The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1914-07-17
new HAVEN ROAD
EDs90,000,000
COMMERCE COMMISSION DE.
cLAREs DIRECTORS "cRIM-
NALLY NEGLIGENT"
CHARGES ARE MANIFOLD
Suit Will Be Begun Against Former
Heads to Recover Millions Alleged
to Have Been Squandered-
Some of the Findings.


negligence" and "one of the most glar-
ing instances of maladministration re-
vealed in all the history of American
railroading" were the terms the inter
state commerce commission employed
In reporting to the senate on its in
vestigation of New Haven railroad
financial affairs.
Conclusion of Commission.
The commissions conclusion may be
summed up this way:
Losses to New Haven stockholders
for the acts of their directors will
range from $60000,000 to $90,O00,000.
Suits to recover the money should lie
In some cases.
Many of the transactions, character
lied violations of the law of New York,
Rhode Island and Massachusetts and
the federal antitrust laws, have been
reported to the authorities Of the
states and the federal department of
Justice.
When Depreciation Came.
The depreciation of the Boston &
Maine began when the "Mellen-Mor-
gan-Rockefeller management" came
Into control
John L. Billiard and the Billiard COM
pany were merely agencies of the New
Haven; Billiard never used a dollar of
his own money and burned his books
and papers. 1t was not the under
standing of the New Haven board that
he should take profits of more than
81, 100000
"All the assets of the Billiard COM
pany belong to New Haven stockhold-
ers and suit by the railroad against
Billiard and those who participated in
the transaction should be maintained"
Dummy corporations and their use,
which, the report says, in the New
Haven was frequent, are condemned in
lnmeasured terms.
Score Interlocking Directorates.
The system of interlocking directo-
rates is condemned as it existed on the
New Haven, and in general the COM
mission says it found most every other
interest was better represented on the
New Haven board than the average
stockholders.
President Mellen's dealings with for
ner Police Inspector Byrnes tot New
York in the Westchester railroad
transaction were branded as corrupt
and unlawful" The amount Illegally
expended should be recoverable.
The purchase of Rhode Island trolley
lines and coastwise steamships were
described as extravagant and waste
tuI
All the transactions, the commission
holds, were consummated with the OBJ
Iect of setting up complete transpor-
tation monopoly in New ngland in
violation of the federal statutes.
All the commissions structures were
upon the management of the New Ha-
ven system under former President
Mellen.
Elliott Is Commended.
In justice to the present manage
ment the commission says it is only
fair to say that Chairman Howard
Elliott and Walker D. Hines, special
counsel, have co-operated with the
commission and rendered it substan-
Lldi dSSlSIdu uIOuSuOuI IllS luNcSti.
CATION"
Extensive use Of paid lobby in
The matters as to which the directors
claim to have no information" is an
other significant incident" as are
"the attemept to control utterances of
the press by substituting reports.
Suit to Recover.
Boston, Mass.-A demand that the
directors of the New York, New Haven
& Hartford railroad aid minority
stockholders in the suit to recover
about $125 100000 alleged to have been
wasted by the management, has been
made by attorneys for the minority
stockholders. The suit, which, it is
said, will be filed this week, is to be
directed against the estate of J. P.
Morgan, William Rockefeller, Lewis
Cass Ledyard and others of the New
Haven directorate at the time the
transactions that have been the sub
jects of inquiry by the interstate COM
m orco com mi 9 SiOD woro -noda