The Birmingham age-herald., 1913-07-10
OPERATIONS OF
ROAD CONDEMNED
The Commerce Commission
Makes Report of the New
England Railroad Probe

Washington. July 9.-Financial op-
erations of the New York, New Haven
and Hartford railroad, its ownership of
trolley lines and control of allied New
England railways. are condemned in
unmeasured terms by the Interstate
commerce commission in the report OF
its investigation made public here to-
day. The commissions conclusions are
That the Outside" financial manage
ment has been "wasteful in the ex-
treme," and that had the New Haven
confined itself to actual railroad activ-
fties under the same conditions that
prevailed in other respects 'it could
have paid dividend of per cent for
the fiscal year 1912 and carried to sur
plus account $1,794. 900 instead of show
ing deficit of $930,0O0.'
That the New Havens agreement with
the Boston and Albany is "violative
of the spirit of the statute against the
restraint of competition and should be
cancelled" 'In 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.
almost Exclusive Monopoly
That the Boston and Names merger
with the New Haven. If permitted to
stand will result In IAN almost exclusive
monopoly of transportation facilities by
railroad in the greater part of New
England"
That passenger train service, with
out considering safety of operation. on
| the New Haven. is distinctly better than
any other line entering New York, and
that of the Boston and Maine equally
as good. Both roads, however, are
criticised adversely for lack of steel
cars
That the freight service of the Boston
and Maine lis much less reliable than
that of either the Pennsylvania or the
Baltimore and Ohio, while that of the
New Haven is slightly inferior to the
Pennsylvania, but about on par with
the Baltimore and Ohio"
Fares Favorable
That passenger fares in New England,
have been more Favorable 10 the local
travelling public than in any other por-
ton of the United States.
That ''any betterment of railroad condi-
tions in New England must begin with
the assurance that the New Haven man.
agement will act not only prudently, but,
above all. within the letter and the spirit
of the law
1t is shown by the report that in 1903,
the total capitalization of the New Haven
was S93O0o,e00, and its operated mileage,
2040 miles. In 1912. it's capitalization was
$4lT,00o,000 an increase of 1924 900, goo; while
It's operated mileage was increased only
so miles In this period of nine years
the New Haven company acquired actual
ownership of about 500 miles of road which
1t previously had operated. expending ap-
proximately $40, 900 in obtaining the adj
ditonal mileage. II expended during the
nine years S96,0o0,oOo for betterrnents and
equipment making total of 1885,, 000,O00
devoted TO its railroad property.
This would leave the report points
out "the sum of $4,000, 900 which in nine
years had been expended in operations
outside its railroad sphere. To the meth
ods of investing that sum, the report de-
votes elaborate attention. Various trans
actions are taken up, one by one, and
analysed
Summarizing the passenger fare situa-
tion in New England Commissioner
Prouty says:
Its passenger fares have been more
favorable to the local travelling public
than in any other portion of the United
States. The recent decision of the Uni
ted States supreme court sustaining the
statutory 2-cent per mile fares in several
states will tend TO make that fare more
general in the future"