The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-07-14
Mellcn Management Accused
of Reckless Financing
and Corruption.
SHAM METHODS CHARGED
TO MASTER FINANCIERS
Trickcry. Shameless Violation
Of Law and Negligence Also
Attributed TO Them.

WAsHfNGroN. July 13.--Tn one Of the
harshest reports ever handed down Ivy
a Government bureau the Interstate
Commerce Commission has held the d.
rectors OF the old management OF the
New York, New Haven and Hartford
Railroad criminaly negligent and sub
ject to prosecution under the sherman
antitrust and other laws.
The commission has put the matter
OF criminal proceedings in the hands Of
Attorney General McReynods by refer
ring 70 him n complete record of The
testimony taken before the committee
The commission has also called the at
tenton Of District Attorney whitman
and prosecuting officers In Massachu-
sets and Rhode Island to possible vio-
lations Of State laws.
The commission estimates that be-
tween s70oO0,oOo and 100000 900 has
been lost to (, New Haven stockholders
through waste and impairment Of values
under the old management
Urges Suits Against Directors.
It expresses the opinion that part
at least of this amount should he recov-
cred from the Individual directors and
others.
THE result Of our research into the
financial workings of tho former man
agcmcnt of the New Haven system"
says the report. has been to disclose
one of the most glarinG instances ~
maladministration revealed IN all tho
history Of American railroads"
The commission finds that tho lats
J, 7. Morgan and Charles S. Mellen
dominated the affairs of the New Haven
road and that the other members of the
board Of directors subordnated them
selves To the will Of these two The
commission refers repeatedly. however,
to the Now Haven directorate and off,
GERS az the "Mellen- Morga n Rockefeller
management"
The New Haven directorate SO harshly
attacked by the commission was made
up as follows;
William Rockefeller. Charles r.
Brooker. Edwin Miner. william
skinner, d. Newton Barney. Charles
s. Menen, Robert w. Taft James q.
Elton. James S. Hemingway. A. Hea-
ton Robertson, Frederick r. Brew
stcr. Henry X. McTIarg. Alexander
CCchrane. John l.. Billiard. George r.
Baker. r. De Witt Cuyler. Theodore
y. Vail, Edward Milligan. Francis
T Maxwell. Sidney W. Winslow.
Samuel Rea, Laurence Minot. Nor
ton =. Plant. De " H. Warner. the
late J. =. Morgan and John T. Pratt.
individual Responsibility.
OF the individual responsibility Of the
New Haven directors the commissions
report says:
at IL inconcevable that these wrongs
could have gone on without interference
II the members Of the board of directors
had been true to the faith they owed
the stockholders. number OF drec-
tors appear in many instances to have
voted without knowledge and to have
approved the expenditure Of many mill
ions without Information. According 20
testimony they merely approved what
had been done by some committee or by
some officer OF the company.
1.-THE directors minutes reveal that II
was largely a body OF ratification, and
not put horlZation, which the law In
tended board OF directors should be.
None OF the directors would have been
SO careless in the handling OF his own
money as the evidence demonstrates
they were with the money OF other
people.
"'The directors, actively or passively
acauiesce in the efforts OF the Mellen-
Morgan Rockefeller regime 10 extend
the domination Of this corporation over
the whole transportation field in New
| England.
| III these directors who were faithlsso
| to their stewardship were held respon-
| slhle in the courts and at the bar OF pub
| lie opinion for the failure to do those
things they should have done the les
son to directors who do not direct would
| be very salutary
Most OF the directors Of the Ne"