The Barre daily times. (Barre, Vt.) 1897-1959, 1913-07-09
Interstate Commerce Com
mission Scores New Ha-
+ ven's Management of New
England Subsidiaries in
Unmeasured Words
OUTSIDE HANDLING
CALLED "WASTEFUL"
Calls Agreement with Bos-
ton & Albany a Violation
of the Spirit of the Stat
ute, but 1t Issues No Order

Washington d. c., July 9.-FinanciaI
operations of the New York, New Ha
ven & Hartford railroad, its ownership
of trolley lines and control of allied New
England railways, are condemned in un-
measured terms by the interstate com
merce commission in the report OF its
investigation made public here to-day
The commissions conclusions are:
That the Outside" financial manage
ment has been "wasteful in the ex-
treme,' and that had the New Haven
confined itself to actual railroad activi-
ties under the same conditions that pre-
vailed in other respects sit could have
paid a dividend of per cent. for the
fiscal year 1912 and carried to surplus
account Sl,794,00o instead of showing
q deficit of S03e,000."
That the New Havens agreement with
the Boston & Albany is "violative of the
spirit of the statute against the re-
straint of competition and should be can
celled" 'In our opinion" says the COM
mission, ''this line should be kept entire
ly free from New Haven control"
That the New Haven should divest it.
self of its trolley lines, not because the
present ownership is in violation OF
law but because such ownership might
be used to prevent the building of com
peting lines in the future.
That the Boston & Names merger
with the New Haven. if permitted to
stand, will result in can almost exclu-
sive monopoly of transportation faeili-
ties by railroad in the greater part of
New England
That passenger train service, without
considering safety of operation, on the
New Haven, is distinctly better than any
other line entering New York, and that
of the Boston & Maine equally as good.
Both roads, however, are criticised adj
yerseIy for lack of steel cars.
That the freight service of the Boston
& Maine "is much less reliable than
tnat of either the Pennsylvania or the
Baltimore & Ohio, while that of the New
Haven is slightly inferior to the Penn
sylvania but about on par with the
Baltimore & Ohio"
That passenger fares in New England,
have been more favorable to the local
travelling public than in any other por-
ton of the United States.
ditions in New England must begin with
the assurance that the New Haven man
agement will act not only prudently,
but, above all, within the letter and
the spirit of the law"
Recommendations.
No order was made by the commission,
but in its opinion, the following PROPOSE
hap 10,
all railroads, lie at the foundation of
adequate railroad regulations
"Every interstate railroad should be
prohibited from expending money or in
curing liabilities or acquiring property
not in the operation of its railroad or
in the legitimate improvement, extension
OF development of that railroad.
"No interstate railroad should be per-
mitted to lease or purchase any other
railroad, nor to acquire the stocks or
securities of any other railroads, nor to
guarantee the same, directly or indirect
ly without the approval of the federal
government.
mo stocks or bonds should be issued
by an interstate railroad except for the
purposes sanctioned in the two preced-
ing paragraphs, and none should be is
sued without the approval of the federal
government"
Commissioners Clements and Marble
submitted a concurring opinion, in which
they heartily agree with the report but
make their position clear as to some
issues. Concerning the merger of the
New Haven and the Boston & Maine.
they say this is phase of the subject
that should be left to Congress. The
New Haven and the Boston & Maine
were shown by the report to be sep |
arate organically. They are not one
system, but two systems under one man
agement. Therefore, closer sIperinten-
dence with corresponding gains in eff |
cency and safety might be expected |
from dissolution of the merger
The inquiry resulting in to-day's re- |
port was begun about a year ago by the |
upon its own initiative. in |
of numerous and persistent |
of the railroad rates. regu- |
lations and service in New England. The |
carriers particularly investigated were |
the New York, New Haven & Hartford; |
the Boston & Maine; and the Maine /
Central Months were devoted to ex-
animation of books and accounts and /
% uaNs NeEe utNoleu W puDllc Heaflngs,
in the course of which more than 5000 I
pages OF testimony were taken.
The report is divided under four gem
eral heads, Service Rates" Fin
ances' and The Remedy Commission
er Prouty, who has devoted much of his
time during the last year to the inquiry,
discusses exhaustively each phase The
report aggregates nearly 10000 words.
(Continued on fourth nagel