New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-07-22
HARD SHEDDING FOR
.CATSKILL ROADS
Superintendent Says New
WOrkman'S Law Will
Force Bankruptcy.
BONDED FOR 100000;
PAY ON ONLY $4,000
Carry $4,000 Passengers a Year,
but Can't Pay the Required
$1,000 Premium.

$1,000 Premium.
Representatives OF the Catskill Noun
tam Railway. the Otis Railway and me
Catskill & Tannersville Railway APP
peared yesterday before the Work
men'S Compensation Commission. /
Madison av.. and urged that these
three roads be excluded from the ID
Grafton OF the compensation insurance
Ia" upon the ground that the earning
OF the companies were insufficient 10
meet the expense of the necessary
premiums.
The officials who preferred tlis en-
traordlnarv request were T. +. Jones.
superintendent, and ". Y. Hawley.
vice-p'esident Of the companies
AT first the commissioners appeared
unable to grasp exactly what Mr.. Jones
vas driving at. but when She nature Of
has request was understood he vas in
formed that no exception could be
made IN favor of the roads he repre-
scented.
"Do YOU mean TO say your companies
cannot comply with the law because
they are not financially sound" asked
Chairman Il. +. Bowling.
81 mean just that" replied Superin-
tendent Jones.
DO YOU realize that by your own
statement you admit that your rail
roads are insolvent?" the chairman
demanded.
well, wouldn't say that the roads
are lnSoiyent,' replied Mr.. Jones. "br
you will readily realize that their
financial condition is not Aourishing
when ! tell you that one of the roads
bonded for 100000 is paying interest
on only $4,000. The roads just barely
earn their operating expenses
Calls Admissions Damaging.
Commissioner Darlington at this
point interrupted with the remark that
the superintendent was making some
damaging admissions regarding the
financial affairs OF his railroads. and
asked whether the speaker was aware
that newspaper reporters were present.
Jones looked rather uncomfortable
He told the commission that the roads
he represented would be forced into
bankruptcy If they were compelled 70
pay the premiums TO-. workmen' : COM
pensation insurance.
"If YOU will let Us keep on as we are
now" he sail. Ye shall be able 70
continue operating and take care Of
all accident cases. If the law is en-
forced it VIII mean the confscatio1
Of our properties
Chairman Bowling wanted to know
how the railroads could take care Of
accident cases" if they were on the
verge of bankruptcy. Mr.. Jones replied
that the roads were safe and that ac-
cidents were rare. He said that since
he became superintendent Of the lines
there had been no accidents, although
fifty thousand passengers were carried
annually by the three roads.
To this Commissioner Bowling re-
joined: "A railroad that carries fifty
thousand passengers annually and can
not afford to pay $1,000 year pre-
MUM. or the amount the state requires
Tor the death OF single person, must
be in sad state. and il is high time
that reorganization was effected
Mr. Jones was then asked whether
the Public Service Commission was &C
quainted with the facts he had re-
vealed. He evaded the question by say
ing that he had the complete financial
report Of the three roads for 1918.
Chairman Bowling inquired whether
nc had the reports for the current
year and the superintendent replied
that they showed the roads TO be in
worse financial condition than in 1913.
Chairman Bowling thereupon instruct
cd Secretary Spencer 10 write 20 the
Public Service Commission al the
earliest opportunity and inquire what
it knew about the three roads in ques-
ton.
New York Central to Test Law.
The only suggestion that could
make" said Chairman Bowling. would
he for the board Of directors 20 raise
the necessary money in some fashion"
Then Mr.. Jones and Vice President
Hswley left.
The petition Of the New York Cen
tral & Hudson River Railroad Company
and It's two subsidiaries. the Merchants
Dispatch Company and the Western
Transit Company, 70 include in their
copies OF agreements clauses that will
enable them TO withdraw their moneys
from the state. If successful in the
suits they expect 10 bring testing the
legality Of the new law, was approved.
The New York Central. the commits
son has been given 70 understand. will
bring suits protesting the payment OF
claims by the commission from the
moneys mat IL mas ALREADY put ASIDE
a security, contendng that the rail
road, being an interstate corporation,
is not amenable TO the state law. but
only TO federal law, which gives it the
right 20 pay its own compensation
Under the agreement the New York
Central Is 10 keep an insurance fund
of $500. 900 for self-insurance under the
law, but IT reserves the right 10 take
any cagc q tho Court NJ Appooie