Pine Bluff daily graphic. (Pine Bluff, Ark.) 1893-1942, 1914-07-14
|. c. B. MAKES
REPORT ON new
HAVEN INQUIRY
CONTINUED FROM PAGE ONE)

maven was frequent, are COuuclllHttl
in unmeasured terms.
The system Of interlocking direc
tors is condemned as it existed in the |
New Haven and in general. The COM
mission says it found most every +
other interest was better represented
on The New Haven Than The average
stockholders
President Mellen's dealing with for
mer folice Inspector Byrnes Of New
York in the Yves chester Railroad
transaction, We're branded as cor
rupt and unlawful. The amount IL
legally expended should be recover
able
The purchase Of Rhode Island troll
ley lines and coastWise steamships
We're described as extravagant and
wastetul.
All the transactions the commits
sion holds, were consumated with the
object OF setting up a complete trans
portation monopoly in New England
IL violation of the federal statutes.
Evidence pointing to violation OF
law has been transmitted to district
attorneys in Massachusetts, Rhode
Island and New York and the federal
department of justice.
Criminal Waste of 9G.O0G, 900.
"A reasonable estimate of the loss
to the New Haven by reason of waste
and mismanagement," says the report,
will amount to between $4,000 600
and $9c,000,000. Directors should be
made individually liable to civil and
criminal laws for the manner in
which they discharged their trusts
All the commissions structures were
upon the management of the New Ha-
ven system under former President
Me.len. In justice to the present man
agement the commission says it is but
fair to say that Chairman Howard
Elliott and Walker d. Hines, special
counsel, "have co-operated with the
commission and rendered it substan-
tial assistance throughout this in
vestigation." The report cites these
significant Incidents"
Marked features and sfnificant in
cldents in the loose, eXtravagant and
lmprovident administration of the fl
nances of the New Haven, as shown in
this investigation, are the Boston and
Maine despoilment. the iniquity of the
Westminster acquisition, the double
price paid for the Rhode Island troll
leys, the recklesssness in the pur-
chase of Connecticut and Masssachu-
etts trolleys at prices eXorbitantly in
eXceso of their market value, the I'M
warranted expenditure of large
amounts in educating public opin-
ion
disposition without the directors,
knowledge of hundreds of thousands |
of dollars for influencing public senti- |
ment. 4
"Hahitual payment of nnitemized |
vouchers without any clear specifica-
ton of details.
"COnfusing INTERPRETATION of the
principal company and it's subsidiaries
and consequent complication of ac-
counts
practice of financial legerdemain
in Issuing large blocks of New Haven |
stocks for notes of the New England |
Navigation company and manipulating
these securities back and forth.
"Fictitious sales of New Haven
stock to friendly parties with the de-
sign of boosting the stock and UNI
loading on the public at the higher
market price,
"Unlawful diversion of corporate
funds to political organizations.
Scattering of retainers to attor-
neys of five states who rendered no
itemized bills for service and who con-
Quoted no litigation to which the rail-,
road was party.
"To the excessive use Of a lobby
paid in the matters as to which the
directors claim to have no informa-
ton.
'In attempt to control utterances of
the press by substituting reporters.
Payment of money and the profli-
gate issue of free passes to legislators
and their friends.
Investment of 100000 in securities
of New England newspaper.
Bought "BOsses.''
Regular employment Of political
bosses in Rhode Island and other
states to prevent them, as Mr.. Mellen
expressed it, from becoming active on
the other side.'
Retention by John N. Billiard of
more than $2,S00,0O0O in a traansac- I