The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-07-24

TRANSPORTATION development in New Eng
land since 1893 stating that no new rah-
roads have been constructed, that nine
new boat lines have been added and that
large trolley mileage has appeared. Some
500 miles have been added to the ten
original systems and AIS to the Canadian
Pacific and the Bangor and Aroostook
and other short lines. Some of the orig
inal boat lines have been consolidated
and some abandoned
Some OF the trolley and boat lines
formed through routes to New York.
the brief continues, "and became keen
competitors OF the New Haven company.
AS a result OF this competition tho
Government alleges that the New Haven
set about acquiring or sitting the COM
peting companies and describes how IL
was done. This movement came In the
latter part Of 1898. In which year the
New Haven acquired control OF nine OF
the ten railroad systems and repeatedly
attempted to buy the tenth.
This control" the brief SAYS. "em.
braced lines which for the year ended
June So 1913. had 6.54i miles OF main
line. with passenger and freight earn
ings of $i9i ,O69,4ii. out of a total OF
Se33 miles Of such line In New England.
with gross passenger and freight earn
ings OF SiSO.3s9.105. OF 1892 miles not
so controlled only All miles, owned by
the Central Vermont Railway Company
controlled by the Grand Trunk Railway
Company of Canada are substantially
competitive with the former company for
Interstate and foreign traffic. The line.
controlled by the New Haven company
, earn about 81 per cent. OF the gross
| freight revenue and about eb per cent. or
| the gross passenger revenue OF all New
| England railroads.
six Lines independent.
.,,-N. 49,. tto,,on ,o,,nopy a,nuirad
stock control, or the largest interest in
! the stock OF the corporations owning
| twenty-five OF the boat lines. Several
others ceased operation and but six lines
remained independent.
THE New Haven company has ahan-
doned some OF the lines acquired by 1t.
| dismantlng some OF the boats SELLING,
some and leasing others on condition that
! they he removed to the Pacific coast for
| operation. Lines have been consolidate
| and boats shifted from one to another,
go that in some instances the identity of
| the boats and property or the original
lines has been destroyed. The New
| Haven company thus controlled 80 per
cent Of the water transportation OF
New England.
The New Haven company has &C
uured control of substantially all trolley
lines IN New England south OF the line
of the Boston and Albany Railroad ant
ives, of Providence, and all lines from
Connecticut into New York city and vi
cinty"
As to the general methods alleged 4
have been pursued by the defendants 4
acquire monopolzation. the Government
bill saws that the physical properties o
competing transportation companies have
been purchased or leased. or control o
them has been secured in other ways "bl
means OF unfair competition and illega
practices and that elusive, complicated
and indirect methods have been resorte'
10 In order TO conceal the real characte
of the transactions to destroy the identit!
OF the lines acquired and render thei
assets and physical properties indis
tinguishable. Corporations OF man
states have been organized or purchase
and used as subsidiaries"
| The bill also says that One OF the pur
poses OF resorting to this complicate
system has been 10 entrench the New
Haven company in its monopolies and
make IL impracticable for the Government
TO apply specific remedies ana restor
original conditions"
How Lines Were Acquired.
The bill then gives in detail. wha
! It asserts to be the steps taken to obtai
control OF the railroad, steamboat an
trolley lines. The railroads are IN
following: The Old Colony Railroa,
|
land Railroad Company. the ConcorC
and Montreal. the Fitchburg Railroad
the Central New England. the Boston an
Maine, the Boston and Albany, the Ru
land, and the Grand Trunk OF Canad
Control OF the old Colony In 1898 gay
the New Haven entrance into Bosto
and later in the same month, since IN
constituted an invasion by the Ne
Haven OF the territory of the Boston ar
Maine, the meeting at the home of
. P Morgan, described previously. wa
! held and an agreement reached.
!, As result OF this agreement tho Ne
: Haven entered into partnership col
!, tract with the New York Central. whi'
- had a ninety-nine year lease OF the Bo
. ton and Albany. for the control al
= operation OF this system.
Considerable attention IL given In q
y bill TO the acquirement OF control OF q
: Boston and Maine by the New Have
9 when these lines began TO come in
. keener competition. In 1907 the Ne
- York Central agreed TO sell to the Ne
10 Haven company all the stock OF &
n Boston and Maine that Il held and
70 attempt to induce its stockholders
l. sell all their stock. Later In that We
s5.252 shares Of Boston and Maine we
IS sold 10 the New England Navigate
H. Company, which was owned by the NJ
Haven company. Other stock was a
! Qulre1 by tnt NdNlGdlicl NoHlhehHy W
* II had lo9,e4s OF tho total issue
r. 2ss596
y, 1T had this stock conveyed TO =
Navigation company" the Governme
of asserts, "for the purpose of evading I
p laws Of Massachusetts prohihting
N railroad company of that state from
re rectly or Indirectly holding stock In a
other corporation. Subsequently II we
X in an attempt still furher TO cono'
In its ownership. through the form 81 81
ing this stock to defendant John
Billiard"
or the famous Billiard deal, which
now being Investigated by a commit
Of three directors Of the New Hav
the bill SAYS that the sale was ms
sham l. was entirely financed ny
New Haven company, and Billiard n
the stock for that company and ~
feet 10 's disposition"
The hill then tells Of the Massaci
setts law which gave birth to the Il
ton Welding Company for the purpose
acquiring Boston and Maine stock,
voting stock. The holding company ste
Is all held by tho New Haven CO
many, inasmuch az II WAS merely
fundamentally 10 enable the New Ha'
to control the BOSTON and Maine VIII
had heretofore been controlled "ontr
To the genera, laws Of the State
The alleged attempt OF the New Ha'
70 buy the Central Vermont Railroad 8
suppres~ extensions of the Grand Tri
, raIiwav system, constituting n compel