The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1913-07-09
"WASTEFUL IN THE EXTREME"
Management of the New Haven Railroad Scored in Report
by the Interstate Commerce Commission

WASHINGTON, July 9.-Financial
operations of the New York, New
Haven & Hartford railroad, its owner
ship of trolley lines and control of al
lied New England railways, are con-
demncd in unreasonable terms by the
interstate commerce commission IN the
report of its vestgation made public
today. The commissions conclusions
are:
That the "outside'' financial man
agement has been 'wasteful in the ex
treme.' and that had the New Haven
confined itself to actual railroad activ-
tiles under the same conditions that
prevailed in other respects sit could
have paid a dividend of per cent for
the fiscal year'1912 and carried to sur
plus account $1,794000 instead of
showing a deficit of 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 should
be cancelled = Gin our opinion, - 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 COM
peting lines in the future.
That the Boston & Maine s merger
with the New Haven, if permitted to
stand will result in can 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 & Maine equally as
good. Both roads, however, are criti-
cised adversely for lack of steel cars.
That the freight service of the Bos-
ton & Maine "is much less reliable
than that of either the Pennsylvania
or the Baltimore & Ohio, while that of
the New Haven is slightly inferior to
the Pennsylvania but about on par
with the Baltimore & Ohio.
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 prudent
~, but. above all, within the letter
and the spirit of the law.
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
tion
Every interstate railroad should BIZ
prohibited from expanding money OF
mourning liabilities or acquiring prop
erty not in the operation of its rail
road or in the. legitimate improve
ment, extension or development Of that
railroad
ono interstate railroad should be
permitted to lease or purchase any
other railroad, nor to acquire the stock.
or securities of any other railroads, no.
to guarantee the same, directly or in
directly, without the approval of tn,
federal government.
No stocks or bonds should be issue,
by an interstate railroad except for tn,
purposes sanctioned in the two proceed
ing paragraphs, and none should be is
sued without the approval of the FEEDER
al government
The inquiry resulting in today's re
port was begun about a year ago b,
the commission upon its own initiative
IN consequence of numerous and Del
sistent complaints of the railroa,
rates, regulations arid service in Ncy
England. The carriers particularly in
Vestigated We're the New York, New
Haven Hartford; the Boston
Maine, and the Maine Central Month
were devoted to examination of book
and accounts and 81 days were devot
ed to public hearings, in the cours
of which more than 5000 pages o
testimony were taken.
The report is divided under fou
general heads: Service, Rates, Finance
and The Remedy. Commissioner Prof.
ty, who has devoted much of his tim
during the last year to the inuuir,
discusses eXhaustively each phase. TIL
report aggregates nearly 10000 words
or approximately 25 columns in the a,
erage newspaper.
In an exhaustive discussion of tn
financial affairs of the New Haven an
the Boston & Maine. Commissions
Prouty indicates clearly that the il
Nestlgatlon was mot into the solvenc
or Insolvency of the New Haven con
pany, but rather into the charactt
OF its financial operations.
1t IS shown by the report that
1903 the total capitalization of II
New Haven was $4,000, 900, and i
operated mileage. 2,040 miles.
1912, its capitalization was $4,000
600, an increase of 1924 600, 600; viii
ITS operated mileage was increase
only 80 miles. In this period of nil
years the New Haven company acqui
ed actual ownership of about 500 mil
of road which it previously had opera
ed, expanding approximately $40 .O0t
600 in obtaining the additional mil
age. 1t expended during the nine yea