Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1913-07-09
CONDEMN new
HAVEN RAIL
ROAD
INTERSTATE COMMERCE COMMISSION
IN ITS REPORT FINDS FAULT
WITH FINANCIAL OPERATIONS,
CONTROL OF ALLIED Lines AND
Other FEATURES OF ROAD.
COMMISSION SUGGESTS
BETTERMENT PLANS

WashiHgton, d. c., luiy 9.-Finar
go ctas operations of the Sew York, Ne,
y Haven and Hartford ;:;aai-oaa, It's OWE
ership of t'olley lines and control @
allied New England railways, ar,
condemned gn unmeasurnd terms b,
the fntersta ~ Commerce Commission
lit the report of its investigation made
nade public here today The cora
missions coI-tI1sions are
That the outside financial manage
menT has beea 'wasteful' in the Cx
tren,e and that had the New Haven
Icontiued itself 20 actual railroad acti-
Ivltieg Rnder the same conditions that
prevailed in other respects it coulG
have paid s per cent for the fiscal
year 1912 and carried to surplus ac-
counts $l,194,0 instead of showing
a deficit of $930,30O.7
! THAT the New Haven's agreement
with the Boston and Albany is "vio-
lative of the spirit of the statute
against the restraint of competition
and should be cancelled,
That the New EEaven should divest
itself OF its trolley lines, not because
the present ownership is in violation
of law, but such ownership might be
used to prevent the building of COM
peting lines in the future.
That the Boston and Names mer-
ger with the New Haven, IL permitted
tc stand. will result jan ma alpeost ezs-
elusive monopoly of transportation
facilities by railroads in the greater
part of New England.
That passenger train service, with
out consi ierine sarery of operation on
the New Haven, is distinctly better
than any other line entering New
York. and that the Boston and Maine
is equally good Both road, however
are criticized adversely because OF
lack of steel cars.
That the freight service of the Bos-
ton and Maine is much less reliable
than that of either the Pennsylvania
or the Baltimore and ONO. while thaf
of the New Haven is slightly inferior
to the Pennsylvania, but on a par with
the Baltimore and Ohio.
That passenger fares in New Eng
land have been more favorable to the
local travelling public than in any
other portion of the United States.
That "any betterment of railroad
conditions in New England must be.
ui, wifi, tbo occ,rnpoo thof tho Now
Haven management will act not only
but above all within the lot.
-er and the spirit of the law"
No order was made by the commits
sion but in its opinion, the follown:
propositions which have national aIs
1lication to all railroads, lie at the
of adequate railroad regu
atom
Every interstate railroad should
be prohibited from expending money
)r incurrng liabilities or acquiring
property not in the operation of it's
abroad or in the legitimate improve
nent, extension or development OF
hat railroad.
"No interstate railroad should be
permitted to lease or purchase any
,ther railroad nor to acquire the
stocks or securities of any other rail-
Dad nor to guarantee the same, d1-
'ectly or indirectly without the ap-
.roval of the federal government.
mo stocks or bonds should be is
ued by an interstate railroad except
or the purpose sanctioned in the two
preceding paragraphs and none should
C issued without the approval of
he federal government"
The transactions of President Mel
en- in giving his personal notes to his
wn company for stock are discussed :.
t length by Commissioner Prouty.
On transactions in New Haven
took bought with such notes, the re.
ort says, there were profits OF $102,-
90 but the New Haven's books do
OF show to what use the money was
ut. Commissioner Prouty says:
"His statement was that the amount
ad been used in campaign expend-
.ures during the summer and fall OF
904 by direction of his directors and
hat they had subsequently ratified
is act. The September account
hows a payment to Mr.. Mellen of
$4,000 in cash which he passed over
D the Republican national campaign
ommittee 1t shows a second pay
lent to MI Buckland. now the vice
resident of the company of $500
yhich was turned over to the Repub-
can state committee of Rhode ISL
nd.
The investigation disclosed that
uch transactions extended over
considerable period and from time to
lme Mellen was given various large
ums for various purposes, not stated
4 the books of the company. He
laimed that the amounts he re-
eived were for campaign contribu-
and for other expenses includ-
ng O.. item of $32,0O0,O00 spent in
onnection with certain leases of
ock property in New York city.
Commissioner Prouty says the cCm-
any doubts the propffety of this lax