New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1923-08-09
new HAVEN TO ASK
FOR CONSOLIDATION
Directors Favor Eventual Merging
OF AnNeW England Lines

New York, Aug. 9.--The reply of
the New Haven railroad company di-
rectors to the report of the joint New
England railroad committee to the
governors of the New England states
will be made within the next week or
ten days, according to Z. G. Buck
land, general counsel for the rail-
road. The reply, which is being drawn
UP, will urge that all New England
roads be consolidated in due time.
The railroad directors met yester-
day. when reports were submitted by
committees who had been studying
different phases of the situation and
general draft of reply was ap-
proved which will be sent out in the
form OF statement to stockholders,
defining the position of the New Hav-
en- road. AS to consolidation the re-
port approves in a general way the
Storrow committees recommendation
as to consolidation rather than merger
with trunk lines, but differs from it
in this respect that whereas the Stor-
row report would leave out of the
consolidation the Boston and Albany,
leased to the New York Central and
Central Vermont, controlled by major
ity stock ownership by the Grand
Trunk, the New Haven directors
would consolidate lin due time all
New England railroads, believing that
such unified control is essential to the
protection of New England industries,
the development of New England
ports and the maintenance of the
4i,l Tn, he
of the Central Vermont it is an Am
erican railroad and subject to the laws
of the United States and its disasso-
citation from the Grand Trunk could
therefore probably be brought about,
In the case of the Boston and Albany,
leased to the New York Central, it is
without doubt within the province OF
the interstate commerce commission
to make such grouping as judgment
dictates under the power granted it
by congress.
The directors will take decided
stand against state control and man
agement of the New Haven road by
the states of Massa chusetts, Rhode
Island and Connecticut and It is I'M
derstood that the report will seek no
rebates of taxes due the states as sug |
gested In the Storrow report, It is |
known that the directors believe that
the railroad is in position to oper-
ate from now on without such finan-
cial help from the states and that
they do not believe that stockholders
or bondholders should be subject to
assessments or in any other way suf-
fer any depreciation on their holdings.
The directors believe that The road
can maintain and increase its credit
As to the statistics furnished by
the Storrow report, which seek to
prove inefficiency in operation of
the New Haven road compared with
that of other New England roads it
is said that the directors had be-
fore them figures compiled by the
operating departments of the New
Haven road which showed that the
storrow committee figures were
wrong It was recently pointed out ,
BY Professor W, J. Cunningham of
Harvard that It was absurd to ap- |
,ly one method alone to determine
operating efficiency and demonstrate
~ one set of figures that one rail !
han another. It is known that the {
igures submitted to the directors {
lave proved to their satisfaction
hat President Pearson and the other {
'ttcers of the New Haven railroad /
lave directed operations in such a
way that they compared favorably
With other roads.
specific detailed reply to all of
he points advanced by the New
England committee in its report will
'e prepared and sent to all stock
FOLDERS of the road. Great interest is
AIKEN in the forthcoming report as IT
3 believed that out of the various
uggestlons advanced both by the
'torrow committee and the railroad
irectors there will eventually evolve
plan that will solve the New Eng
and railroad problem,