Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1913-07-09
Outside FinanCiering is
Called WastefuI in the
Extreme.
IS DEFiCITOF $93O,OOO
Commerce Commission Holds
ROAD Should 0iveSt Itself
Of Trolley Lines, Etc.

Washington. y. C., July 9.--Finan-
oia! operations of the New York New
Haven & Hartford railroad, It's owner
ship Of trolley lines and control OF
allied New Eng and railways, are con
demned in measured terms. by the in
terstate commerce commission in 4
report of its investigation made public
here today. Among the commissions
the conclusions are:
That outside" financial manage
ment has been "wasteful in the ex
treme; that had the New Haven con
fined itself TO railroad activities under
the same conditions that prevailed in
other respects II could have paid a
dividend Of eight per cent for the fiscal
year OF 1912, and carried q surplus &C
count Of $l.794.O0O instead Of showing
deficit Of S93O,OOO; that the New
Haven's agreement with the Boston
& Albany is "violative Of the spirit OF
the statute against restraint of com
petition and should be cancelled"
In our opinion" says the commis- I
sion, this line should be kept en-
tirely free from New Haven control.
SHOULD DROP TROLLEY LINES.
That the New Haven should divest
Itself Of its trolley lines, not because
the present ownership is in violation
Of the Sherman law, but because such
ownership might be used TO prevent
The building Of competing ines in fu-
ture. That The Boston e. Names
merger with the New Haven If per.
mitted to stand. will result n-aH--'ef-
most exclusive monopoly of transpor-
iauon facilities by railroads in the
greater part Of New England. That
passenger train service, without con-
sidering safety OF operation on the
New Haven, is distinctly better than
any other line entering New York. and
that Of the Boston & Maine is equally
as good. Both roads however. are
adversely criticized for lack of steel
cars. Tha; passenge- fares in New
England could have been more favor.
able 70 the local travelling public than
in any other portion Of the United
States
FREIGHT SERVICE CRITICISED.
Freigh. service Of the Boston d
Maine is held much less reliable
than that Of either the PENNSYLVANIA
or Baltimore and Ohio. while the Me-.
Haven is slightly inferior 10 the Penn
sylyania. but abou; on a par with the
Baltimore & Ohio"
That any betterment Of railroad
conditions in New England must be-
no hot
Haven management will act not only
prudently, but above all. within the
letter and spirit of the law"
No order has been made by the com
mission, but in its opinion. the follow
ing propositions. which have a ma.
uonal application to all railroads. lie
al the foundation Of railroad regula-
ticn.
Every interstate railroad should be
prohibited from expending money or
incurrinE liabilities or acquiring prop
erty not in operation OF lis railroad or
in legitimate improvement. extension,
or development Of that railroad.
FEDERAL APPROPAL FIRST.
No interstate railroad should be
permitted TO lease or purchase any
other railroad. nor TO acquire stocks
or securities OF any other railroads,
nor 20 guarantee the same directly or
indirectly withou. approval Of the fed.
eral government"
Commissioners Clements and Mar.
bic submitted concurring opinion. in
which they agree heartily with the
report" bu: make their position clear
rs 70 some Issues mentioned concern.
ing The merger OF the New Haven and
Boston * Maine They assert that
"this is a subject that should be left
10 congress just as issues under the
antitrust law have been left 10 the
courts. IL * were proper % be consid
cred here. however, we would give
weight 70 the suggestion that the mer
Ter is so overloaded with executive
boards as to impair not only a correct
and economical financial administra
lion, but also efficiency and safety OF
operation"
The inquiry was begun about a year
ago by the commission upon its owl
initiative in consequence Of persistent
complaints as 20 railroad rates, regu
+aApAS anu fiN4NS III NV III 4S4d4-u
More than G.09O pages Of testimony
were taken. The report aggregate.
$4,000 words
BIG CAPITAL JUMr.
It is shown by the report that ir
903 the total capitalization Of tx
New Haven was SsS.0O0.OO and E4<op
Grated a mileage Of 2,040. In l212 IN
, capitalization was s417.0OO.OCA, an in
crease of $624, 100000. whiLe s operated