The Bridgeport evening farmer., 1913-05-16
Exhaustive Document Filed With Interstate Commerce Commission Asks for Pro- nOunCement Against Methods of
 Boston Investigator
Excellence of SeGe Necessity to Raise Raes to Provide for Future, and Defence of New HaVens Methods of AC counting Are EmhOded-MeNen Acting Solely for Interests of Road and Always in AC-
 cord With Directors


 Washington. May 16-The New York, New Haven & Hartford Railroad Company has filed a brief with the In terState Commerce Commission based on testimony taken in the investtga- ton of rates, classiffeations, regula- rfonS and practices of carriers in New England
 The brief attacks Louis D. Brandeis, who assumed q leading part in the tn- vestigatfon, and says that the New Haven Is attacked by Mr. Brandeis alone with a destructive criticism of it's service, it's rates and its financial and accounting methods. The brief adds:
 .'ShaI MT. Brandeis. acting for him self, his theory and contentious being dtsapproved again and again by inn partial commissions and tribunals, be permitted to set up and maintain his opinion against the opinion of men ap- pointed by the stockholders Of these roads to conduct their affairs?
 sFIt seems conclusive when the citi- zens of the three States of Connecti- cut. Rhode Island and Massachusetts own substantially 50 per cent. of a railroad which operates in those States, that when a large percentage of these stockholders are trustees and women. that when they are advised from year to year as to what the mznagement is doing and vote to re- turn their friends and neighborB as directors Of the corrcrat1ons to con tinue the management 1t is not for MT. Brandefs. representing nobody but nfuaEelf to erdeayor to crittciSe, tear apart and destroy these properties and terminate g. policy in which New Eng land believes. We look to the com mission to make such a pronounce ment az will put an end to further af- tack of this nature
 Excelience Of service, a necessity to raise rates if the facilities for future growth are to be furnished and a de- fence of financial and accounting ! methods are set forth in the brief Particular stress is laid on the neces- sfty for an increase in rates The In crease in wages of trainmen in 1910- 1911 hit the Boston G Maine road hard ana an earning of s.S2 per cent. on its year ended June 30. 1910, dropped to less than three-fourths of per cent. for the year following.
 A policy of retrenchment was inaug- urated and for the year ended June 38 1919, there was an earning of 2 3-4 per cent on preferred and common stock But with the policy of re- trenchxnent came complaints of made ouate service The number of ern- ployes was increased and operating expenses went up again The conclu- ston of the railroad officials IS that the rubIic demands more than 1t pays for In the way of service and that more would be paid willingly if the cond1- lions under which the railroad labors
 
 were understood
 It is pointed out that neither the Boston & Maine nor the New York, New Haven & Hartford earned last year more than a 4 per cent net in- come on it's property, although the value of the property in the case of the former was an original cost value, no physical valuation of this road having ever been made. It is con tended that the Boston & Maine is grossly undervalued, and this fact, taken in connection with a frequent opinion of courts that railroad Is entitled to earnings of Der cent, is' offered further evidence of the ne cessity for an increase in rates A comparison of rates on other railroads Is submitted in support of the argu- ment that railroad rates in New Eng land are very low
 while not admitting that the charge of unsatisfactory service has been proved against the New York, New Haven and Hartford and the lines which this corporation con ntrols, the makers of this brief agree that there are abundant opportunities for i'm provement- Business Is constantly growing and a great deal of money must be expended if the railroads are bo keep up Freight cars and 1ocolno- lives are needed, particularly by the Boston and Maine To issue stock would bring in money, but the laws of Massachusetts place restrictions on the sale of stock which make it difei- cult to raise money.
 The railroad officials say that in or der to finance needed improvements it Is necessary that stock shall be- dis posed of in large quantities at par or higher. The only way to place stock on such a basis Is to increase the net earnings of the railroad that a subz EtantiRl dividend may be paid, and the only way to increase the net earnings Is to increase the charges for service to the public
 As for the service on the New Eng land rair pads, it is insisted that the evidence discloses no widespread dis satisfaction. The Boston and Maine railroad alone makes over 10000, GOO shipments in a year, and less than a thousand complaints appear rec ord against three leading railroads in New England. Figures are submitted to show that more than 95 per cent. Of shipments from Bridge port. Conn., ] move in normal time and, within one day of normal time, while s9 per cent, of shipments from Nashua, N. H., do aha amxnA