The Bridgeport evening farmer. [volume] (Bridgeport, Conn.) 1866-1917, 1913-02-26
THE FARMER: FEBRUARY 26, 1913
WILSON FILES BILL
OF PARTICULARS
CONTINUED from Page ~
BILL OF PARTICULARS


Haven & Hartford Railroad Com
pany.
AS of June 80, 1906, the New York,
New Haven and Hartford Railroad
Company, hereafter called the New
Haven Company, reported to the Rail-
road Commission stocks and bonds
amounting to 100000, apportion-
ed entirely for steam railroads. The
stock of the company in this year sold
as high as 1904 a share, but not low
er than $3.50 a share, the par value
being 500 per share. After paying
operating expenses and other charges,
including interest and dividends, the
company had, in 1906, a surplus net
income of 1926, 99S.
AS of May 81, 1907, the New Haven
Company merged with and in and
became the Consolidated Railway
Company, a Connecticut corporation
which owned street railways and
steamships. But the said New Haven
Company, after becoming the said
street railway company, retained the
name, New York, New Haven and
Hartford Railroad Company
AS of June 80, 1908, the merged
New Haven Company reported that its
stock and bonds had increased more
than three times, and to 1852, 1922, $50,
and accounted for said increase by
attributing it to the merger of May
81, 1907, as above described. OF the
stated amount $194, 1000 was set
down to railways" and $157, 6s2, 900
to t+other properties
The effect of this merger was i'm
mediate and disastrous. The stock
of the New Haven Company dropped
to 1927 share and upon this date
(F'eb. "a, 1919 is quoted at 1925 per
share.
The great surplus of 1906 disap-
peared and there appeared a deficit,
after payment of dividends, of 3d.
516.692.
In 1909 there was a deficit of s45s.
613.
In 1911 there was a deficit of ST.
267,5S9.
In 1912 there was a deficit of
During the period following said
merger and until June 80, 1912, the
steam road properties continued to
be, as they always had been, very
productive. Their gross business and
their gross and net profits increased
enormously.
But these earnings have been
sqIandered, wasted or dissipated be-
cause of the purchase, at extravagant
and unjustif1ab1e prices, of the con-
troll of street railways and steamships
a nd, in some cases of other railroad
lines.
The result of these acquisitions of
"other properties" following the
merger of 1907, was an almost com
plete monopoly of transportation by
steam railroad, by street railway and
by water in New England.
This monopoly was mere Incl
dent of the transactions by which 1T
was created. The real purpose of
these transactions was by legal trick
and device to transfer the great and
real values represented by the steam
road properties-owned by the New
Haven Company prior to the merger
into the pockets of the promoters
and owners, and other insiders, en-
gagged in building or operating street
railway companies, steamship compa-
MES, or other properties.
The New Haven Company purchaS-
ed for $24,22O,oO0 control of The
Rhode Island Company. A commit
tee appointed by the Massachusetts,
Legislature appraised this property as
worth no more than 100000, and
it pays to the New Haven Company
less than two per cent. on it's cost of
acquisition.
The, New Haven has invested $4O,-
100000 in certain street railways OPP
Grated by the Connecticut Company.
This investment pays no more than
two and one-ha1f per cent. and the
value of the property was appraised
| for millions less than the purchase
price.
The New Haven Company has in
vested millions in the Berkshire
Street Railway Company, at figure
which returns about one and one
quarter per cent. on the cost of In
vestment.
The New Haven Company acquired
a. trolley line from North Adams,
Mass, to Bennington, VT, and also a
line from Bennington to Hoosac Falls,
N. Y. The Massachusetts Joint Com
mission has shown that this property
has failed to meet operating expenses.
i The New Haven Company has in
vested many millions i'll other prop
critics, at much more than their val
ue, and which do not pay an ade-
quate return upon the investment.
1t is the drain of these unproduc-
tive properties upon the rich and
productive steam road property, own
ed by the New Haven before the nner-
ger. which has caused the heavy
slump in New Haven stock values and
the great deficits in its income ac-
count.
The stock of the New Haven Com
pany pays eight per cent. The av-
erage interest paid upon the bonded
debt of the company is about four and
thirty-hundredths per cent.
Many millions of such securities
drawing eight per cent. or an av-
erage of 4.30 per cent-have been is
sued for securities that pay two per
cent. or less. It is quite evident that
the steam road earnings must meet
the deficiency, if it is met.
When a share of eight per cent.
stock backed by a rich steam road is
exchanged for a share of two per cent.
stock backed by poverty stricken
trolley road, the owner of the latter
share of stock receives something of
value and the owner of the former
share loses something of value.
This policy of exchanging good
property for poor property has result
ed in much injury to Connecticut and
New England. The legitimate ex-
pansion of street railway, and steam
railroad transportation has been sti-
fled. Passenger and freight service
has deteriorated.
The number of casualties have been
roads and street railways. Wrecks