The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-07-15
CALLS The REPORT
BRANDEIS'S MELODY
J. W. II. Grim, Counsel for Mel
len, Declares New Haven In
quiry Was Political.
FACTS DISTORTED, HE ADDS
Lawyer Believes the Directors
Would Welcome Suits for
Restitution Of Losses.

John W. ". Grim counsel for Charles r.
Mellen, yesterday referred to the Inter
state Commerce Commissions report on
the New Haven road as:
An eloquent denunciation Of the man
agement. and the language has q peculiar
melody which suggests Mr.. Brandeis."
Mr.. Grim was of the opinion that the re-
port OF the commission has little legal
weight and n II ever brought up the ques-
ton Of whether or not restitution should
he made by the directors the latter them
selves would welcome the opportunity to
tell the inside history OF all their trans
actions.
The investigation was essentially a DO.
litical one" continued Mr.. Grim. "and Il
began as such in the Senate. II has been
entirely ex parte and no attempt was mads
10 show the facts In their true proportion
1T would take up a great deal Of news
paper space to explain some Of tho criti-
cisms," he said further For instance,
much IL made Of the increase of capitall-
zstion from $4,000 900 IN 1903 TO sA17,-
100000 In 1919. II should be remem-
! hered that the New Haven In 1903 owned
400 miles Of road and leased 400 miles.
II owns 1000 miles to-day
They talk about the purchase OF tho
trolleys In Connecticut They were doing
this ten years before Mr.. Mellen went into
the New Haven. These same trollevs
/
5 per cent in 1871. They are steadily
| increasing In value. The time will come
1 when they Will he the money makers of
the whole system.
II would rather have the trolleys than
the New Haven. The system itself would
have been In tho hands OF receivers this
year II II had not been for the trolleys
! The earnings OF tho road arc eaten up by
! terminal charges.
"Onc Of The great handcaps Of tho New
! Haven Is the difficulty Of securing uni
form legislation from tho various States
/ Without such legislation a road cannot gel
long term loans. II must resort to shor'
term notes. The New Haven has not beer
able to fund its Indebtedness. For in
stance, In the state of Massachusetts Their,
IL law which forbids any railroad I,
issue stock at less than par. The Bostor
! and Maine went below par and IL vii
never be possible to finance the road -
long as the law exists.
THE New Haven has been the prey %
| the politician. 1t has been a most con
venient thing 20 swat and the politician,
have swa;ted II. The Governors. Legis
latures and municipalities of seven State
have all had a hand in II.
| This talk of monopoly IL all non
sense. The New Haven does not enjo.
nearly the monopoly that the Souther,
Pacific and the Pennsylvania Railroad dc
What IL there wrong with n monopoly I
II is properly regulated? All tho road
in the vicinity of New York have agree,
on rates and the service they shall rende
for years. The Interstate Commerce Com
omission knows of this.
The New Haven has had 10 undorg
what the other roads could not stand
After paying dividends and earning 50.
100000 net in 1913 II is not payinI
dividends to-day for two reasons. TIL
first is business depression and the secon,
is political undertaking
"The managers and officers Of the roa,
became demoralized. II was impossible
for them TO he efficient Hundreds of mei
have been engaged in investigating II Il
one way or another for three years. tn
decentralization Of Mr.. Mellen and IN
death Of Mr.. Morgan left II like s,,i
without sea"
Mr.. Grim was asked 10 Mr.. Melle,