The evening world. [volume] (New York, N.Y.) 1887-1931, 1913-09-08
BANKER CONTROL
Of NEW HAVEN
TO Be OPPOSED
Stockholders Protective Com.
mittee Calls President Elliott
to Boston for Consultation.
BOND ISSUE PROFITS
Banker Management Must
Cease If Road Is to Pros
per, Is Said.
BOND ISSUE PROFITS
especial from OSa4 0sssssDoaasas Of
the 1vsning NosiA)

Especial from 0SaR 0sssssDeaasas Of
the 1vssin6 IosiA)
BOSTON. Mass. Sept s.-Ths Msssa-
chusstts Public Service Commission bs.
| sins tomorrow an investigation into
tho high financing Of the New Haven
Railroad that will show how the Morgan
banker management has piled up hun.
/ drsds Of millions Of indebtedness and
made vast prohts for the underwriting
syndicatss. II 10 . new phase Of New
Haven exposure. There have been in.
vestiGations revealing the attempts to
tiles Of New England. the purchase Of
trolley companies. the Absorption Of
| steamship lines ana the gobbling of
costly railway lines. but the probe has
mover been struck before into the vitals
! OF the banking house profits. and the
monument Of security issues they have
put out.
President Howard Elliott came to
Boston to-day TO face the storm. A
meeting Of the stockholders' protective
COMMITTEES. Of which George Won L.
| Meyer 10 chairman. was called at noon
In the Old Colony Trust Company. Mr..
Elliott appeared and there was . pro-
lonEed conference.
1t was voted by the committee to ap-
pear before tho Public Service Com
mission tomorrow and urge the grant
ing OF authority for Issue Of the bonds
for the bensft Of the property to In
sure the carrying out Of President II.
liott's programme for improvements"
ACTION TAKEN BECAUSE OF
COMING BIG BOND ISSUE.
The ofiiciai action Of the committee
10 based on an application Of the New
Haven to issue sixty -seven millions Of
per cent. bonds. which J. p. Morgan
4 Co. already have aGreed on behalf Of
an underwriting syndicate 20 take ct
par. less ia per cent. commission.
Morgan takes ons-hak per cent. for his
own profit and parcels out the remain
ing per cent. to the underwater.
Despite all denials. there IL cstrange-
ment between Now England bankers
and Wall Street bankers. There 10
strong feeling In Boston that for years
New England has furnished the money
for the New Haven road and Wall
Street has ruled the property and made
the cream Of the profits. No banker
speaks openly. A. long ~ the elder
Morgan lived they did not dare oppose
his domination. Now they do not ap-
pear In tho open. They are assuming
the role OF interested spectators, watch.
Ing to see what II going to happen to
this crumbling monument Of railroad ~
curitias piled mountain high.
oEcLAREe BANKER MANAGE.
MGNT MUST CEASE.
Louis BNndeis, the nemesis Of New
Haven's policy OF monopoly and AZ.
grandizsment appeared In boston this
morning. come back from the woods to
watch tho battle. This question 10
| broader and greater than the mere
| authorization OF . single bond ISSUE"
he sald 70 the Evening World corre-
spondent. 1T strikes at the very root
Of the evil. II means that banker man.
agement Of the New Haven must cease.
A complete detachment Of the banker
from the corporation II necessary. II
10 outside financial advice that the rail.
road media. when . banker director OF
railroad decides - railroad man
that II shall issue securities md then
sells them to himself. hxing the price
at which they are taken. there 10 grave
danger that the intsrssts Of the railroad
may saffsr-sufRse both thr0vgA the -
sue Of ssouSatiss wnisA ought not 70 Be
issusd, end q ssll1nS then - AhnssH
a Q erseo les favorable - tho com
pany efan It shouA rsestv&
''It 10 not Q question TO-DAY Of the
rate Of dividend on New Haven stooks'
II u Q question Of protsotinS the oonds.
Of which there are millions In the banks
Of New Ensland. Let anything happen
to these bonds and the results would
BE- appalling. Instead of piling up
mallions more OF bonds and dspreciatins
ths ocmpanys credit say that the
hung around the neck OF New Haven
should b sold and the proceeds applied
to the needs OF the railroad itself
Wipe out the dividends entirely for q
time. II r.crsssary. ana apply the saw.
Ing to building up the credit Of the
company instead Of further Weighing
| u down."
sEos COMMISSION NOT TO o.
: LAY BOND issue.
; Oniciais Of the New Haven ars on.
dssvoring TO avoid the revelations Of
the banker management high financing
before the Public Service Commission
The oompany's chisf counsel. Il. q
. Robbins. had . preliminary conference
and disputed the authority Of the Com
. mission to inquire into all the hnancia
operations.
, He beGsed them not to delay author
, isang the sixty seven million bond Issue
. By going Into prolonged invsstigation
1T 10 OF che greatest importance h
the New Haven" he said, that I
should be allowed 10 finance itself an,
: to have authority without delay to ksu,
; these securities, Therefore We reques
4 that thu commIssion rAfraln from rais