The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-05-29
Acknowledgement to BE
Asked Why Dissolution
Wasn't Sought.
INTERSTATE BOARD
AFTER OHIO MERGER
Light Asked on Alleged
s54,OOO.OOO Jump i'm G., II.
& ID. Indebtedness.

WASHINGTON, May 2s.-Two new
moves against important railroad systems
Of the United states came to-day.
The Interstate Commerce Commission
announced that it will undertake an in
auiy into the financial relationship ex-
listing between the Baltimore and Ohio
and the Cincinnati Hamilton and Day
ton Railway.
IN the Senate resolution was intro
duced by Senator Norris OF Nebraska
dsllnG upon the Attorney General to adj
wise the Senate whether or not the New
York Central and Hudson River Rail-
road and Its subsidiaries are In an un-
lawful combination In restraint of trade.
The Norris resolution asks further. II the
Attorney General answers in the affrma-
tive. why he has not proceeded against
this system under the Sherman antitrust
Jaw TO enforce dissolution.
The conditions which the Norris reso-
luton Is aimed at involve the New York
centrars new scheme OF financing its
properties, which contemplates the ANAL
Samstion of the New York Central with
The Lake Shore and other subsidiaries.
The Interstate Commerce Commission re-
Gently Investigated this plan In response
10 a Senate resolution and found that It
seemed TO be necessary to accept the
purposes that the Central officials had in
mind.
The Interstate Commerce Commissions
action In regard 10 the Baltimore and
Ohio IL Of more immediate Importance.
The commission announced that Its in
aulry is to be conducted In connection
with the advanced rate case. Its obvious
purpose therefore Is 10 ascertain whether
the relationship between the Baltimore
and Ohio and the Cincinnati, Hamilton
and Dayton has any bearing upon the
financial needs Of the former road as Set
forth In the advanced rate case.
Hearing Set for Tomorrow.
The hearing IN regard to the Balti-
b. Chairman Harlan. 1t will be based
on charges made to the commission by
Representative Fowler of Illinois. Mr..
Fowler charges that the Baltimore and
Ohio Railroad when 1t took over the
Cincinnati. Hamilton and Dayton became
liable for obligations amounting to
SlOO.Opv,oOU ana that this Is one OF the
reasons why the Baltimore and Ohio now
needs increased revenues to meet Its ex-
penses.
Mr.. Fowler pointed out that "Poor's
Manual In 1896 estimated the value OF
Cincinnati, Hamilton and Dayton's tota
securities at $1,000. 900. with net earnings
FOR the preceding year of $1,000 900. II
1900 the same manual, according tc
Fowler, gave the Cincinnati. Hamilton ant
Dayton securities as $4,000. 900 and tn,
net earnings as 100000.
What | wish to know and what tn,
people want TO know is what became o.
that $4,000, 600" said Mr.. Fowler. WA
u put into permanent improvements o.
vas II used in some other way, and VIII,
sot ii? The indebtedness OF this rallroa,
company was increased s54000,0O0 Will
IL earnings picked up only 100000"
At the commission offices this afternoon
Il was acknowledged that the hearing to
morrow viii be based on the charges o
Representative Fowler, but no statemen
was made as to the extent OF the in
'est!gaton. 1t was said that the com
mission thought 1t desirable to invest
gate the charges in connection with tn
advanced rate case In order that the com
mission might ascertain whether the rela
uonshlp entails a drain on the resource
% the Baltimore and Ohio.
In the testimony taken by the commits
sion In the advanced rate case the Cir
climat, Hamilton and Dayton wa
treated rs 4 separate institution from II
.b",.Hore and Ohio Railroad Company.
The action OF the commission in b.
sAa!ng this investigation is taken hei
70 mean that the final decision in the az
NanceG rate case may not be handt
Gown Cor some little time yet.
The extent OF the investigation will
announced by Chairman Harlan to-mo
row morning
Senator Norris, who introduced Il
resolution in the upper house todd
against the New York Central. is AUTH
Of tie resolution that led to the Ne
Haven Investigation.
= This move by Mr.. Norris, when taxi
u connection with the announcement fro
the Interstate Commerce Commission al
hA still pending New Haven inquiry. h
ssoused the fears OF railroad men
Washington. They are anxious that az
&'lon In and out OF Congress against Z
railroads shall cease and that the ca
Eers have much needed rest. on I
contrary, evidence seems to point to
%Sed agitation, which apparently h