The Bridgeport evening farmer. [volume], July 09, 1913, Image 1

About The Bridgeport evening farmer. [volume] (Bridgeport, Conn.) 1866-1917

Image provided by: Connecticut State Library, Hartford, CT

                
DO YOTT
want a furnished room, or a
'? Bat, read The farmer Clas
"t eified Ads. You'll find what
you want.
"""" THE "WTJATIIEIS
Showers tonight and prob
ably tomorrow
BRIDGEPORT, CONN., WEDNESDAY, JULY 9, 1913
PRICE TWO CEXT3
; VOL. 49NO 161
JUDSON REBUKED
IN DECISION OF
: MILITIA CASE
judge Greene Sets
! Aside Gray's $500
r Verdict
Jury Found Contrary to Eviusnce
. in Kiiefi flceleS Suit Aplnst
Gspt. Passman
The 1500 verdict which Horace M.
"Gray of Norwalk, received An the $15,
(XXI suit against Ca.pt. Albert Mossman
or the 6th Co, Coast Artillery, has
been wt aside by Judge Greene of the
SuDr!or court. The decision was
landed down today.
In his memorandum the court takes
occasion to rebuke State's Attorney
StllM Jrrdson. who -was counsel for
Cant MMsnian The court says. "The
defendant's counseh Instead of treat
Ins the plaintiff and his counsel -with
ourteey. abused them , throughout the
trial and arguments, the abuse Includ
ing among other things .repeated sug
gestions that v the plaintiff's attorney
had been previously disciplined by the
u peri or court for misconduct, that the
Plaintiff had not paid ms aeoxs in
cclLesre and the statement that the
plaintiff was a cur. This conduct on
both sides was adapted to create a
prejudice against the defendant as a
member of a military conspiracy to
Injure the plaintiff and to create
ympathy in favor of the plaintiff as
a person." -
Judge Greene stated in speaking of
Horace -Gray, "The plaintiff is a young
roan of good appearance, evident In
telligent and except for an overesti
mate of his own importance, calcu
lated to 'make a good impression on
his hearers. The injustice of the ver
dict rendered seems to the trial judge
so manifest as to clearly denote that
the Jury was influenced by prejudice
jund partiality if not misled by mis
take in the application of legal applications.-
The evidence shows clear
ly -that the plaintiff had an unfortu
nate combination of qualities that his
advancement in rank would make his
company suffer severely. There is no
evidence upon which a ix&y could
reach any other conclusion. The evi
dence shows he was unwilling .to obey
and unfit to command." .J . -
- Gray, who was a member of the 6 th
Co.. claimed Capt. Mossman diseriml
TLated against him and prevented him
irom oeing aovancea. x was anegea
that Capt. Mobsman wrote to his su
perior officers in speaking of Gray,
"He has such an unfortunate person
ality that if he were advanced higher,
She company would suffer grievously."
. Suit was brought for $15,000 and
after a two weeks' trial in this pity,
the Jury awarded Gray $500. State's
Attorney Jndson filed a motion to
have the verdict set aside, claiming it
Was contrary to the evidence.
ULGARIANS .
ANNIHILATED
BY SERVIANS
. Belgrade, July 9 The town of Serres,
febout 45 miles northeast of Salonika,
Wat captured today from the Bulgar
ans by the Greek army, according to
official despatches received here.
' The Greek fleet is reported to he
'bombarding- Kavala. on the Aegean
Fea, now In the hands of the Bulgar
ian a.
-According' to " authoritative private
information the Bulgarian forces, nine
'battalions strong, which invaded Ser
wia at Knlarsevatz, were entirely an
nihilated. They met the Servian forces
and engaged in a desperate battle at
Xentra, the entrance of Zajetsar Pass.
TO PUNTS!! BTTXSARIA
Cologne, Ger, Judy 9 Nobody ac
quainted with conditions in the Bal
fcans can doubt that Europe "will be
wonfnmted, shortly, "with events of the
sumost Importance affecting the poli
tical and military relations of Austria
JTunjrary and Russia, telegraphs the
Sofia correspondent of the ' Cologne
Gasette. The quarrel between Bul
garia and Roumania, the despatch
ays, has entered a new phase and
King Ferdinand of Bulgaria is to be
(punished for not conforming to the
wishes of Russia. ,
BTLGABS FOR PEACE
"Vienna, July 9 The Bulgarian gov
ernment is reported to have sent a
circular to the European powers ei
f ressing its readiness to negotiate , for
peace.
The Bulgarian and Servian comman
ders in chief are stated here to be al
ready negotiating an armistice, as the
Josses of both armies in killed and
.wounded are so immense and it is fear
ed that the epidemic of -cholera which
has broken out among the troops may
tet beyond control.
ITGITTrRS FO CSD HERE.
Martin Brown and Thomas Greene,
each 20 years, of Torrington, Conn.,
were arrested here this morning by
Xe tec Live Sergeant Edward Cronan
tipon ' warrants charging them with
being fugitives from justice at Tor
rington. It is alleged that they re
cently smashed up the town generally
during a fracas there. Greene was
found working as a waiter at the
Iongley restaurant while his com
X nn ion was employed by the Blue
llibborr' Carriage Co. They were tak
stx by officers from, their home town
Put afternoon. . . "
Public Utilities Commission
Will Examine Bridgeport Gas
Light Co. Books In Price Probe
Petitioners Show That
port Pay From 5 Cents to 25 Cents
More Per Thousand Feet Than
Charged in Other Cities
Tax List of Company in Bridgeport, Fairfield and Strat
ford Filed to Show Valuation of $1,888,000 But
Report to Commission Claims Value of More Than
$3,000,000 Commission May Decide to Make Phy
sical Valuation of Property Representatives Mc
Murray and Wilson Head Petitioners.
Brtdareoort is paying $1 per thou
sand cubic feet for gas, which Is from
five cents' to twenty-live cents more
than the price paid in fourteen other
cities in Connecticut and Massaeira-
KAttK. "Hartford sets a ninety cent
rate,' Cambridge, . Chart est own, and
Springfield giet an 85 cent rate, Iyim,
a city about the size of Bridegport
gets a 75 cent rate. New Haven gets
a 95 cent rate, Kail River and Wort
renter get an eighty cent rate, ana
the little town of Newton, gets a nine
ty cent rate.
These facts were submitted! to the
Public - -Utilities Commission,- this
morninir. in the bearing' In the Com
mon Council Chamber, City Hall, up
on the petition of Representatives
John II. McMurray and Lynn W. Wil
son and others for a reduction in the
price of gas furnished !y the Bridge
port Gas Iaght Company.'
Among' the facts presented, was the
following table:
Table showing maximum net price
of gas per thousand cubic feet in
Bridgeport and other . cities, with
population supplied with gas.
Population Price
Place. Supplied, per M.
Bridgeport .;. 110,000 $1.00
Hartford .......... 118,500 ,0
New Haven 165,189 .95
Boston .-....... 706,301 .'.80
Cambridge ........ 165,924 ' .85
Charlestown, . 67,595.-,'." 'v. .85
East Boston ' '. ;iU"- BOJ fO - .85
FaB River . . .-. ., Ili295, .SO
Haverhill 44,115 .90
Lawrence .......... 110,130 . .90
Ijynn 112,100 , ,75
New Bedford ...... 96,652 .80
Newton .......... ... S9.806 j .90
Springfield .-. 107,583 ' .85
Worcester . 145,986 .80
Col.: McMurray was represented by
Attorney John J. Cullinan of the firm
of Cullinan & Cullinan.' The Gas Co.
was represented by Attorney David H.
Day.
The proceedings Were conducted with
utmost good nature, and were far from
lively, the evidence .laid in consisting
mainly or extracts irom, ine wuciai
reports of Connecticut Gae companies
to the Commission, and the reports
of Gas companies to the Massachu
setts Commission.
The hearing was adjourned, to the
call of the commission, pending' an, ex
axnination of the books of the com
pany by the commission accountant,
with the ' understanding that if - nec
essary facts cannot be obtained in this
way. the commissions may make a
physical valuation of the property.
This ruling was made by Richard
T. Hicrtrlns. chairman of the commis
sion, and was concurred in toy Theo
dore B. Ford and John H. Hale, the
other members of the commtesion.
The petitioners also offered through
Clerk "William H. Haviland, the file
in the case of Knickerbocker Trust
Company vs. Citizens Gas Company.
Mr. Haviland said that the file con
tained a complaint, with map annex
ed, showing the mains owned by the
gas company in 1901. An appraisal
of the court showing that the value
of the company's property in 1901 was
$400,000, and that said property had
been sold under the hammer for $85,
000. : .
When the hearing opened at '1Q
o'clock Mr. McMurray addressed the
commission, saying tnat in tnef opinion
of the petitioners gas ought to be sold
in Bridgeport for not to exceed 80
cents per thousand cubic feet.
Mr. Wilson offered the gas com
pany reports of the Connecticut and
the Massachusetts Commission.
The introduction of the latter- re
port was objected to by Mr. Day, but
was admitted upon Mr. Wilson s
agreement to show the use to be
made of It
Mr. Wilson then consumed and hour
and a half reading from the reports.
The more important facts adduced
were 'that for the year ending June
30, 1912, the company sold to 22,273
customers, about' 500,000,000 cubic
feet of gas for which it received $449,
000.04. That it cost to make, distri
bute and sell this gas $283,152.97, and
that the balance to profits was $215,
894. That the cost of making the case
in the holder was "a little more than
27 cents per thousand cubic feet, and
that the total cost after distribution
and overhead charged were added was
a little less than fifty-seven cents,
and the margin for profits a little
more than forty-three cents.
Comparative figures were offered to
show that Bridgeport - is paying1 from
10 to 25 cents mow per thousand feet
than other cities In neighboring ter
ritory, in which the cost of making
the gas was as much and sometimes
more,- than the cost in Bridgeport.
Comparisons, were also made for the
purpose of showing that the company
exaggerates the amount of capital us
ed in its business. The figures indi
cated that the Bridgeport company
claims to employ $6.59 of invested
capital to make a thousand cubic feet
of gas, while New Haven employs only
V while some of -the other cities'
Consumers in Bridge
employ no more than $3 for this purpose-Mr.
Dayobjected to the introduction
of the tax ' lists, . unless the purpose
was disclosed.. -
Mr. Wilson replied: "We regard this
tax list as representing very closely
the actual value of the property em
ployed in making this gas. The head
of this ' company 1 is an advocate of
tax equalization, he has led' a cam
paign for fair : taxation, and there is
every reason to assume that the figures
stated in these lists are the fair and
actual value of this property, and we
offer them to show that value."
The lists showed a value of $1,888,000
which is about $1,300,000 'less than the
value reported to the public utilities
commission.
It appeared that subpoenas had been
issued to George W. Roberts, treasur
er of the company, and for Secretary
R. I. Munson, calling for the minute
books of the directors and stockhold
ers of the year 1961, for all maps and
papers connected with the purchase of
the Citizens Gas Co., for all books of
account showing the construction, and
equipment accounts of the .company
and for" figures showing the cost, sell
ing price and revenue from the sale
of gas' in 1913. ....
Mr. Day explained thai these sub
poenas had not been served -until last
night, and that . there had not been
time to assemble jthe. necessary infor
mation, v---- ---- - -
A discussion then ' ensuea ' as to th
best method of ascertaining the value
of the property. The petitioners sug
gested -that the commission ought to
make a - valuation of the property!.
- - Mr. Day said that the company
would be willing to . agree if there
might be ah agreement as to the ex
perts to be employed. ' '
Mr., Higgins, after consulting , with
the other members of the commission;
said that the commission would not
feel Justified in. inflicting the cost of
a physical valuation on the state, un
til it had been shown that other meth
ods were not sufficient. - -
The commission then decided that
it would send its accountant to . . exa
mine i the company's books and other
property. ' An understanding w
reached that the company . will pro
duce at the next hearing maps of its
mains, showing size and age as far as
possible, its . costs, and expenses of
making and selling gas in 1913, an in
ventory of its property, and the papers
and minutes necessary to show the
facts , connected with the acquisition
of the Citizens' Gas. company.
The hearing was then adjourned
Chairman Higgins said that he hoped
to be able to - call the next hearing
this month, hut if 1 the accountant's
work is not complete, there must be a
delay until September.
TRACi" ON IMPERATOR
Assistant Fred W. Tracy of the su
perior court has written to Clerk Wil
Bam T. Haviland telling of his safe
arrivaj at Plymouth, Imgland, on the
steamship Imperator. Mr. and Mrs.
iTacy are on tneir way to Switzer
land, where they will spend a month
Mr. -.Tracy is very encnuslastic in
praise of the Imperator, the largest
vessel in the woria.
James Bradsfcaw' tou
jour Standard Staff
James Bradshaw, one of the best
known newspapermen in Connecticut,
joins the circulation force of the
Bridgeport Standard on Monday. Mr.
Bradshaw- was connected with the cir
culation department of Metropolitan
dailies for 11 years and for a time
was "connected with the circulation
department of the Old Morning Un
ion. More recently Mr. Bradshaw has
been a circulation boomer for the
Bridgeport Post. Mr. Bradshaw has a
reputation as a hustler and the Stan
dard is to be . congratulated on hav
ing secured his? services.
CITY COURT CASES
After seven continuances extending
from the date of a raid on his place
April 7, Thomas Rock appeared in the
City court this morning to plead guil
ty to a charge of running a house of
ill-repute on State street. Extenuat
ing' circumstances were pleaded by his
Attorney Fred A. Bartlett, who called
attention to his loss of license, long
lease upon premises which he will
keep cloeed, etc., and a fine of $25 fol
lowed. Bonds of several frequenters
were forfeited.
Arthur Poland, found guilty of us
ing abusive language towards Fred
Greenwood, living at 269 State street
was sentenced to 30 days in Jail and
ordered, to pay a fine of $1 and costs
in addition.
Under bonds of $1,000 Paul Parveli-
nich, of 1126 Railroad avenue, was held
for the Superior court, for-the theft of
$50 from a room-mate, . -
FINE FUNERAL
FOR WORLD'S
REST POODLE
Owner of Castle Ron-
aid Inconsolable at
Loss of Canine
Japanese Toy Dog, Blue Ribbon
Winner, Burled Like
(By Our Special Correspondent.)
Newtown, 'July 9 Miss Elizabeth
Blake, owner of the famous Castle
Ronald in this town, is -mourning the
loss . of her Japanese ' toy poodle for
which she recently refufeed $6,000. It
is not the monetary loss which affects
Miss Blake, however. The poodle
which was without a peer in its class
in the world had been Miss Blake's
Constant companion for a number of
rears and she was greatly attached to
it.
Miss- Blake was secretary for the
late Pierre- TjOlliard Ronald who built
the Cestle Ronald in Newtown. Vhen
he died Miss Blake was one of his
heirs and among other bequests she
received the Newtown property.
No matter where she ' went Miss
ciaKe always iook ner pec poooie wuu
ner. orten carrying - me iitue ammat
was very fond of candy and Miss
Blake bought the most expensive cho-
colates.for it. She also kept a maid
whose sole duty it was to attend, to
the wants of the poodle as she would
attend to the wants of a child.
Last year the poodle was exhibited
at the Waldorf-Astoria toy dog show
and carried off first prize. In fact
the judges declared that the equal
of the poodle did not exist in the r of this city where he endeared him
world and following this show Miss self to his playmates and future com-
Blake was deluged with offers for
the dog Including the one as stated or
$6,000. Miss Blake's love for her pet
far exceeded any money consitJera- engaged with his father in the crock-
tion, however, and to all proposals to ery business on Broad street,
sell the poodle she turned a deaf Later he became actively interested
ear. - . , "In politics being an ardent and almost
Friday the dog was taken ill and radical Democrat. He was appointed
Mtes Blake at once called a veterin- fire Commissioner under the admln-
ary surgeon to attend it. Later an- istration of Mayor Denis Mulvihill and
other veterinary was, called and then served as Democratic Town Chairman.
Miss Blake's own physician. ; Their After administration changes he left
efforts -to save the dog's life were .in tiii3 city, to make Chicago- his home,
vain and the poodle died next day. anj there wals employed in an execu-
Miss Blake had the poodle's body erfl- tive capacity by the Sperry & Hutch-
balmed and had it buried in a grave inson company. He was a member of
at the foot of a big tree on a portion tne local lodge of Elks. :
of the grounds where the dog ran Besides his former wife, Elizabeth
each day for an airing. p Fenner, at . present living in
It is said Mies Blake intends to have Bridgeport, he is survived by : two
a 'suitable headstone erected on the brothers, State Senator Lestor O: Peck
dog's grave. In the meantime , she is
inconsolable over the loss of her pet
GUNNERY TROPHY FOB
BATTLESHIP IDAHO
Washington,' July 9 The battleship
Idaho attained the highest final merit
in gunnery of the 21 vessels compet
ing in the battleship class during the
past year and has been awarded the
gunnery trophy. In recognition of
this - the Navy Department has ad
dresed a congratulatory letter to Cap
tain W. L. '. Howard, commanding of
ficer of the Idaho.
WOMEN OUTNUMBER
KI III lir&r
" " " " ' W VBSM I
Chicago, July 9 The female major-
of the population of Evanston, the I
norm snore suDuro, continues to grow, piace jn the rear of bureau heaaquar
according to the school census collect- I tens, while the students will be in that
ed yesterday. The figures show that I section of the camp which was oc-
the women outnumber the men toy 1
484 in a population of 27,487.
There was a total increased popula-
tion in MB of 741 and a decrease ln
the male population of 1S9.
According to tne statistics lo.sxi orim
tne women are or voting age, wane
there, are only 7,233 men eligible to I
vote.
WORK OF COMPLETING
PEARl HARBOR DOCK
UP JO SEC. DANIELS
. Washington, July 9 Secretary Dan
iels today will decide whether the
great naval dock at Pearl Harbor,
Hawaii,, shall be completed according
to the original plans or work on It be
abandoned. Much of the secretarye
decteion iwill depend on, the recommen
dation of Rear Admiral Homer F.
Stanford, head of the bureau of Rec-
ra-rts nnji "flocks who has been i rives- I
tifratlnr the recent accident to the
workmen at the bottom of the great
work which collapsed when the wa- tneemoossea letter paper ana enve
ter was withdrawn. lopes of the members are to be taken
m tiio wort atVwi narbnr m away. Hereafter the stationery that
undertaken it was expected that the
dnolcH wnnld eventually afford a ren-
v,t- tho flPt that .would be
virtually impregnable. "The desire of
tho nw narmmi t have thn work
completed in time for the opening of
the Panama Canal, if the project is
feasible, accounts for the department's
desire for an early termination of the
matter. .
PORTFOLIO CHANGE.
Mexico City, July 9 The portfolio of
foreign affairs has been offered by
provisional President Huerta to
erico Gamboa, , to fill the place of
Francesco De Barra, who resigned yes
terday. Senor Gamboa was sub-sec
retary for foreign affairs during the
periods of office as foreign minister
of the late Ignacio Mariscal and En
rique o Creel; under the administra
tion of Porforio Diaz. It was generally
expected that he would accept.
ARTHUR T. PECK
IS DEAD IN HIS
CHICAGO HOME
Former Democratic Town
Chairman of Bridgeport
.Succumbs to Pneumonia
Was Fire Commissioner Un
der Mulvihill Administra
tion Lately In Trading
Stamp Business.
Arthur T. Peck, former Democratic
Town Chairman of this city, promin
1 ent business man, widely known
i mrougnout tnis city, passed away
i veeteriav ln nhinaen. hl wt-hon,.
after a Bhort "Iness from pneumonia.
ine news of this death came with
I startling suddenness as it seemed but
I a short while ago that his activities
in the business, political and social life
I of this city were most 'familiar.
1 Arthur Peck was born in the South
I End of the city, the son of D. C. and
I Mary T. Peck. His education was Se-
j cured in the common and high schools
panions. He lived at 472 State street
an(j almost up to the time of the
death of his -father and mother was
of Redding Ridge, Conn., and Di Carl-
ton Peck, of New Rochelle.
His, bodv will be shipped toNthis city
whflre appropriate funeral services will
bs held. . , '.
CAMP OF INSTRUCTION. FOR
STUDENTS AT GETTYSBURG
I nt-rolyurir. July 9 Coming from as
fa,r eou-th as Georgia and from, the
north west as far as Wisconsin, 114
students representing forty colleges
and universities, began -life in the
camp of instruction. '
They will undergo a course in mili
tary training to continue for six weeks
under the direction of officers of th
regular army. Major McRae, of the
I the camp.
. . .
j ne aetacnmenis oi regunu-a ich
that purpose and have been removed
,., the more distant parts of the
D jg veterans' camp of last week to a
cuuied by the newspaper ' men.
jhiii military discipline will be main-
tained. There will be drills and man-
euvers every morning, terminating
with a lecture period on the war
RECEIVER ASKED
Louisville, July 9 Appointment of a
receiver for the Kentucky Refining
Co., a $600,000 corporation located here,
is asked in a petition filed last night
in the United States District court
here. Insolvency, mismanagement, the
withholding of dividends and specula-
tlons with the company's earnings are
alleged.
STATIONERY ECONOMY
PLANNE0F0R CONGRESS
Washington, July 9 Jeffersonian
simplicity is to be introduced into
Congress at the coming session and
bas constrained the letters and notes
of members is to be replaced by less
costly paper. This announcement was
today by the joint committee
printing, which discovered that
more than eleven million embossed let-
Ler nMOB auu envelopes nave oeen us
ed by members each year.
Under the reform it is estimated a
saving of $3,000 a year will' be made.
HAD OLD MOTOR MCENSE
Angostino Sincyvitz, of Pembroke
street, while riding a motorcycle on
Fed-instate street Saturday morning which
he had just purchased from a local
concern, was found' by Patrolman
Hoffman of the motorcycle squad to
have a last year's license. His ma
chine was returned to the firm which
it had been purchased under a rental
contract and the rider was warned
not to ride - again until .he . Jiad . ob-
i ' lined this year's license.
Interstate Probe Finding Lays Respon '
sibility for Present Conditions
to Interests Outside of Ac
tual Railroading .
SAFETY NOT REGARDED IN TRAif SERVICE
Passenger Fares More Favorable to Public Than In Any
Other Portion of United States Betterment Must
Come From Railroad's Observance of the Letter and;
the Spirit of the Law Government Supervision of
Mergers and Leases Is Necessary Killing of Compe- ;
tition by Absorption of Trolleys Is Menace and Hew!
Haven Should Divest Itself of Present Trolley Hold-,
.-ings Eight Per Cent. Dividend Was Possible "With1
Big Surplus Had There Been No High Finance and
No Activities Other Than Railroading.
Washington, July 9. Financial op
erations of the New Tork, New Haven
& Hartford Railroad, its ownership of
trolley lines and control of allied New
England railways, are condemned in
unmeasured terms by the Interstate
Commerce Commission in the report
of its investigation made public here
to-day. The Commission's conclu
sions arer -
- That the "outside" financial man
agement has been "wasteful in the ex
treme," and that had the New Ha
ven confined itself to actual railroad
activities under the same conditions
that prevailed in , other respects "it
cor Id have -paid a dividend of 8 per
cent, for the fiscal year' 1912" and car
ried to surplus account $1,794000 in
stead of showing a deflait of $930,000.1
That the New Haven's agreement
with the Boston & Albany is "viola
tive of the spirit of the statute
against the 'restraint of competition
and should be cancelled." "In. our
opinion," says the Commission, "this
line, should tje kept entirely free irom
New1 Haven control.
Tfcat the New Haven should divest
itself of its trolley lines, not because
the present ownership is in violation
of law but because such ownership
might be used to prevent the building
of competing lines in the future.
That the Boston & Maine's merger
with the New Haven, if permitted to
stand will result in "an almost exclu
sive monopoly of transportation facil
ities by railroads ln the greater part
of New England."
That passenger train service, with
out considering safety of operation,
on the New Haven, la distinctly better
than any other" line . entering New
York, and that of the Boston & Maine
equally as good. Both roads, however,
are criticised -adversely for lack of
steel cars.
That the freight service of the Bos-
ton & Maine "is much , less reliable
than that of either the Pennsylvania
or the Baltimore & Ohio, while that of
the New Haven is slightly inferior to
the Pennsylvania but about on a par
with the Baltimore & Ohio."
That passenger fares in New Eng
land, have been more favorable to the
local traveling public than in any oth
er portion of the United Stages.
That "any betterment of railroad
conditions In New England must be
gin with the assurance that the New
Haven management will act not only
prudently, but, above all, within the
letter and the spirit of the law."
No order was made by the Commis
sion, but in its opinion, the following
propositions which have national ap
plication to all railroads, He ait the
foundation of adequate railroad reg.
ulation:
"Every interestate railroad should
be prohibited from expending money
or incurring liabilities or acquiring
property not; in the operation of its
ralroad or in the" legitimate improve
menit, extension or. development, of
that railroad. .
"No Interstate railroad should be
permitted to lease or purchase any
other railroad, nor to acquire the
stocks or securities of any other rail
roads, nor to guarantee the same, di
rectly or indirectly, without the ap
proval of the Federal Government.
'No. stocks or bonds should be is
sued by an . interstate railroad ex
cept for the purposes sanctioned In
the two preceding paragraphs, and
none should be issued without the ap
proval of the Federal Government."
"Commissioners Clements and Mar
ble submitted a concurring opinion in
which they "agree heartily with the
report." But make their position clear
as to some of the issues mention
ed. .
Concerning the merger of the New
Haven and the Boston and Maine,
they assert that "this is a phase of
the subject that should be left to the
congress, just as the issues under the
anti-trust law have been left to the
courts. If it were proper to be con
sidered here, however, we would erive
weight to the suggestion that the mer
ger has so overloaded the executive
heads of the entire aggregation as
to impair not only correct and eco- j
nomical financial administration, but
alnrv ffifieTcv nrd- (afptv nf nnra. 1
tion. The Boston & Maine and the I
New Haven are shown by the report J
to be separable organizations. They 1
are not one system, but two systems j
under one management' Therefore, :
closer supervision, ' with correspond- ;
ing gains in efficiency and ' safety,
migjht be expected from a dissolution :
of the merger." Non competition be- ;
tween carriers Is unimportant. More
over, any suppression of competition
involves larger issues, which must be
discussed by those who are charged
with the duty of legisltaion.
The proposed continuation of the in-
quiry into the matter of increases in
rates ought not to be held in ad
vance of the posting of such rates for
the. Information of the shippers who
roufit pay them. The report strongljr
SLgests that increased net income for,
the Boston & Maine should be secur
ed by a reform in expenditures rath
er than by , an 'increase of rates."
The inquiry resulting in to-day's re-,
port was begun about a year ago by ,
the Commission upon its own, Initia- j
tive, in consequence of numerous and .
persistent complaints of the railroad
rates, regulations and service in Newt
England. The . carriers particularly
investigated were the New Tork, New !
Haven, and Hartford; the Boston and )
Maine; and. the Maine Central, i
iMlontns were uevutcu tu a,ih 1 1 1 ii . i ' : i :
of books and accounts and 37 days
were devoted to public hearings. In
the course of which more than 6,00 0 I
pages of testimony were taken.
The report is divided under four ;
general heads, "Service," "Rates," '
"Finances" and "The Remedy." Com-
missioner Prouty, who has devoted j
much of his time during the last year
to the inquiry, discusses exhaustively
each phase. The report 'aggregates .
nearly 30,000 words, or approximate-
ly 2 5 columns in the average nnews-'
paper. ' j
In an exhaustive discussion of the j
financial affairs of the New Haven J
and the Boston & Alaine, Commission- !
er Prouty indicates clearly that the j
investigation was "not into the sol-1
vency or insolvency of the New Haven !
Compay," but rather into the charac- i
ter of Its financial operations. ;
It is shown by the report that In
1903, the total capitalization of thai
New Haven was $93,000,000. and Its
operated mileaee, 2,040 miles. In I
1912, Its capitalization was $417,000,-
000, an increase of $324,000,000;
while Its operated mileage was in
creased only 50 miles. In this pe
riod of nine years, the New Haven
Co., acquired actual ownership of
about 800 miles of road which It pre
viously had operated, expending ap
proximately $40,000,000 In obtaining
the additional mileage. It expended'
during the nine years $96,000,000 fori
betterments and equipment, making aj
total of $136,000,000 devoted to its!
railroad property.
"This would . leave,", the report
points out, "the sum of $204,000,000
which in nine years had been expend-j
ed in operations outside its railroad
sphere." . To the methods of invent- I
Ing that sum, the report devotes elab- j
orate attention. Various transactions :
are taken up, one by one, and analys- !
ed. !
In its acquisition of the Rhode Isl- '
and trolley lines, the methods pursued
Commissioner Prouty sugsest3, "af- ;
ford an instructive object lesson in i
the realm of what is sometimes term- ;
ed 'high finance'." After passirur :
through the hands of two or three cor. ,
porations, the trolley lines were ac-
quired by the New Haven at "inflat- ;
ed" prices.
"Representatives of the New Haven '
Co." the report says, "Insisted that j
this company had not watered thej
stock of the Rhode Island Co., and j
this. Strictly speaking, is true. The'
Improvement 'Co.; turned ' In the wa- i
ter and the New Haven Co., converted !
that water into wine. In whatever i
aspect the transaction is viewed, the, j
New Haven gave'$13,500,000 for noth- j
ing." It was shown that the trolleys !
cost the New Haven to -date about '
$24,000,000 and have been valued at ,'
something more than one-quarter of i
that amount.
'We are not concerned," says the
report, "with the amount lost, but ;
rather with the character of the tran- '
(Continued on Page 10.)
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