Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-07-09

X.
tr0lleys cost the New Haven to date
about s24.00O.000 and have been vaiueo
at something more than one-Quarter OF
that amount.
Acquisition Of Trolley Lines.
The acquisition by the New Haven
of trolley lines in Massachusetts Is re-
viewed at length. Particular refer
ence is made to the operations of j.
L. Billiard in connection with the pur
chase by the New Haven of Boston and
Maine stock. The conclusion of the
report is that the New Haven com
pany gave away to Billiard and his as
sociates about 100000 of the prop
erty of the New Haven
These transactions" says the report.
ARE probably extreme. but by no means
solitary. The other outside ventures
Of the New Haven company have Deen
almost uniformly prosecuted at loss
This is true of its trolley acquisitions
in Connecticut and MASSACHUSETTS,, as
well as Rhode Island and New York;
it is true of its purchase OF rallroao
stocks and steamship lines MT MeI-
len entered into an elaborate de1ense
of his management of this property
and he was able to point to but a SIN
gle instance in which. up TO the pres
ent time. the venture had been prom,
able He had purchased the Centrai
Railroad of New England. ana the
profit upon that transaction had been
handsome one.
The transactions of President Mellen
in giving his personal notes to mis- own
company for stock are discussed at
length by Commissioner Prouty.
On transactions in New Haven stock.
bought with such notes, the report says
there were prots of 100000, but the New
Haven's books do not show to what use
the money had been put.
Campaign Expenditures.
His statement was that the amount
had been used in campaign expenditures
during the summer and fall of 1904;
that this had been done by direction
of his directors. and that they had sub
sequentIy ratified his act. These cam
paign contributions call for no com
ment from The act of the New
Haven was not peculiar to that COM
pany at that time. What may be open
to criticism is the lax way in which
this matter was handled between an
officer of this company and its direc-
tors The special account shows a pay
ment to Mr.. Mellen of $4,000 in cash.
which he passed over to the republican
national campaign committee 1t
shows a second payment to Mr.. Buck
company. of $500. which was turned
over to the republican state committee
of Rhode Island.
Suggestion of Remedy.
In discussing the remedy to be applied
to tie general railroad situation, Commits
sioner Prouty says:
What is needed first of eli to improve
the railroad situation in New England
is rest and an opportunity for construc-
tive work. There is much truth in the
claim Of these carriers that they have
been so occupied with investigations and
so criticised by the public that no fair
opportunity has been given for the opera
ton of the railroad properties. No rail-
road management can succeed without
the support of the puolic which it serves
1t must not be forgotten that the rail-
road is a public servant in fact as we'll
as in name. and that the service which it
renders depends largely upon the treat
ment which it receives from its master.
But upon what terms is peace to be
secured? In the past the New Haven
Company. which has now become the
dominant factor and which Is mainly to
be considered. has proceeded in open
violation of some laws and in disregard
of the spirit, IL not the letter. of others
pany Is primarily responsible for this I'M
fortunate agitation That agitation can
not stop, and ought not to stop. until it's
cause is removed. Any betterment Of
railroad conditions in New England must
begin with the assurance that the New
Haven management will act not only
prudently, but, above all. within the let
ter and the spirit of the law"
The commission, the report points out,
Is keenly alive to the fact that the stocks
Of both the New Haven and the Boston
and Maine owned largely in New
England by estates and persons who de-
pend upon them as an investment.
Widows and Orphans Losers.
1T Is unfortunate continues the re-
port, that the widows and orphans must
suffer. but they. in theory, are responsible
for the management which their action, |
or possibly their failure to act. has sane
toned If the stockholders of these prop |
critics. instead of vilifyins the critics of |
the New Haven. had given some atten- |
ton to the charges made. their property |
would today .e of greater value and the |
problem an easier one.
The Panama canal act of 1911 requires
the railroads to relinquish ownership or
contr.l of steamship lines competing with
their rail lines. The report suggests that |
this law disposes Of the matter Of the
New Haven's water lines. 1t continues:
In our opinion the New Haven should
divest itself Of it's trolley lines. The acqui-
stion of trolley lines as well as steam
lines which are competitive is already
prohibited, but this does not reach the
root of the matter"