New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-09-17
.|NTERL0CK|NG BOARDS
BLAMED BY TRA|NMEN
Expert Shows How Demands
Are Affected by Inter
corporate Relations.
SIX SYSTEMS IN CONTROL
Witness Asserts That New York
Central Dominates IA Lines
Voting Securities in
Hands of Ten Men.

Testimony was put FORWARD AT NeSleI-
days session OF the arbitration board BY
Frank J. Warne. the statistical expert
for the tranmen. to show that as re-
suit Of the interlocking ownership OF rail
road stocks six great Eastern systems.
excepting the Reading. are subservient
10 two Of the other systems. He holds
that the intercorporate relationship be
tween the roads as TO stock ownership
has an important bearing on the issues
involved in tho employees dispute with
the Eastern railroads.
This intorcorporate ownership OF
stock i'm the railroads" he said. has the
natural result OF grouping into systems
7o.1S per cent. or more than two-thirds
OF tho ffty-seven roads I'm Eastern terri
tory On which the trainmen and conductors
have made demands. being controlled by
them. As a result We ind In the Eastern
territory six great systems, not including
the Reading. which are subsorvient to TWO
Of tho other systems.
The six systems. he said. arc tho New
Yor, Central. the New Haven. the Penn
syIvania. the Baltimore ohio the Erie
and the Chesapeake q Ohio. 1ho Ne"
York central. nc said. controlled through
majority ownership. joint ownership or
lease fourteen roads not including the
New York Central 4 Hudson RIVER l'aH-
road proper it's own line.
According TO the witness. the INTERIOR
porate relationship between the railroads
as 10 the ownership OF stock had an I'm
portant bearing on nearly all the issues
involved I'm tho conductors and tram
mems requests and nearly all important
questions affecting the railroads and inc
public were determined and dominated
by IT, Several questions were asked OF
tho witness which he said he could not
definitely answer one OF these ques-
tions. which was asked 10y A. ii. Smith,
Of the arbitrators representing the rail
roads. was whether lac thought or be
Iievcd that there was a duplication OF
revenue.
The witness then submitted a list 81 the
ten largest holders of voting securities in
ZOOS I'm the roads involved iu the present
demands The list showed ". Is. Van
dcrbilt to be the largest individual stock
holder and TO have held common stock oi
the par value Of No1Or", controlling
10000 votes. The General Board OF hdH-
cation. ne said. had common stock ~ IN"
road that wear OF par value ~ fi.'"''''
The list showcd the New York Central
Hudson River Railroad 60 hold common
stock In the Rutland Railroad in that
year Of the par value Of $4,000. which
enabled II to control $500 votes. iic went
over all the roads iu which th" ten lars-
est holders OF voting securities carried
stock I'm 1905. giving their names and the
different Eastern roads iu which th"y
held the stock and It's par value, with the
number OF votes controlled
In reply TO a question the witness said
be believed the owner or owners Of 'i
per cent Of the stock on road had a
controlling interest ne did not give
details as 10 how the issues involved Goo
the demands would Toe affected by the tn
tercorporatc ownership 81 stock. which
the tables and lists he submitted were de-
signed 10 show.
Before he testified regarding intcrlDrk-
Ing ownership he read from number of
tables statements as 20 the increased cost
Of living from 1890 10 1912. Practically
all commodities for household cousump-
ton. with the exception Of sugar. which
had decreased. were shown 10 have largely
Increased I'm prices.
During the forenoon session Elisha Ice.
chairman Of the managers committee,
referring 10 The testimony ~ the witness
on the preceding day regarding the
trades classcd as extra hazardous by the
lifo Insurance companies, said that the
witness had spoken Of brewery workers,
laborcrs and others along with the train
men as being engaged I'm hazardous occu-
nations adding This does not appear
TO be complimentary to the trainmen.'
"1f you mean II Is not complimentary
II he classed with brewery employees"
said A. p Garretson. attorney for the
employees. Il cannot see It, II is not
urcomplmentary 10 80 assed with men
in any honest calling. and there are more
on your side familiar directly and iudi-
rcctly with brewery employees than on our
side"
Mr. Lee made Sood-humorcd reply
and the matter dropped.
Or Waruc will be on the stand again
to-day. When the session was over ne
said he expects 20 he put under q severe
cross-examination when he is through
with his tables. II IS said that the rep
rescntatiycs Of the railroads will cross
examine him at great length when he
has completely finished his testimony.
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