The Bridgeport evening farmer., 1914-05-26


 A. think we figured more than than that. The dif1culty'in arriving at the price, Governor. is that there were several wheels within wheels; there was the Rhode Island Securities Company, which had stock and bonds; there was the United Traction & Elec- trtc Company which owned the stock and bonds of the separate stDeet rail- way companies; there was Sthe Rhode Island Company which had leased all of the street railway companies, and then there were the street railway companies themselves
 Q. How many-just name them over.
 2 A. There are three or four street railway companies; there was the Prevalent Cable & Tramway Company, the Union Railway Company, the pany, and the Pawtucket Street Railway Company. Those were the foundation, or real owners of the property. Next there was the Rhode Island Company which had lease for 999 years of these companies. Next tric Company which was a holding company that owned all the stocks of these companies. Then there was the Rhode Island Securities Company which owned all the stock Of the Rhode Island Company, and that is-' sued lot of bonds for Improvement and things of that kind. O. Then there was the Provident Securities Company too, was there2
 A. That was the one we had charge of That was not one of the oth-
 e. Just keep on with your story.
 A have finished my story.
 Q. Now the properties were worth at that time about how much
 A We'll, we thought they were go- L-A T-- lLm-a what we paid for them.
 o. The actual property was worth, with the expenditures that had been made, according to your estimate, $5, s31, 900; is that correct3
 A. cannot tell you. would not be able to carry the figures in my
 Q. And you caused to De issued sac.- Ooo.e00 worth of securities on these properties so purchased?
 Between nineteen and twenty 70. That is what you paid for those properties?
 A. We paid this Prevalent securi- ties debentures That was not the way we figured it. governor.
 e, When you went into this deal for the Rhode Island trolleys you knew that the price was such that there was bound to be a deficitg
 A. Yes sir. We looked at it right in the face and did not deceive our selves at all.
 Q. How much of deficit in this purchase resulted2 ticipated- I do not carry the figures in my mind.
 Q. Can you approximate the amount?
 A will tell you how we figured it
 = s.xx,, x,..
 A. think the last year, which was the year ending June 30, I do not think it was over about $300.00
 e. Did you place this proposition before your board of directors2
 A Oh, surely How could issue without the consent of my board ?. It was impossible
 O It was fully discussed with your finance communicable. Morgan. MT Rockefeller and MT. Miller?
 The record will show, but it cam not be possible, if such transaction was carried through. Every security would have been invalid if had undertaken to carry it without my boards con sent.
 s2.ooo, ,ooO soon Lost.
 e. Did MT. Morgan advise it's pur- chase?
 cannot tell whether he did or l. who was present.
 e. Do you recall MT. Rockefeller taking any interest in this particular purchase?
 A do not think so
 e. The loss on this trolley system than $2,00O, 900 ifi four years and five months ?-Is that approximately cor rect.
 A We have had them longer than that. should think there must have been a greater loss.
 O. Do you not think the loss would have been greater?
 A. If the loss is not more than that am surprised did better than I thought.
 Q. That is up to 1912? < A. Yes;9of course. there are nearly two wears additional
 O. Since that. So that adding for the two years, the loss should be now more than S3,0o0. 600?
 A That. would depend on what the loss for the last two years has been. For the year ending June 30 1913, as recall it, there was less than there had been for some time.
 o. The loss averaged, as I under stood you, about s4oo,oO a year?
 A. No; said tf1ree-I think about three.
 o. Three hundred thousand?
 A. think that was 1t.
 Commissioner McChord: Had any of these chartered lines ever paid divi- dend to the New York, New Haven 6 Hartford
 A. Oh, yes; the Fair Haven and Westville was an extremely prosper ous property; the Hartford was an extremely prosperous property, and the Springfield
 e. (By MT. Folk) You are talking about the Connecticut properties. are you
 A. Thosee are Connecticut You are referring to the Rhode Island? Oh, yes The Union Railway Is a very prosperous property, and the Provi-4 4 dence Cable Tramway. I think the only unprofftabIe tramway was the Rhode Island Securities. They were frer1a ,l1sl1x r,x1er.ra "a nit a isze.d