The Washington times., 1913-07-09

icv and attitude of the New York, New
Haven and Hartford railroad in its con-
duct of the so-called New England
Lines" and its outside operations,
the Interstate Commerce Commission
today made public its report on the
New England transportation situation.
The report specifically states that
the solvency of the New Haven and its
allied roads is unquestioned, and that
there is no cause for hysteria.'
Throughout the voluminous report.
however. runs denunciation of financial
methods employed by the present man.
agement of the roads. In connection
with the New Haven's system of book
keeping and its recording of the dis
position of about 1850 shares of treas
ury stock, the commission said:
There is no evidence to show any
improperly in this transaction, but the
very character of it, the way it was
conducted, and the manner in which
it is permanently recorded are such that
nothing can ever be known about 1t by
examination of the books and papers of
the New Haven company.
Hard To Understand.
1T is difficult to understand the
necessity for these circuitous and sub
terannean proceedings. If the thing is
done properly and legally, why not pro-
ceed to do 1t in the direct way? This
is but one of the many similar exam
ples that might be given of the New
Haven system of management"
The commission had attempted, in this
case to learn of the diSpoSltlon OIL
sum of approximately Sl2o,Vp. Speahiiis
of this, the commission reported:
We were not willing to have fresl-
dent Mellen testify under oath because
II would have accorded him immunity
SO he gave US a statement, put not uLi. ~
der oath. His statement was that the
amount had been used in campalsn eA
penses during the summer and ran Oh
1904. and that he had had the raulea
ton OF the directors in this act
For MANY years" continued the re-
port, the railroad monopoly OF New
England has been more complete thdh
in any other section OF TINS couhliy ,.
The average rates upon the New raven
for 1911 were higher per ton mile ave.
age than is shown by any other iaISe
railroad system in the United states
Tne capitalization of the New raven
road was gone into in great detalls og
the commission
Total Capitalization.
The total capitalization on June 80.
lively ss3. 900, ,0OO of which 100000 was
stock and sli. 100000 bonds. June 30. lsl2'
tho capital. .zation was sIl7, 900, 600, an in
crease of s32i 100000, while the operated
mileage was increased only fifty miles.
In the nine years the road expended
50; OnD U0l upon its railroads for better
ments and equipment, making total OF
81 I56, ,uyJ,uvU de. o,ed TO its railroad prop
erty. This left 100000 devoted 10
rSil re S0here.
Telling how the New Haven used this
money in purchasing Rhode Island troll !
leys that competed with Its steam lines,
the report went on to say that the |
Rhode Island purchased: !
The United Gas Improvement Com |
pany. which owned the trolleys' turned |
in the water. and the New Haven con- |
verted the water into wine. In what |
ever aspect the transaction is viewed, |
the New Haven gave sl3,5eo, coo for roth |
ing"
The sale OF the Boston and Maine |
stock by order Of tn. courts, as viewed |
by the commission, corroboratcs the |
Of Connecticut, who made nearly |
s., ,0O.oO0 out of the deal without the in ]
vestmcnt of cent of capital" |
Under a caption The Remedy" the |
declares that the New !
Haven had been divorced from its troll |
leyS; that It's enormous trolIey hot0ingS
Massachusetts and Connecti- |
cut and other New England States |
should be taken from the road; also ct |
its enormous water navigation lines be- |
tween Boston and points north and /
south of the Atlantic seaboard.
Summarized Conclusions.
Summarized. the conclusions of the |
are:
That while the passenger service is |
good there is room for improvement |
That while the freight service of the |
New Haven road is inferior it COM |
pares fairly we'll with that of other !
sections similarly situated. That the !
freight service on the Boston and !
Maine is extremely poor and justifies
criticism made, although an earnest
effort is being made to remedy this |
That local freight rates in New Eng
land, while slightly higher than in |
official classification territory. COM !
pare favorable with other sections |
and the through freight rates are
lower than elsewhere. That passenger
fares have been more favorable to the
local travelling public than in any 1
other portion of the United States.
That outside financial operations OF
the New Haven company have been