Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1913-09-12
Public Servicec commission
!. viii Examine Accounts
Of New Haren Road In Private
To Determine Bond Issue. .
Depreciation a Esulpmsnt a. ~.
plicable 10 Request discussed.

Boston, Sept. 11-After a day spent
in discussing the question of what
constituted a reasonable charge for de-
probation in the equipment of rail-
road. as applicable to the petition OF
the New York, New Haven & Hart
ford Railroad for the approval of a
So, 006, 000 bond issue, the Massaeliu-
sets Public Service Commission an
nounced. today, that the examinations
of the accounts of the road would be
conducted in private. The hearing will
go on. tomorrow. when those objecting
to the bond issue will be heard, after
which it is expected public sessions
will be suspended until the expert ac-
ccpntants are ready with their fig-
ures.
Tile researches of H. Larve Brown.
counsel for the commission. with the
aid of Vice President H. NJ. Kocher-
sperger Of the railroad. into various
financial transactions of the company
was interrupted just before lunch
time. by a lively clash between Charles
F. Choate, Jr., counsel for the road,
and Commissioner George W. Ander-
son. in which the latter declared that
IL a retilroad company could not con-
duct its finances properly it ought to
go into the hands of a receiver. or is
she receivers certificates to obtain
equipment.
But that is rather a scare and does
not help US a Bit" remarked Mr.. An
dcrso1.
Vice President Kochersperger was
practically the only witness of the day.
as the remarks of Joseph ONeil pres
idert of the Federal Trust Co of Bos-
ter. in support of the bond issue, were
brief.
The vice president outlined the pur-
poses to which the company win apply
the money, including large expendi-
lures along the Shore Line. He said
that the s67,0O0,60O would be hardly
sufficient to carry out all of the COM
pany's plans for placing the road In
first-ciass shape and that several mil.
lions more would be required.
The question of depreciation developed
the fact that in computing depreciation
there is a. difference in the methods OF
the New Haven Co. and the Public Ser.
vice Commission. Mr., Kochersperger en-
deavored to eniigften the. Commission on
the New Haven's methods, but Chairman
Fred j. Macleod and Mr. Anderson of
the commission claimed that they could
not understand it. The latter declared
that he believed that the depreciation
charges should be fully considered be-
fore the bond issue was approved.
Mr.. Choate replied that the commits
sion ought not to withhold such approx
al because some of the bookkeeping
methods of past years were opened to
question and the public demanded new
equipment at once and should not be
forced to wait until the road had earned
the money to buy 1t.
II guess that a road that has paid such
dividends as the New Haven could get
along all right" retorted Mr.. Anderson
Them. rising in his seat, he said: ut
might follow that corporation could
run to some extent on improper methods
If this kind in obtaining equipment but
it would be better if it went into the
hands of receiver or issued receivers
certificates to buy now equipment Then
he added smilingly: But that is scara
and does not help us a bit"
Vice President Kochersperger continued
his testimony at the afternoon session
and was telling of the sale of the trolley
lines to the Connecticut Co for 40oOs 600
when the commission halted proceedings
and assembled counsel at the desk Come
missioner Anderson said that the inves4
tigation was proceeding up blind alleys's
and that very little progress was being
made He suggested, that the experts OF
the commission go over the books OF tho
company in order to clear up all ques.
tons. This seemed satisfactory and the
hearing went over until tomorrow.