The Bridgeport evening farmer., 1913-07-09

New Haven are shown by the report to be separable organizations. They are not one system, but two systems under one management. Therefore, closer supervision, with correspond ing gains in efficiency and safety
 might be expected from a dissolution of the merger Non competition be- tween carriers is unimportant More over, any suppression of competition involves larger issues, which must be discussed by those who are charged with the duty of legisltafon.
 The proposed continuation of the in- quiry into the matter of increases in rates ought not to be held in ad- vance of the posting of such rates for the information of the shippers who must pay them. The report strongly. suggests that increased net income for the Boston g. Maine should be secur- ed by a reform in Expenditures rath- CT than by an increase of rates-'
 The inquiry resulting in tO-day's re- port was begun about a year ago by the Commission upon it's own initia- tive, in consequence of numerous and persistent complaints of the railroad rates, regulations and service in New England. The carriers particularly investigated were the New York, New
 Haven. and Hartford; the Boston and Maine; and the Maine Central Months we're devoted to examination of books and accounts and S7 days were devoted to public hearings, in the course of which more than 6,OoO pages of testimony were taken. The report IS divided under four general heads, ''Service,'' Rates stFrinancess' and "The Remedy" Com missioner Prouty, who has devoted much of his time during the last year to the inquiry, discusses exhaustive1y / each phase. The report aggregates nearly 3O,000 words, or approximate Iy 25 columns in the average nneWs- paper.
 In an exhaustive discussion Of the financial affairs of the New Haven , and the Boston S Maine. Commission ] CT Prouty indicates clearly that the , investigation was mot into the sol- 1 vency or insolvency of the New Haven ] Compay," but rather into the charae- ter of it's financial operations.
 It is shown by the report that in | 1903, the total capitalization of the i New Haven was $9S, 100000, and it's l operated mileage, 2,04O miles. Tn ! 1912, it's capitalization was s417. .0oD.- 900, an increase of S924, GOO, ,00os while it's operated mileage was in- creased only 50 miles In this pe- riod of nine years. the New Haven Co.,. acquired actual ownership of about 500 miles of road which 1t pre- vi JusIy had operated, expending ap- proxf1nateIy $4O,0O0.OOO in obtainingi the additional mileage. It expended during the nine years $96,0OO,0OO fort and equipment, making Q total of $136, 100000 devoted to it's railroad property.
 This would leave,''a the report points out, the sum Of S2O4. .00O, ,O0O which in nine years had been expend- ed in operations outside its railroad sphere" To the methods of invest- ing that sum, the report devotes e1ab- orate attention. Various transactions are taken up, one by one. and anaiys- cd.
 In it's acquisition of the Rhode Isi- and trolley lines. the methods pursued Prouty suggests, "af- ford an instructive object lesson in he realm of what is sometimes term sd high finance'.'' After passing through the hands of two .or three cor oorations, the trolley lines. were ac- 1utred by the New Haven at finfiat- sd'' prices.
 Representatives of the New Haven Co.' the report says, insisted that his company had not watered the 1tock of the Rhode Island Co, and his, strictly speaking. is true. The Co, turned in the wa CT and the New Haven Co.,, converted hat water into wine. In whatever Lspect the transaction is viewed, the Few Haven gave SIS .5OOsO0 for noth- ng" It was shown that the trolleys ost the New Haven to date about PA, 100000 and have been valued at omething more than one-quarter of hat amount.
 We are not concerned" says the eport with the amount lost. but ather with the character of the tram
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