New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-07-14
SIGNIFICANT INCIDENTS .
IN LOOTING OF NEW HA VEN

covery Of a substantial amount OF the
stockholders money that has been
wasted. Several items Of this nature
will be briefly summarized:
"Ovcrpaid Perry and ThOrne IN com
missions. S302.75o
illegally spent in obtaining West
chester franchise changes, sl,324,-
or -.
an the Billiard transaction, S2,7i8,-
700.
The money with which Billiard &C
QuirCd the 15.755 additional shares OF
common stock and j.S2G shares of pre-
ferrod stock OF the Boston Maine
Railroad Company was furnished by
the New England Navigation Company.
This stock was turned back to The
navigation company for $3,370,O62. i
would seem that a suit by stockhold-
ers for the recovery of the profit
which is Justly due me navigation
company. if any was made by Billiard
in the transactions involving these ad-
ditional shares. could be maintained.
"If any expenditures were made ~
violation of the antitrust laws OF the
United States. are not such eXpendl-
lures ultra wires, and is il not the
legal obligation Of the directors to sat
isfv out Of their own fortunes any loss
which results to the company?
~ these are all pertinent questions in
the light % the developments brought
about by this investigation.
"Ouly lawful expenditures are au-
'horized
"All Illegal disbursements are ultra
wires.
directors cannot without accounta-
bilty dcplete a corporate treasury in
ventures which are in violation Of the
laws of the land.
Question of Immunity.
"In the Investigations the commits
lion is required to make from time 20
time j. has, in accordance with its
usual custom. exercised due caution
not 10 require the testimony Of wit
nesses where immunity might result,
except when it is necessary in order 10
get al the truth The purpose Of the
Immunity statute, as the commission
understands IL. was to aid in the search
. for facts by removing the obstacle o.
witnesses refusing 10 testify or tlC
ground Of Standardization. and un-
der the statute the commission mas al.
ways cndeavOTed % exercise It sound
discretion IN this regard.
an carrying out the instructions
OF the Senate in this case the com
mission mas therefore kept ia mind
the warning Of the Department Of
Justice 20 carefully consider before
placing "a witness upon the stand the
effect his testimony might have IN
the way OF immunizing him from
criminal prosecution. The commission
has only used such witnesses as
seemed necessary to fully answer the
Scnate's inquiry and has refraired
from calling those witnesses whose
evidence, while interesting, might be
merely cumulative.
with respect 10 Mr.. Nellen, for
Nor president of the New Haven sys-
TEN. IL was the belief of the commits
sion that his testimony was neces-
sary in this investigation, and the re-
suit, in our opinion, fully justiies
this position.
evidence Of wrOngdoing such as
was disclosed i'm this hearing is diff
fcul. 20 obtain Men do not conduct
such transactions in the open, but
rather in secret and In the dark
Only those involved, as a rule, have
direct information. So some Of the
evidence of necessity must come
through participants
THE commission has proceeded
upon the idea that it is better to eX-
pose wrongdoing, even if in doing 50
il would be necessary 20 use a few
witnesses whose testimony might
bring them immunity, than, through
fear Of bestowing immunity on some
leave facts unknown and uncovered
and thereby give immunity to all, no,
only as 10 prosecution but TO the
stigma Of exposure as well.