tile h3oiliments Of the
mountebank2 The use Of such methods
in the management of public utilities
should not be tolerated.
sour general conclusions is that the
outside financial operations of the New
Haven company for the last nine years
have been wasteful in the extreme and
that the methods by which those opera
tions have been conducted are unneees-
sariiy involved and complex The rea-
son for this is as apparent as the fact
itself. The present management of
that company started out with the pur-
pose of controlling the transportation
facilities of New England. In the ac-
complishment of this purpose it bought
what must be had and paid what must
be paid, To this purpose and its at
tempted execution can be traced every
one of these financial misfortunes and
derelictions.
1T seems proper to add that while
the financial operations of this com
: Ipany have resulted in heavy losses.
there is nothing to indicate that It's
lsolvency has been impaired. The com
pany has expended in the last nine
, years upon its road and equipment over
$4,000 a mile, a sum almost equal to
the average capitalization of the rail
| roads of the United States at the be.
r ginning of that period. While this ex
r 1penditure has been made with 4 free
hand, there is nothing to show that Il
4 has not been wisely made and much tt
( Indicate that the result has fully iusti
fed the outlay. The outside propertie.
of the New Haven have been acquired
lat eXtravagent prices. They are 60.
the most part of substantial value an,
in many instances are Il kind of prop
Eerty the value of which should improve
The financial condition of the compan,
calls for careful consideration am
prudent action, but gives no occasion
for hysteria.
Incidental to the acquisition of tn
control of the Boston & Maine by tn
New Haven, the report discusses tn
financial condition of the former. o
the showing for the fiscal wear whic'
ended June 80, Commissioner Prout
says:
"The time seemed imminent whe
the Boston & Maine, which had for Z
years declared regular dividends. wouI
not earn its fixed charges. To declar
this company insolvent and place it i
the hands of a receiver would on
only infict hardship upon its stockholc
ers, but would be source of seriou
Inconvenience to the territory in whic
it operates, and would shake the eo1
fdenee of railroad investment as
whole. No such extremity should b