The Bridgeport evening farmer., 1913-02-27

w. Wilson's bill of particulars, deny ing that the managers of the New Haven Company are footing the steam road property, by the constant pur- chasing of trolley roads and steam ships at extraordinarily high prices. MT. Kochersperger's statement fol- lows:
 ttThe average market price for New Haven stock in the year 1906 was $197 a share, but it should be borne in mind that the New Haven stock was selling at a price based upon the then business conditions, which not only affected it but all other stocks. 1906 was what might be called ban ner year for business, but the busi- ness distur which resulted in decline in the stock of the company was due very largely to the attacks on the great business interests of this country by men in public life. Those business attacks have continued ever since and is it any wonder that the price of New Haven stock is selling to-day at $127 a share. The depres- sion in New Haven stock is incidental to the depression in all dividend pay ing stocks. One has only to look over the stock lists in this morning newspaper to have my statement thor ough1y accepted. All of the stocks of great corporations have been very seriously depressed within the last
  most wholly due to the apprehension created by the continuous attacks on the business of this country by men in public life, and the prospect of con ttnued hostile legislation affecting these interests.
 The attack of the politicians on the business interests of the country are bound to affect the values of all Properties and it is time that the stockholders in Connecticut and ad- joining states should be aroused to the effect of these attacks on the great business interests of this coun- try. There isn't 2 man, won2an or child in the United States, continued MT. Kochersperger,r who is not famii- far with the business depression which followed the great panic of 1907. In deed the effect of that panic is with us to-day and it is not an exaggera- ton to state that panic brought upon this country by unwise public utter ances. As to the net earnings report ed for the years 1908, 1909 and 1910, it should be borne in mind that the figures stated by MT. Wilson are for the New York, New Haven and Hart ford Railroad proper and that a cor rect conclusion cannot be formed without taking into consideration the surplus income of subsidiary com panies, to which the New Haven road as the owner directly or indirectly of the stocks of those corporations. is en- titled.
 Would Be Surplus.
 tAIso to the conservative policy of the. New Haven board in establishing and building up out of the expense accounts, reserve funds for fire losses personal injuries, coal insurance and marine insurance, which had the eff feet of undertaking the real net in come of the system. This was clear 1y set forth on page six of the Gen eraI Statement to the stockholders for the fiscal year ending June 30th, 1912, wherein it was shown that if the sur pluses of thes subsidiary companies and these reserve funds had been ta- ken into consideration that the de- felt of $453,613 for 1909 would have been converted into a surplus of $85,- 6O6; the deficit for 1911 of $1, ,267,OOO would have been converted into a sur plus of $456,712-"
 Vice President Kochersperger speak ing of the acquisition of The Rhode Island company quoted from the re- port of the Valdation committee of Massachusetts, page 122, which says:
 '"When it is considered that the lines (Rhode Island Line) have a mileage of 320 miles of single track, serving the second largest city in New England; that the earnings are in- creasing; that the property has been put in excellent condition; and that the leases are for a very long. term, 1t seems probable that the ultimate val ue of the property will be great For the purposes of this report, which is designed to be very conservative, however, the value of these shares is placed at $6,000,000, or about $62 share, that is to say, about one fourth the cost to the New Haven
 As to Trolley Lines.
 Vice President Kochersperger took anTRSnnfa tive wilson's statement that the New Ha- ven company had issued it's stock on an eight per cent. basis for the ac- ouisition of street railway properties paying two per cent. and declared:
 tsThat substantially all of the street railway properties were purchased either through the sale of or ex- change for the four per cent. deben- lures of the Consolidated Railway company; in fact one of the first pur- chases that was made was through the exchange of three and one-half per cent. debentures of the New. ' 9ork; New Haven and Hartford Railroad 
 Vice-president Kochersperger call ! ed attention to the letter of President Mellen to Charles F. Choate, Jr.. of Boston dated January 4, l9oS' winch said: i
 with regard to the trolley lines that have been acquired since I came to this property, that is, since Noven- i Der l. 1902, let me say:
 '"They were acquired under gem ! eraI plan which was adopted by our board of directors,-that the trolleys were desirable as feeders to the steam lines-that they collected traffic through their frequent service and brought the same to points from which the steam service could be us- ed, and thus developed adjoining ter 1 ritory and made the steam railroad of itself more prosp
 Likewise they distribute the traf- fc brought to various points of con- i nection by the steam railroad lines. |
 "They were being developed in desultory sort of way and not upon lines calculated to promote the best results, and, after long consideration, it was thought desirable they should