The Barre daily times. (Barre, Vt.) 1897-1959, 1913-04-29
CHOAT FOR
MELLEN NOW
Enters Railroad Hearing in
Behalf of New Haven
President
IN LIVELY TILT
WITH BRANDEIS
Enormous Capital Increases
Brought Out at Yes
terday's Hearing

Boston, April 20.JThe examination OF
David L. Brown, the governments ac-
countant, was continued by Louis d.
Brandeis at the hearing yesterday of the
interstate commerce commission into the
affairs of the New York, New Haven Y
Hartford railroad company.
The witness said that for the year
ending June 80, 1903, the first year in
/ Guided in his examination OF the New
IIaven's books, the gross operating reye-
nues aggregated SAT ,296,o75.
The figures for the year ending June
50, 1912 were $67 ,359,2lS, showing an
increase OF approximately AZ per cent. in
inine years.
| C. +. Choate, jr., who like Mr.. Bran
deis is appearing at the hearings as
"citizens of Massachusetts, suggested
that the figures quoted for 1908 includ-
ed the revenues for the marine lines OF
the company Mr. Brown could not
say positively that the figures did not
include the steamship earnings, but he
understood that the figures represented
steam railroad operations.
The gross operating revenues for the
year ending June 80, 1906, were S52,9S4,
322. The increase from this date to
June 80, 1912, was approximately PIG
per cent. The report of the New Haven
road to the stockholders for 1903 was
introduced and showed that the gross
revenues from rail and steamer lines
were nearly S5200o000 indicating that
the SAL ,298,077 mentioned by the witness
represented steam railway revenue.
The capital stock, funded indebted |
ness, bills payable and premiums received
on capital stock of the New Haven COM
pany totalled about S94000,000 in 1903
and $40 900 in 1912, according to
the witness, an increase in nine years OF |
1916, 100000 or about 400 per cent.
Mr.. Brandeis brought out that the |
increase in the capitalization was about |
100 times as great as the increase in /
the revenue.
At this point Mr.. Choate protested I
that such comparisons and use of figures
We're improper and misleading, because
no account was taken of the increase OF
assets and other elements entering into
the matter. Examiner Ward Prouty
ruled that the comparisons might be
made,
Mr.. Choate continued to take an ae-
tive part through the remainder OF the
session, and ii was learned that previous
TO the opening of yesterdays hearings he
had observed his appearance as counsel
for the New Haven road, He had an
Friday that he appeared as
citizen of Massachusetts.
Further examination of Mr.. Brown re-
suited in the testimony that the figures
Of aggregate capital Indebtedness given
by the New Haven company did not in
,lude such contingent liabilities as guar
lntees on the debentures and other OBJ
legations assumed by the New Haven on
account OF some of it's subsidiaries.
Among the contingent liabilities men
Toned by the witness and not appear
ng in the New Haven eompauy's eap.
.al indebtedness was S2,S00,000 on ac-
cunt of the Boston Railroad Holding ,
company.
The witness testified regarding GER
ain entries on the New Ravens list of
'ssets, which, in his opinion as an ac- /
ountant were improper. He mentioned {
me instance where premiums on the I
ale of stock to the extent OF $4,000, 900
lad been credited to profit and loss in :
tead of premium liability. II this had i
'een credited TO premium ilabllltN, the
7itness said, il would have had the ef-
ect of converting a surplus OF $l2 ,500,-
90 into a deficit of 81 10000
Again Mr.. Choate protested at the line
he examination was taking, saving
he deductions were misleading and
hat the matter was one OF bookkeeping. ,
Mr. Brown testified regarding other
ntries included among the assets which, =
e thought, should have been included i
mong liabilities. Had these items been !,
harged according to Mr.. Browns idea i
( proper accounting they would have
hown S3,6960O0 additional liabilities. :.
The hearing will be resumed to-day. q,