The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-07-09
find MUCH FAULT.
fcontinued from PAGE one.)

control"
| Should Cut Loose From TrOlleys.
That the New Haven should diyest
itself of it's trolley lines, not because
the present ownership is in violation
of law, but because such ownership
might be used to prevent the building
of competing lines in the future.
That the Boston & Maine merger
with the New Haven, if permitted to
stand, will reach in IAN almost ex-
elusive monopoly of transportation IA
cilities by railroads 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 lire entering New York, and
that Of the Boston q Maine equally
as good. Both roads, however, ale
criticised adversely for lack of steel
cars. That the freight service of the
Boston & Maine is much less reliable
than that of either the Pennsylvania
or the Baltimore & Ohio while that OF
the New Haven is slightly inferior 10
the Pennsylvania but about on a par
with the Baltimore & Ohio. That pas
senger fares in New England have been
more favorable to the local travelling
public than in any other portion of the
United States.
No Order Made.
No order was made by the commits
sion but in its opinion, the following
prOpOSlIlOnS WHICH nave HdIlOudl bP-
plication to all railroads, lie at the
foundation of adequate railroad regu-
lation:
Every interstate railroad should be
prohibited from expanding money ar
mourning liabilities acquiring pro-
perty not in the operation of its rail-
road or in the legitimate Improvement,
extension or development of that rail-
road.
mo interstate railroad should be
permitted to lease or purchase any
other railroad nor to acquire the
stocks or securities of any other rail-
roads, nor to guarantee the same, di-
rectly or indirectly, without the ap-
prevail OF the federal government"
Commissioners Clements and Mar
BILE submitted a cOncurring opinion in
which they agree partially with the
report, but make their position clear
as to some of the issues mentioned |
concerning the merger of the New
Haven and the Boston & Maine, they
assert that this is a phase of the sub |
ject that should be left to the con- |
gress."
Should Reform Expenditures.
The report strongly suggests that !
increased net income for the Boston
& Maine should be obtained by a re-
form in expenditures rather than by |
increase of rates.
mo stocks or bonds should be is |
sued by an interstate railroad, except |
for the purposes sanctioned in the two |
pIeCeQluS ana none |
should be issued without the approval |
of the federal government" they say. |
The inquiry reaching in today reports !
was begun about a year ago by the !
commission upon its own initiative in |
consequence of numerous and persist |
ent complaints of the railroad rates, |
regulations and service in New Eng
land. The carriers particularly inves- |
tigated We're the New York, New
Haven and Hartford; the Boston and
Maine, and the Maine Central.
In an exhaustive discussion of the
financial affairs of the New Haven and
the Boston and Maine, Commissioner
Prouty indicates clearly that the in
vestigation was not into the solvency
or insolvency of the New Haven COM
pany, but rather into the character of
it's financial operations.
1t is shown by the report that in
1908 the total capitalization of the New
Haven was 1913, 100000 and it's operated
mileage 2,040 miles. In 1912 it's capitali- |
zation was SALT ,000, 900, an increase OF
1924, 100000, while its operated mileage |
was Increased only so miles. In this
period of nine years, the New Haven
company acquired actual ownership of |
about 800 miles of road which it pre-
viously had operated, eXpending ap-
SAC, 900 in obtaining the
additional mileage. 1t expended during
the nine years $96, 100000 for better
ments and equipment, making total
OF $1oo,OOV,UOU devoted 10 1IS rdIlTodu
This would leave the report points
out 1.-The sum of S2O4, 00O, 900, which in
nine years has been expended in opera
lions outside it's railroad sphere"
In it's acquisition of the Rhode Is
land trolley lines the report says the
New Haven gave $13, 100000 for nothing.
The New York, West Chester & Bos-
ton railway, the evidence disclosed,
when opened for business in 1912 had
cost the New Haven about $4,000 0C,
$12, 100000 in excess of the value of the
property on the New Haven's own
showing.
Particular reference is made to the
operations of J. L. Billiard in connet-
ton with the purchase by the New
Haven of Boston & Maine stock The
conclusion of the report is that the
New Haver. company gave away to
Billiard and his associates, about So -
100000 of the property of the New
Haven.
Mr. Mellen's campaign contributions
are strongly commented on in the re-
port which says also, the marine equip
ment of the New Haven was manipu-
lated Our general conclusion" il
continues, lis that the outside fnan-
ciaI operations of the New Haven COM
pany for the last nine years have beer
w2stefuI in the extreme, and that tie
methods by which those operations
have been conducted are unnecessary
involved and complex, for the reason
the present management OF that COM
panv started out with the purpose of
controlling the transportation facilities
of New England. To this purpose, ana ,
its attempted execution, can be traced
every one of these financial misfortuncs
and derelictions.
fn that