New-York tribune., 1918-04-28
|. C. c. Criticises Invest
ments; Order Affects Pas
sengers and Freight
1t Adds Millions
TO Lines Revenues
All New England Carriers,
Except One, Included
in Ruling

WASHINGTON, April 27.-1ncreases
in class freight rates ranging between
S and Is per cent and in passenger
rates to ga cents mile on New Eng
land railroads were allowed to-day by
the Interstate Commerce Commission,
reluctantly to the New York, New
Haven e. Hartford, according to an
nouncement.
The commission ordered that mile
age rates might be increased to. an
average of 23s cents, and authorized
other changes in passenger schedules
to bring in many million dollars more
to the roads. The increases in class
rates were disallowed for the Canadian
Pacific and the Bangor & Aroostook
railroads.
The commission criticised sharply the
New York, New Haven & Hartford for
it's investments in other concerns
within the last twelve years.
"Moncy thrown away" said the COM
wanton recklessness, or foolishly lost
in non-railroad enterprises, is not
money put to public use upon which
the rate payers are bound in law and
in conscience to make a return.
1--WE do not overlook that, under the
present form of corporate management,
the great majority>zf the stockh oldcrs
In the New Haven enterprise were even
more the victims of the mismanaging
directors than were the patrons of the
road. 1t is common knowledge that the
directors of these great corporations
are in fact selected by banking or other
interests in too many instances actu-
ated by motives essentially adverse to
the interests of the stockh olders,
Until this commission or some other
active governmental body with absolute
power permanently controls the issue
OF carrier securities and, within rea-
sonable limitation, the application of
the proceeds thereof, stockholders and
other investors in carrier securities are
certain, from time to time, to be sub
9ected to such perils of mismanagement
and resultant losses as have accrued
to the stockholders of the New Haven.
the Rock Island, the Pere Marquette,
the Cincinnati, Hamilton & Dayton and
others. We say this with reference to
future conditions, not overlooking the
adequate, but temporary, safeguards
now obtaining under Federal control.
The fate Of the New Haven stock
holders is hard one, but we have no
alternative except to hold them chiefly
responsible for losses which in con-
temptation of law they brought upon
themselves through their chosen di-
rectors. We limit our present con-
clusion to finding that under all the
circumstances of the New Haven case
a reasonable return upon the carrier
property Investment shown upon it's
books may be justified"
The New Haven expects to receive
from to-day's decision increased pas
senger revenues of about $4,OO0,O00
and in freight revenues about $685.
900. @D'NO'
The commission criticised the "abuse"
OF the mileage book system in New
England, saying travellers in the past
have obtained mileage too cheaply and
used it in discrimination against ira
vellers on straight cash fares.
The New England roads applications
for higher fares were filed with the
commission last fall and were sup
ported by evidence seeking to show
lines, like all others in the East, par
ticularly for fuel. The New England
lines, like all others in the aEst, par-
ticipated in the recent allowance of
10 per cent higher commodity rates.
but that decision did not affect the
miscellaneous schedules of rates
grouped under classes.