Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1913-04-23

| that the JOY Line had been operated
at a deficit but $40 snare was paid
by the Navigation Company for is
stock. The appraisal of the JOY Line
| holdings was made by +. M. Dun
more, a JOY Line official, and aggre-
gated $4,000. To this was added
| $3.50, 600 for good will"
Was there anything in the records
TO indicate how this good will was fig
! ured?" asked Mr. Brandeis.
No" said the witness.
Then you do not know whether thn
formula of dividing the outstanding
debentures by four was employed
Il do not" answered Mr. Brown
In April, 1907, the Navigation Company
sold the Boston line of the JOY Steam
ship Co, to G. w Morse WHO then con
| troIled the Metropolitan Steamship Co,
operating between New York and Boston
for 100000. Mir. Morse paid by check,
which was deposited by the Bank of
/ North America New York.
When the hearing opened. today, Dam
c II. Hayes, general solicitor of the
Merchants and Miners Transportation
Co, presented printed statement con
tanning his testimony before the Con-
SressioHal committee on merchant ma
rine and fisheries at Washington, last
February. This testimony told of the
purchase Of 80 per cent. Of the stock of
| the Merchants and Miners Line by the
New Haven system. 1t was not read ut
the hearing but copies of the statement
were given to interested persons.
Before the examination of Mr. Brown
was taken up Mr.. Prouty said that his
time was limited and he asked Mr. Bran
deis how long his examination of the
witness would last Mr. Brandeis said
that it would be lengthy and he detailed
number of things which he expected to
develop in the course of the testimony.
The commissioner said that the inquiry
would not 80 too deeply into details and
that il would be general rather than spe-
cific, although specific illustrations might.
be used9
Vice President f. G.. auckland of the
New Haven Road argued that the in
dury should be confined to the rates, SER
vice and policies of the New Haven and
its subsidiary companies. He claimed
| that be did not understand that the dnan-
eial transactions of the company We're to
be investigated at this time and he ask
Il
special hearing before an examiner.
The commissioner ruled that the hear
ing should proceed with the inquiry into
| financial transactions. and he allowed
Mr. Brandeis the entire day for hts ex-
animation of Mr. brown
AT the afternoon session. Mr. Brandeis
took up the acquisition by the New I1a-
Ven system of the Maine Steamship Co.
of New Jersey.
In January. 1909, Mr. Brown said the
New Haven acquired III gold bonds of
the Maine Steamship co. of New Jer-
seN for $3.50 shares of the New Haven
Roads capital stock The United States
TRANSFORMATION Co, acquired 10000
shares of stock and Il bonds in March.
1908 The bonds which were acquired
in 1909. were sold To the Hartford x
New York Transportation Co. another
New Haven subsidiary.
The New England Navigation Co,
il, June. 1912. acquired $4,000 shares
of preferred stock of the Eastern
Steamship Co, paying the book value
of $l.i62,500; 10000 shares common
stock, paying book value of 4n.oe0;
! a2.5Q0o 900. par value bonds at 81. a
total investment ut book value of ST.
40, 900. The Navigation Company ac-
quired this interest in the Eastern
Steamship Co. from the Hartford and
New York Transportation Co. Mr..
Brown was unable to tell where or
when the Hartford q New York
TRANSFORMATION Co, had obtained this
stock or how much was paid for it.
The New England Navigation Co., in
February. 1907. acquired through Kid
der Peabody & Co. of Boston, 1870
shares of the Boston & Philadelphia
Steamship Co, at prices ranging from
1914 to lS5 Il share, and commission
of 1926 a share to the bankers.
The purchase was completed, April
properties the Boston * Philadelphia
Steamship Co. had paid dividends OF
Us per cent. annually for four years,
with an extra dividend of S15 q share
in 1908.
These properties and assets of the
Boston & Philadelphia Line We're sold
To the Merchants & Miners Line by
the Navigation Co, for $3,2a0.000 in A
per cent. Merchant & Miners deben
lures ON May IS, 1907, the New Eng
land Navigation Co exchanged 10000
shares of stock of the New Haven
Railroad for $4,000 shares of Merchants
& Miners stock, valued at $4,000. 900.
This transaction, Mr.. Brown said, re-
suited in a loss to the New Haven of
about $4,000.
ATTACKS ACCOUNTANTS.