The Bridgeport evening farmer., 1914-05-26

A. The lease.
 o. And the rental was to be paid at | $975, 900 a year in 1907? A. Up to the ultimate of $1.40o.- | oo0, think, which does not begin un- til the first of August, 1914.
 @. Did any bank or bankers di- rect the execution of this lease?
 A. No sir.
 O Why was the lease executed?
 A Because it was considered a de- sirab1e thing to do in the interest of all troileys that were owned in Con- necticut.
 @. Has it been a profitable one oth- er than to the lessor? ]? A. r think it ss profitable lease to- day.
 Q. You think it is? A I think 1t is. @. It has not been so far, has it A. The calculations show that 1t has been a profitable lease. as near as you can operate the operations of the company from the rest of the op- erations of the trolley companies; the best estimate we can make is that it was a profitable lease.
 Q. These books are so. mixed up that it is difflceuIt to determine which are earnings and which are aosing7
 A only looked at the aggregate. was satisfied if the whole thing paid
 Commissioners McChord. MT. Mellen, is it not true that most. if~not all of this trolley line constructed was. on the proceeds Of the sale of bonds and the stock was issued as a bonus for the sale?
 A There may have been some, but . I do not know which ones. But most of them represented capital stock or represented cash value. It was not the case in the Connecticut Railway 6 Electric
 The MontviIle Line
 Q. What about the HfontvfIIe line?
 A. The Montvflle line, have al- ways understood-I do not know-that it was an honestly constructed line. but have no means of knowing
 @. This Connecticut Railway & Lighting Company was one of the comp petitors whose bidding forced you to pay more for the Hartford Street Railway than you otherwise would have paid? because do not know. know that there was competition of the parties who wanted to consolidate the gas and eIectric with the trolleys of Hartford 1aaE NasFa a New Y York drrns have forgotten tue name but r know that 1 wherever we were trying to do any thing trolleywise in the state of Con necticut, ,ewe generally ran up against the ConnecticutA Railway & Lighting people in opposition.
 O. (By MT Follz9 This company was controlled by the United Gas & Improvement Company of Philadel- pfaia.
 A It was There was a large amount of water in this Connecticut Railway 6 Lighting Company. think practically the stock was given away. I N @ You think it was given away
 A. think all the Connecticut Rail Way & Lighting stock was largely .<- garding that have no personal knowledge That is general impr es- sion throughout Connecticut
 Q. Do the present retail payments cover interest on the Connecticut Railway & Lighting Company bonds?
 A What is it
 O. Do the present railway rental 1 payments by the Consolidated Rail- way Company
 A Out Of this s1,4oo.ooo a year rental there is paid interest on bonds, and I think that leaves enough to stocls4four per cent dividend.
 o. So they pay four per cent on this watered stock
 A do not know that I have a 1 right to call it watered stock.
 @. I understood you to say so.
 A. said that was the impression ! that prevailed am not responsible | for that impression
 @. Had that stock ever paid a div idend prior to the lease of the prop erty to the Consolidated Railway l Company?
 has
 @. It never did.I is case of water and wine, is it
 A. have heard that expression i before from MT. Prouty.
 @. Yes it is quotation-
 A. would not want to be respon- |
 A. It is expressive of that particu- lar situation, is it?
 A. I think that perhaps from his standpoint 1t may have been Justified. [ think that lease is a profitable lease to the New Haven road of the Consol-l idated Railway.
 O. The railway properties of this company are now operated by the Connecticut Company. are they?
 Buying High and Selling Low.
 A. Yes, sir, they are.
 O. Have you any knowledge of the profits of this line to the New Haven | Companys
 A. It can only be estimated. It is so merged in the other properties in it's l operation and servtces-they are so mixed with other lines that are oper- ated by other parties that it would be i'm possible to separate it without esti- | mating a number of things Will tell you that the best estimate that l could be made while | was connected | with the property, is that it has paid | it's rentaI-earned its rental for some | time past. would not vouch for | these figures, but those are the figures, | and the rental is what depend upon I for information.
 O. Can you teIEeus why the stocks, l bonds and notes of the Worcester & | Webster Street Railway, and the Web | ster & Dudley Street Railway, which | cost the Consolidated over $1 000, GOO, | were sold to the New England Invest me1t & Security Company for $s37. 45s, involving a loss of over $650 900.
 A. can only tell you that they | were part of the worcester & Con |