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THE FARMER: JULY 9, 1913 COMMISSIONERS SAY WASTE IS RESPONSIBLE FOR DROP IN NEW HAVEN'S DIVIDENDS CContinued from Paw 1) Action. The 'Inevitable" query is: "What w.i the motive behind this transac tion and -who made the profit? That Question, in the very nature of such transactions, never can be satisfactor ily answered." The New York. Westchester & Bos ton Railway, the evidence disclosed, a four-track electric road extending from White Plains. N. X., to a ter minus at Harlem River, a distance of 2i miles, was built and is owned by -he New Haven. When It was open ed for business in 1912 it had cost the New Haven about J34.000.000, $12, 000,000 in excess of the value of the property on the New Haven's own showing. "Again the question arises" suggests Commissioner Prouty, " 'What has be come of this $12,000,000?" So far as the records go this money has vanish ed into thin air." The property is expected in time to earn its fixed charges and perhaps be profitable. The report points out. that "ail this in no respect alters the qual ity of -the transactions. In any as pect of the matter, the" patrons of those lines are required to pay upon an investment which never has been made, annd thereby subjected to a perpetual unjust exaction." The acquisition by the New Haven of trolley lines in Massachusetts is reviewed at length.. Particular ref erence is made, to the operations of J. L, Billard in connection with the purchase by the New Haven of Bos ton & Maine stock. The conclusion of the- report is that the New Haven Co., gave away to Billard and his as sociates about $3,000,000 of the prop erty of the New Haven. "These transactions," says the re port, "are probably extreme, but by no means solitary. The other outside ventures of the New Haven Co., have been almost uniformly prosecuted -at a loss. This is true of its trolley ac quisitions In Connecticut and Massa chusetts, as well as Rhode Island and New Tork; It Is true of its -purchase ' of railroad stocks and steamship lines. Mr. Mellen entered into an elaborate defense of his management of this property, and he- was able to point to but a. single instance in which, up to the present time, the venture had been profitable. He had purchased the Central Railroad of New Eng. land, and the profit upon that trans action had been a handsome one." The transactions -f President Mel len In giving his personal notes to his own company for stock are discussed at length by Commissioner Prouty. On transactions in New Haven stock, bought with such notes, the re port says, there were profits of $102. 00 but the New Haven'e books do not show to what use the money had been put. His statement was that the amount had been used In campaign expendi tures during the summer and fall of 1904. that this had been done by di rection of his directors, and that they had subsequently ratified his act. These campaign contributions call for no comment frqm us. The act of the New Haven was not peculiar to that ' company at that time. What may be open to criticism Is the lax way in which this matter, was handled be tween an officer of this company and Its directors. The special account shows, a payment to Mr. Mellen of- $50,000 in cash, which he passed over to the Republican National Campaign Committee. It shows a second pay ment to Mr. Buckiand. now vice-pres-Idet of the company, of $6,500 which was turned over to the Repub lican State Committee of Rhode Isl and." The Investigation disclosed that such stock transactions extended over a considerable period and from time to time Mellen was given various large sums for various purposes unstated on the books of the company. He ex plained that the amounts he received were for campaign contributions and for other expenses. Including one item -of $83,000 spent in connection with "certain leases of dock property in New York City." Commissioner Prouty says the Commission doubts the uroorlety of this laxity in ' the keeping of accounts between Mr. Mel len and his company. "If," says the report, "the president of this corpo ration expends money 4n connection with the purchase of a lease he should take a voucher for the same.s If the expenditure Is not such that a vouch er can be taken. It ought not to be made." It is pointed out that all of Mr. Mellen's notes to the New Haven have been liquidated, except one for $5,000, but many of them involve transactions which are .not disclosed by the books. - The marine equipment of the New Haven was manipulated, according to the report, in a way to defy analysis. "The New Haven earnestly insists says Commissioner Prouty, "that all these involutions and evolutions, all these kaleidoscopic transformations. injure nobody. This may be true, but the purpose of book-keeping is to ex hibit a plain history of the financial operations covered. The purpose, or at least the effect, of this New Haven book-keeping, is to utterly becloud those operations so as to render any intelligent understanding of them Im possible. If the thing done is legiti mate, why not do It in a direct way? If the purpose be honest, why clothe It In -the habiliments of the mounte bank? The use of such methods in the management of public utilities should not be tolerated. "Our general conclusion is that the outside financial operations of the New Haven Company for the last nine years have been wasteful in the ex treme and that the methods by which those operations have been conduct ed are unnecessarily . involved and complex. The reason for this is as apparent as the fact itself. The present management of that company started out with the purpose of con trolling the transportation facilities of New England. In - the acomnllRh men! of this purpose it -bought what must be had and paid what must be paid. To this purpose- and its at tempted execution can be traced every one of these financial misfortunes and derelictions." "It seems proper to add that while " the financial operations of this com pany have resulted in heavy losses, there Is nothing to Indicate that its solvency has been . impaired. The company has expended in the last Bine years upon 4ts road and equip- jnant over $50,000 a mile, a sum al MISS KATHERItlE FORCE, SISTER OF MRS; JOHN JACOB ASTOR, ENGAGED most equal to the average capitaliza tion of the! railroads of the United States at the beginning of that period. While this expenditure has been 'made with a free hand, there is nothing to show that it has not been wisely "made and much to indicate that the result has fully justified the outlay. The outside properties of the New Haven have been acquired at extrav agant prices. They are for the most part of substantial value, and In many instances are a kind of property the value of which should improve. The financial condition of the company calls for careful consideration and prudent action, but gives no occasion for hysteria. . Incidental to the acquisition of the control of the Boston and Maine by the New Haven, the report discusses the financial condition of the former. Of the showing for the fiscal year which ended June 30 Commissioner Prouty says: "The" time seemed imminent when the, Boston. &. Maine, which had, for seventy-two years declared regular dividends, , would not. earn its fixed charges. To declare this company insolvent and place it in the hands of a receiver would notnly inflict hard ship upon its stockholders, but would be a source of serious inconvenience to the territory in which it operates. and would shake the . confidence of railroad Investment as a whole. No such extremity should be permitted unless some fundamental reason re quires it." Criticism is contained in the report of . the methods of leasing other lines practiced by the Boston & Maine, the amounts being flat sums each year without reference to the ability, of the lines leased to make the necessary re turns. Such a method ..of building up a railroad system is denounced by the Commission as "inherently vicious." "It would "be a monstrous proposi tion," declares the report, "that be cause at some past day some board of directors of the Boston & Maine Rail road had agreed to pay an extravagant price for the use of the lines making up its system,, therefore the ownners of 'these properties are for 'all time entitled to obtai this undue re turn Upon their investment." No criticism is made of the New Haven f or ' its management of the Boston & Maine, although its ex penditures In operations "have been made with a free hand." In discussing the remedy , to be ap plied to the general railroad situation. Commissioner Prouty says: : "What is needed first of all to im prove the railroad situation in New England, is rest and an opportunity fori constructive work.' There is much" truth in the claim of these .car riers that they have been so occupied with investigations and so criticized by the public that no fair opportunity has been given 'for the operation of their railroad properties. , Ko rail road management can succeed with out' the support of the- public which It serves. "-It must not be forgotten that tie railroad Is a public servant in fact as well as in name, and that the ser vice which it renders depends largely upon the. treatment which it receives from its master. ... "But upon what terms is peace to be secured? In the past the New Haven Co., which has now become the dom inant factor and which is mainly to be considered, has proceeded in open violation of some laws and in disre gard of the spirit, if not the letter, of others. This course upon the part of that company is primarily responsible for this unfortunate agitation. - That agitation can not' stop, and ought not to stop, until its cause is r.emoved. Any betterment of railroad conditions in New" England must begin with the assurance that the New Haven man agement will act not only prudently but, above all, within the letter and the spirit of the law. - The Commission, the report points out, is keenly alive to the fact that the stocks of both the New Haven and the Boston & Maine are owned largely in New England by estates and persons who depend upon them as in vestments. "It is unfortunate," continues tht report, "that the widows and orphans must suffer, but they, in theory, are responsible for the management which their action, or possibly their failure to act, has sanctioned. If the stock holders of these properties", instead of villifying the critics of the New Haven, had given some attention to the charges made, their property would to-day be of greater value and the problem an easier one;" The Panama Canal Act, of 1911, re. quires the railroads to relinquish own ership or control of . steamship- Hnes competing with their rail lines. The report suggests that this law disposes of the matter of the New Haven water lines. It continues: . In our opinion the New Haven should divest itself of its trolley lines The acquisition of trolley - lines as steam lines which are competitive is already prohibited, but this does not reach the root of the matter." It is suggested that control by the New Haven of existing trolley lines probably would be used to prevent the construction of other and competing lines' in the future, although the ac quisition of existing lines might not be a violation of the Sherman Act. "We feel i that -the public," says the Commission, "may.- well protect itself against tne control or trolley lines ana the prevention pf; competition in that held. Such competition is not de structive of railroad business proper. In that connection, the report adds: "It ' is worthy of remark that the general counsel of the New Haven company testified that, while the leg islature of Connecticut did finally vote unanimously in favor of the New Ha ven ownership of trolley lines, sent! ment was at the outset the other way, and it was only after .$100,000 had been expended in 'molding the opln Ion of the legislature that the final re suit. was attained." The so-called merger between the New Htoen and the Boston & Maine i discussed at length but no opinion is given. The report .observes that Bos ton has more at stake than all the rest of New England, bojh as a port and as a market and that whether Boston would be injured by perpetua tion of the merger would depend large ly upon whether the corporation con trolling the railroads of New England was dominated by Boston or New York. It adds: "If the New Haven company is per- iV- 'L-: ' 1 ''It XVV-'V i-'- :- ----- r i Bar Harbor, Me, July 9 The an nouncement of the engagement of Miss Katherine Force, daughter of Mr. and Mrs. William Force of New jTork and sister of Mrs. John Jacob Astor, to Henri Harnlckell,- a New York brok er, has created widespread interest. It was said the wedding would not take i'jaue' iur euine time, DUt it is un derstood that it will be In Bar Har bor. Miss Force arrived here with Mrs. Astor in June and since has liv ed very quietly at La Selya. mitted to remain in control of the Boston & Maine system there will ex ist an almost exclusive monopoly of the transportation facilities by rail-; road in the greater part-of New England.- It would ' seem to be perfect ly apparent that if this monopoly is suffered to exist there must be some where a power of regulation which is co-extensive with the monopoly. In other words, the Federal Government must assume jurisdiction over the maintenance and operation of these railroads in so far as may be neces sary to secure to the public a proper service. This investigation empha sizes the fact that service Is often of even greater importance than the rate itself." As criticisrfi of both freight and passenger service developed, both -were considered. To both the New Ha ven and the Boston & Maine-the re port gives credit for promptitude and general excellence an tneir passenger service, although it is distinctly noted that "safety of ,operation has not been considered." Summing up the. passenger . service; Commissioner Prouty says: '-..-. - "Upon the whole the record-shows that the performance of the passen ger trains of the New Haven is good, distinctly better than that upon any other system operating in the state of New York; while that upon the. Boston & Maine is fully equal to that upon any New York system." "While there Is room for improvement, New Eng land should be well satisfied Upon the whole with the passenger performance of these lines under investigation." Adverse criticism is. made of the passenger train equipment of both the New Haven and the Boston & Maine. It is said by statistics to be not up to date. Both roads lac steel pars and vestibuled cars,, both of which make for comfort -and safety of .travelers. It is shown that other lines, in these respects, are far better equipped than the New England roads. The serious complaint of the freight service, particularly of the Boston & Maine, "demonstrated," the report says, "beyond question that in many cases there had been a most serious short-coming in the quality of the service rendered. It raised a pre sumption that the service of the Bos ton & 'Maine, as a whole, and that of the New Haven to a more limited ex tent, should be vigorously condemn ed." ' . Reeords of thousands of shipment: from various, points and at verious seasons were examined and compared. In many instances it was found that apparently there had been inexcusable delays and Commissioner Prouty re ferred to much of this service on the Boston & Maine as "decidedly bad" and "indefensibly poor." The report continues: "The statements furnished by com parison show that the service of the Boston & Maine is much less reliable than that . of either the Pennsylvania or Baltimore & Ohio, while that of the New Haven is slightly inferior to the Pennsylvania, but about on a par with the Baltimore & Ohio." Special reference is made to the excellent freight service on the Maine Central, and Commissioner Prouty de clares that "when the other two mem bers (the Boston & Maine and the New Haven) of this family equal it there will be no more complaint of in ferior freight service, and there is no good reason why substantially this service should not be accorded to all New England." In summing up that phase of the inquiry, the Commission .says: "Our general conclusion is that freight service upon the New Haven Railroad is Inferior to what it should be, although fairly comparing with that in other sections where .condi tions are substantially the same; that the freight service upon the Boston & Maine during the period covered was extremely poor and justified in great measure the criticisms it re ceived. No satisfactory condition can be brought about at many points on the Boston & Maine, however,, until Improvement has been made in the facilities at these points.' There must be ' a betterment in the physical con dition of the property before there can be an altogether satisfactory freight service." An extended inquiry was . made by Commissioner Prouty into the rate situation, although increases in rates and fares were only incidental to the general investigation.' The report points out that "for many years the railroad monopoly of New England has been more complete than in any other considerable section of this country. - The Boston & Maine has almost exclusively occupied the north: ern portfon of that section, while the New Haven has enjoyed the same ex clusive privileges in the south. "Our examination," the report con tinues, "fairly indicates that freight rates between points in New England, while somewhat higher In many in stances, .compare favorably with those in trunk line and "central freight as sociation territory. They are lower than corresponding interstate rates in other parts of the country, although not so 'low in some Instances as the commission-made rates of , several states in this outside territory. The long-distance rates which New Eng land enjoys are generally very favor able to that locality. It should be jioted in this connection that the cost of handling freight is greater in New England than in trunk line and cen tral freight association territory, and indeed, in most other parts of the country. . As to passenger fares, it Is pointed out that "the published schedule fare in Tew England is' somewhat higher than ,m either - trunk-line or centra, freight association territory," al though many conspicuous exceptions to this rule are noted. It is shown that practically- all of the passenger business "Of the New England roads is done under the mileage system of making rates "st that the actual fare paid by the people of New England for their local transportation by rail Is two cents per mile. To-day a pas senger can purchase a l,000rmile book good to bearer and good until used upon almost the entire railroad mile age of New England. In no other section of the country does an equal population enjoy this privilege. The average rate per passenger per mile upon the New York; New Haven & Hartford in the year 1911 was 1.708 cents: -upon the Boston & Maine, 1.801; and In the whole United States, 1.974." Summarizing the passenger-fare sit uation in New England, Commission er Prouty says : . s "Its passenger fares have been jnore favorable to the local traveling public than in any other portion of the United States. The recent decision of the United States Supreme Court sus taining tne statutory two-cent per mile tares in several states will tend to make that fare more general In the future. The doors and windows of the Con gregational church we're intact when the bell pealed forth the glad tid ings of the breaking of the shackles of more than a century before, while the Epiecopal bell bellowed its glad re sponse. The sieuins ana. tne cnurcn officials were ; amazed, but the boys had put one over on them. Early in j the evening a relay of faul Kevere, had posted themselves in the belfries and at the appointed time the bells clarJged the old alarm from street to street while the- disgusted officials wended their ways homeward convinc ed that "boys will be boye"" and the American sentiment will persist in spite of peace societies pleas and pla titudinous preachers. Miss Eleanor Cavanaugh, of New York city, is spending a month va cation with her mother, Mrs. Lucy Cavanaugh at their home on Mt. Pleas ant road. WALNUT TREE HILL NEWS. Miss Ina Driscoll has! been spending her vacation with Miss M. Merwin of Waterbury, who will return Wednes day with Miss Driscoll to enjoy New town air, and the pleasant .associa tions of the Hill. William Egan and a party of friends from. New York City spent Tuesday afternoon with his sister.Mrs. William Driscoll. The auto party re, turned to New York by way of New Haven the same evening. Mrs. Kate "Ward is a guest of her father, Maurice Leavy. . Mr. and Mrs. Frank Murray and children of Bridgeport enjoyed an auto trip to Newtpwn Sunday, calling on friends on Queen street. They ex pect to return to the country shortly, to enjoy their summer vacation in the healthful camping-out style, in securely arranged tents near Botsford Hill. - EDGE WOOD NOTES. Mr. and Mrs. James Brown of Jer sey City, N. J., spent several days with Mr. and Mrs. P. H. McCarthy. Their nephews, James and Charles Brown are. to remain for a longer vacation. Mrs. P. H. McCarthy went to Hol- yoke Friday, to bid adieu and wish bon voyage to her mother, Mrs. Lynn JACK LONDON IN NO FEAR OF DEATH WHILE IN HOSPITAL I r ; : t i IpiiRiilPii A - ' s '4 Tf San Francisco, July 9 After Jack London, the novelist, was operated on at a hospital in Oakland for appendi citis his condition was watched with anxiety, although the doctors had said and three sisters who sailed for Scot- ""t he wou'd likely pull throughin land on Monday.. Mrs. -Lynn and side of ten days. The writer has un- daughter started from Boston foi Glasgow and expect to be gone six weeks on tneir pleasure trip. Mrs. C. H. Bassett, Mrs". W. B. Snif- fen and Mrs. Ammon Taylor were vis itors to the Park City, Tuesday dergone many hardships and has come through innumerable perils during his interesting career at sea and in the Alaska gold fields. Before he went on the operating table he laughed and said he had no fear of the surgeon's knife. MYSTERY ABOUT DEATH OF GIRL FOUND DROWNED Wilkes-Barre, July 9. The police and" county authorities who are trying to solve the mystery surrounding the death ofMlss Alice Crispell, 19 years old, whose body was found floating in Harvey's Lake on Monday, are to day without a tangible clue, trfough theories are not lachSng. Herman Johns, mine worker who was the last person seen with the girl and who Is I in Jail on suspicion in connection with ', the case, maintains his calm demeanor j and adheres to the details of the story! he has told the last night he was witbj the girl, which- was Friday. One of the theories the authorities are working on is that Johns ms? j have had a rival for the hand of Mica j Crispell. In the letter Johns wrote to i the girl oh Sunday, after she had been missing two days, and which was made public yesterday he mentioned a man named "Canney." This turned out to be Harrison Cahn, of Wilkes Barre who when questioned by the police said he knew nothing about the circumstances of the death of the girl and further expressed the belief that Johns also was innocent. The police are investigating the story that the jrlrl had promised her favor to the one who should first swim across the widest part of the lake, a distance of about two and a half miles. -, Search is being made for a third man who was said to have been in terested in Miss Crispell, to learn if this can throw any light on the death of- the girl. t Friends of the Crispell family are divided as to whether the girl wasJ murdered or fell accidentally into the lake. .-'"'. TOWN DESTROYED BY FIRE. New Orleans, July 9 Independence La., a town of 1,000 inhabitant. wb practically destroyed by fire yesterday entailing a loss estimated as exceed ing $200,000. Only three buildings, a saw box factory and two dwellings were left.. - FuelTrouble are Over when you use a New Perfection Oil Cook-Stove. Just lift the tank from the cradle and fill- your New Perfection is ready for the day. You don't have to wait 'for-'.the fire to kindle. No coal or ashes to carry; no soot, smoke or dirt; no blackened ceilings. Note the new 4-burner New Perfectionr-the most complete cooking device oi the market, with indicator on font, cabinet top, etc Smaller stoves ' with 1, 2. or 3 burners. . . See your dealer or write, for full particulars to ; STANDARD OIL COMPANY of New York : NEWTOWN As previously announced th eAlumni Association of N. H. -S., met Monday evening and voted to give a whist party at Town hall, Tuesday evening. July 15th. This is the first venture of the united classes' and is for their benefit and through them for the High school. As is well known every year separately they have been able to fill Town hall to an extent witnessed at no other time than the graduation ex ercises. The following committee are in charge. Misses May Egan and Elea nor Cavanaugh 1907; Mr. Arthur Fair child, 1911; Miss. Helen Keane, Messrs. Phillips, Morris and George Ferris, 1912. 1 . , At the Town clerk's office: Warran tee . deed from Richard Sheppard to Frank Wilson botb. of trris town for land in Dodgingt6wn district. . Dr. ' Peck of Mt. Pleasant has re ceived from Contractor Brew estimates and plans for a boat house .on Foun tain lake and a garage in the rear of his house contiglous, which he ex pects to have built in the near future-. Those two well known sleuths. Sher iff A. B. Blakemaa and Constable T. Carlson, had a very busy twenty-four hours at the advent and during pro gress of the national holiday. From midnight of July '3rd, they were on duty against the operations of the bubbling boys who sought to carry out the prophetic vision of the old fogy. John Adams, who said future generations would celebrate the pas eage o the Declaration of Independ ence, by the ringing of bells, bonfires and illuminations. Hence fbese repre sentatives .of modern law and order stood round the Congregational church all that early morning and halted all gatherings, but unsuccessfully, as all i residents of th borough well know MMeiiaJm ficMem O '1 MM 1 IB 1 III ' -til - W ! i r I i SILVER WHITE LOOKS BRIGHT SANITARY ODORLESS NO RATS NO SHRINK NO SMELL This Enamel Metal Kitchen Cabinet is an inno vation in household equipment. It contains all the compartments and containers found in the ordinary wood cabinet, but many advantages over the old style. It is distinctively a cabinet for the housewife of distinctive ideas -the woman who desires to con vert her kitchen into not only a practical ancl labor- saving institution, but "a place beautiful in its neatness." WE INVITE YOUR CAREFUL EXAMINATION The Lyon&Grumman Co. Fairfield Ave. at Middle St. Xjargest Hardware Store In the East V.