The midland journal., 1916-08-11
BRIDGE COST THEM $500.
Head OF Havre De Grace-Perryviile
Concern Reveals Details OF
Financing.
Financing.


seven men gained control of tn,
IEavre de Grace-Perryville bridg,
over the Susquehanna river and las
year got Z per cent. dividend OF
$5OO,000 from the earnings of thu
bridge, according to testimony o.
Clarence G. Pusey before the Public
Service Commission. Mr.. Pusey was
formerly Mayor of Havre de Grace
formerly United States Assistant
Treasurer at Baltimore and nov
secretary of the Industrial Corpor.
alton.
The commission is taking Evidence
with a view of establishing an eouit.
able toll charge for the use of the
bridge by automobiles and other
vehicles, and the Commissioners
fairly gasped when they heard how
the financing of the bridge had been
accomplished. Mr.. Pusey admitted
that the original $70O was "lost in
the shuttle" and he could give no
account Of what had become of it.
Mr.. Pusey succeeded the, late Gen.
Murray Vandiver as president of the
bridge company. The last Legisla-
ture thought that the charge of 81
for automobiles to cross the bridge
was an excessive charge and put the
toll at SO cents until the Public
Service Commission could determine
rate. The argument so far has
been as to the value of the property,
Charles e. Phelps, chief engineer of
the commission, holding that the re-
production cost of the bridge was
only $409,605. while Francis Lee
Stuart, engineer for the bridge COM
pany, put it at $760,55O.
Tells OF Company's Formation.
That the, Pennsylvania Railroad
after it had abandoned the bridge as
a means of conveying it's trains
across the river and had constructed
a new bridge, spent $4,000 in max
ing it available for vehicle passage
and then turned it over to General
Vandiver and Mr.. Pusey, was. the
testimony of the president.
Next, testified Mr.. Pusey, a COM
pany was formed and Capitalized at
$4,000. Each of the seven fortu-
nate ones put in $1O0 for seven
shares of stock, which had par
value of 500. Then the company
met and transferred to Messrs.
Vandiver and Pusey 493 shares of
the stock for the bridge, which was
duly turned over to the company, and
then Messrs. Vandiver and Pusey,
divided the stock they had received
among their. associates and them
selves.
The capital stock was increased
later to 100000, but just what
division of stock was made was not
brought out.
Peoples Counsel Yellott brought
out the fact in questioning Mr..
Pusey. He was endeavoring to show
that the bridge was really worth only
$4,000, since that was the first
capitalization of it and the real esti-
mte that the owners had placed upon
it when they acquired it. Mr.. Yel
lott also brought out that there was
a net income last year of about $685.
900. after $4,000 had been put aside
for depreciation"
Asked About Salaries.
Telling points were made by the
counsel for the commission when he
questioned Mr.. Pusey concerning the
salary and duties of the officers of
the bridge company. Mr.. Pusey
said he received $4,000 a year as
president, but said it was principally
for the responsibility" that he had
to shoulder. Secretary-T Treasurer
Fahey, it was testified, kept no books
nor had any knowledge Of them and
drew $500 for watching the
bridge and seeing that it was kept
in order and operated properly"
Mr.. Pusey stated that his wife and
son kept the books of the company
in their home and he was somewhat
hazy about certain charges. When
asked about money set aside for
painting and repairing the floor OF
the bridge annually he stated that
the bridge had been painted last in
1909 and a new flooring laid at that
time Appropriations for increase in
payroll of employees of the bridge
company next year and the year fol-
lowing. also were attacked by Mr..
Yellott,
The commission set Thursday,
August II. as the time for the sum-
ming up of both sides and likely will
issue an order establishing the toll
rate the day following.