Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1913-04-23
Roundabout Tangled Mass of Fig.
ures Divulged at Hearing===New
Haven CO. Lost $500, 900 Annually
By Contract with Pullman CO.
Destroyed Steamboats, Of Navigation Acquisition to
Prevent Possible Competition by Another Co.

Boston, April 22.-An alleged loss tc
| the New York, New Haven & Hartford
Railroad of more than 100000 annually
as a result of its recent contract with
the Pullman Co., by which the latter
took over the parlor and sleeping cal
service of the railroad company. was
described. today, by David E. Brown
the examining accountant of the In
terstate Commerce Commission.
The testimony was given at the con-
tinued hearing of the service, rates
policies and financial transactions oil
the New York Co, before Commission
err Charles A. Prouty.
Inside history of the merger Of the
Boston x Maine and the New Haven
system was related for the first time,
Mr.. Brown told in detail Of the man.
rer III which the Boston & Maine stock
was acquired by the New Haven road,
with special attention to the part TAX
en- by j. L. Billiard of Meriden. CT, in
the matter.
Mr. Brown was examined, through
out the day. by Louis ID. Brandeis,
counsel for the Boston Fruit and Pro-
duce Exchange. The relations between
tke Now Haven Road and the Pullman
Co. were gone into. when Mr. Brown
put in evidence a copy of the agree
ment between the New Haven and the
Pullman Co. It provides that the Pull
man Co. shall pay the New Haven
Road on an earning basis. IL minimum
of $4,000 yearly. If the Pullman cars
in service exceed 200, the Pullman Co.
Is to pay 800 yearly for each addition
al car The Pullman Co. is entitled TO
all fares on parlor, chair and sleep
ing cars with the exception of the 81
extra fare charged on the so-called
limited trains. The Pullman Co. agrees
&c Hay the Railroad Co. fair cost for
performing certain services in regard
to repairs, and the expenses of heat
ing, lighting, watering and luherieat-
ing these cars.
The parlor, chair and sleeping cars
belonging to the New Haven were pur-
chased by the Pullman Co. for $780,
900.
Mr.. Brown. in compliance with {
request 10y Brandeis, compiled sets of
figures showing that the New Haver
in 1872 derived a net revenue of ST.
2f7.S97 from its parlor, chair and sleep
ing ear service.
He feckoned the expense due to IN
terest charges, to depreciation, TO heat
ing. lighting, watering and lubricatine
the cars and finally announced his
conclusions that the New Haven Co.
had incurred an annual loss of $407 o00
by turning over its parlor chair and
Steering car service to the Pullman Co.
Taking up the Boston 4 Maine mer-
ger, Mr.. Brown said that, May l. 1907,
the American Express Co. and the
Boston q Maine made 20-year con-
tract under which the Express Co.
agreed to pay to the railroad So per
cent. of it's gross receipts.
An examination of the records OF
the New England Navigation Co, a
subsidiary of the New Haven, showed
that antedating the contract between
the Express Co. and the Boston d
Maine, President G, s. Mellen of the
Navigation Co.. and the president of
the American Express Co., entered in
to a contract by which the Express Co.
agreed to sell to the Navigation Co
not less than $4,000 shares CT the Bos-
ton g. Maine in exchange for an equal
number OF the shares of the New Hav-
en- Railroad to be delivered by June l.
1907, to Lee, Higginson & Co. of Bos-
ton, the brokers' commission to be Sl.5t
a share, of which rs cents would be
paid by each party.
Still earlier, April 6, 1907. at special
| meeting of the directors of the New
| England Navigation Co., held at New
York, a resolution was adopted au