The sun. [volume] (New York [N.Y.]) 1833-1916, 1913-07-10
Department Of Justice Has
Attorneys Going Over
Report.
HINT FOR STOCKHOLDERS
commission Recommends That
Road Get Rid Of EnOr-
nous Holdings.

WASHINGTON. July S.-The Interstate
'ommerce Commissions report on
transportation conditions in New Eng
land contains sharp criticisms OF the
financial operations OF the Mellen man
Not since the commissions condemna-
ton of the Hartman financing of the
Chicago and Alton Railroad has the COM
mission handed down such a harsh
decision.
In the findings oficials here think
they see a partial explanation OF the
resignation Of Charles 8. Mellen as
president Of the Boston and Maine and
of the Maine Central. subsidiaries Of the
New Haven.
AS a result Of As investigation the
commission makes recommendations
which are bound to have a far reaching
effect not only upon the New Haven
system but on other great railroads Of
the country.
May De Held Unlawf ful.
The commission recommends. for one
thing. that the New Haven divest itself
Of its enormous holdings. The report
contains no specific recomme ndatiOn in
regard to the merger Of the New Haven
with the Boston and Maine, but rum
ming through the document IL q clear
animation that this merger may be held
unlawful and that the commission 10
Inclined to favor . free play Of COM
petitfon.
The commissions report already Is In
the hands OF the special attorneys ap-
iointed by the Department Of Justice
- ascertain whether or not a suit un-
der the Sherman law should be begun to
d ssolve the merger.
As a result Of Its finding Of fact in re-
rard to the financing Of the New Haven
tie commission recommends that inter-
ate railroads should be prohibited from
s."nding money or incurring liability In
ifansact!ons which are not in direct
liae with the operation OF the railroad
and that they should not be allowed ia
acquire other railroads nor issue stocks
for this purpose without the approval
VI the Federal Government.
~ not tom m1oo100 FOO00.
The commission finds that In the las,
nine years the New Haven company ex.
pended s2o+ 600, 600 in operations outside
!ts railroad sphere; that in the purchase
# the Rhode Island trolleys the com.
pany paid sl350O.000 FOR nothing"
tlat the Westchester road cost the New
Haven $l2,000.000 more than the road,
alue. and that In the transfer Of ths
boston and Maine stock to J. l.. BillarC
by the New Haven. and the subsequen,
purchase from him of the same stock
Billiard made more than S2.700,000 with.
oit Investing a single dollar.
These are given only as specimens o.
tie Mellen financing. The commission
insists that the New Haven manage
ment has been actuated solely by tn,
desire TO get monopoly Of transpor
'ation facilities in New England regard
ess Of cost.
Rates and service Fair.
The commission finds generally In ia
Nor OF the New Haven system except IL
me matter Of Its financing. 1t holds tina
It gives fair rates and adequate servic
and that what 1t needs now IL rest ant
an opportunity for constructive work
The passenger fares charged by the Nev
haven according to the commission
have been more favorable to the loca
ravelling public than In any other par
~ the United States.
The commission declines to grant tn
Boston and Maine an increase in freigh
rates until the commission Is satishe
not only that the increases are neces
sary but that the property is operate
with economy and efficiency.
The report was written by Mr.. Prouty
The taking Of testimony extended owe
many months The general investigation
vas undertaken In consequence Of man
Complaints In regard to railroad condi
lions in New England. particularly tn
freight service on the Boston and Maine
sums Up Rate Situation.
The commission sums up the rate sit
uation In New England as follows:
The local freight rates OF New Ems
and are slightly higher than. but on tn
whole compare favorably with. the aver
age In ofYicial classification territory
they are lower than those in other part
Of the country except for the commia
sion made rates In certain States. .Th
long distance rates are lower from an
to New England than In most other sec
tons. It's passenger fares have bee
more favorable to the local travellin
public than in any other portion OF tn
United States. The recent decision Z
the United States Supreme Court sua
tanning the statutory cent per mil
fares in several States will tend to MAX
that fare moro general In the future"
The opinion says that for some tim
there have been persistent and earnel
protests against the financial method
and operations OF the New Haven Con
pany and that criticism had resulted