The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1913-07-09
Il Is Declared Railroads Should
Be Prohibited From Acqulr-
Ing Other Property
REPORT is SUBMITTED TODAY

Washington. July 9.-The financial
operations of the New York, New
Haven IL Hartford railroad. its Owner
ship Of trolley lines and control ~ nj
lied New England railways. are con-
demned in unmeasurcd terms by the
interstate commerce commission in a
report of it's investigation, made pub
lie here today.
Among the commissions conclusions
are. that outside financial manage
ment has been wasteful in extreme;
self to actual railroad activities under
the same conditions that prevailed in
other respects 1T could have paid a
dividend OF eight per cent for the fis-
cal year of 1912 and carried a surplus
account Of sl.7a4, 900 instead of show
ing deficit of f93o,OO0": and that the
New Haven's agreement with the Bos-
ton n Albany is "violativc OF the spirit
Of the statute against the restraint OF
competition and should he cancelled"
In our opinion SAYS the commission,
this line should be kept entirely free
from New Haven control, that the
New Haven should dlvest itself of its
trolley lines. not because the present
ownership Is q violation of law, but
because such ownership might be used
10 prevent the building of competing
lines in the future; that the Boston IL
Moir.'u Naxp Haven
# permitted to stand. will result i'm an
almost exclusive monopoly of trans
portation facilities by the railroad in
the greatest part Of New England
that the passenger train service with
out considering the safety of opera
tion on the New Haven, is distinctly
better than on any other lines enter
ing New York and that of the Boston
a. Maine is equally as good. Both
roads, however. are adversely criti-
cized for la * of steel cars; that the
freight service on the Boston a. Maine
Is much less reliable than that on
either the Pennsylvania or Baltimore
g. ohio, while the New Haven is
slightly inferior To the Pennsylvania
hut about on par with the Balti-
more & Ohio; that any betterment
in railroad conditions in New England
New Haven MANAGEMENT will act. not
only prudently. but. above all, within
the letter and spirit of the law"
Lays Down General Proposition.
NJ order was made by the commits
sion, but in it's opinion the following
proposition, which will have "A nation
81 application on ali railroads, lies at
the foundation of adequate railroad
regulation:
livery Interstate railroad should be
prohibited from expending money or
mourning liabilities or acquiring prop
eri\ not in the operation Of its rail-
road or In legitimate Improvement, eX-
tension or development OF that rail-
road
No interstate railroad should he
permitted to lease or purchase any
other railroad, nor to acquire stocks or
securities in any other railroad nor to
guarantee the same, directly or indi-
fectly, without the approval of the
FEDERAL government"
commissioners Clements and Marble
submitted concurring opinion, in
winch they agree heartily with the
tepert' but make their position clear
as To some of the issues mentioned.
concerning the merger of the New
raven and Boston a. Maine they as
"rl that this is phase of the sub
!ett that should be left to Congress
Just as the issues under the antitrust
AW have been left To the courts. II 1t
we're properly to be considered here,
"o"eNer, We would give weight to the
suggestion that the merger has so
overloaded the executive boards of the
e"'re aggregation as To- impair not
ohlS correct and economical financial
ADMINISTRATION, but also efficiency and
safety of operation"
MILLIONS Spent Outside Sphere.
me inquiry, begun about year ago
~ the commission upon it's own ini-
s"'''e' In consequence of persistent
p'aihts OF railroad rates. regula-
uons and service in New England.
,'o'e Than ak thousand pages Of tes-
"o"y were taken, and the report ag-
sates thirty thousand words.
,o shown by the report that in
'"e total capitalization of the