New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-07-14

power 10 examine not only the books
records. papers and correspondence oil
interstate carriers, but OF subsidiary
companies as well.
THE insurinc of honesty throughout
the management OF the great railroads
of the country is most important ques-
ZION before the people to-day, and only
then, through exposure Of wronGdoinG
and an awakened public conscience
coupled with effective laws, this result
is produced, may railroading be placed
or the high level that it should occupy
The revelations in this record make II
essential for the welfare of the nation
that the reckless and prohigate imam
cicring which has blighted TINS greaiI
railroad system be ended. and untiI
this is fully lole there will be no as
surance that the story OF the New
Haven will not be told again. with the
stockholders Of some other railroad
system as the victims.
Obstacles to Investigation.
I'm the search for truth the commits
sion had 20 Osercome many obstacles
such as the burning Of books, letters
and documents and the obstlnacy OIL
witnesses. who declined TO testify untll
criminal proceedings were begun Ioi
their refusal to answer questions,
the report continues. THE New Haven
system has more than three hundred
subsidiary corporations. IN wen OF
Cntanglirg alliances with each other'
many of which were seemingly planned
created and manipulated By lawyers
expressly retained for the purpose o.
conCoalment or deception.
ain the course Of the investigation
mary instances we're uncovered or VIo-
lation of the laws of different states.
A. these were not directly understood
TO be pertinent TO our inquiry uhuer
the Senate resolution. we did not loI-
low them in their details. As pointing
TO violations of state laws, we nave
turned over the evidence concerning
local occurrences in New York CITY TO
the District Attorney for the proper
district. and the testimony relating 10
irregularities in Massachusetts ana
Rhode Island nave been laid be4ore the
proper authorities of those states. ne
commission mas also furnished the De
rartmcHt OF Justice with comple,e
record Of the testimony.
"The difficulties under which this
railroad system has labored in the past
are lntcEndl anu NHoiis wv w.
mismanagcmert. Its troubles have not
arisen because of regulation by gov
ernmental authority. Its greatest
losses and most costly blunders were
made i'm attempting % clrcumvent gov
ernmen,al regulation and TO extend IT'S
domination beyond the limits fixed by
law
II is pointed out that the capitallza-
,;o,, of .hc Now Haven system was IN
creased from 93.OO0.00 TO 100000
since June 50. 1903. This was exclusive
Of stock premiums, making an increase
Of S324 100000
"Of this increase. says the comm =
sion "approximately Sl20,0OOOO0 was
devoted 10 its railroad property and
was expended for betterments and
equipment. This leaves the sum OF
S2O4 .OOO. 900 which was expended Tor
onerations outside of It's railroad
sphere. Through the expenditure OF
his sum this railroad system has prac--
ticallv monopolized the freight and
passenger business in five Of the states
of the Union. It has acquired
monopoly OF competing steamship lines
and trolley systems in the section
which il serves. The financial opera
lions necessary for these acquisitions
and the losses which they have en-,
tailed have been skilfUlly concealed
by the Juggling Of money and securl-
ties from one subsidiary corporation
TO another