New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-07-14

All the commissions structures were
on the management of the New Haven
.ystem under eX-President Mellen. In
Justice 70 the present management, the
commission says. 1t is only fair to say
that Howard Elliott, chairman, and
Walker d. Hines, special counsel, have
cO-operated with the commission and
rendered il substantial assistance
throughout this investigation
The report cites these significant
incidents"
MARKED features and significant in
cidents in the loose, eXtravagant and
lmprovident administration Of the
finances of the New Haven, as shown
in this investigation. are the Boston &
Maine despoilment. the inequity Of the
Westchester acquisition, the double
lrice paid for the Rhode Island troll
leys. the rccklessness in the purchase
of Connecticut and Massachusetts troll
leys at prices eXorbitantly IN excess OF
their market value. the unwarTanted
expenditure Of large amounts IN 'edu-
eating public opinion the disposition.
without knowledge of the directors. OF
hundreds Of thousands of dollars Tor
influencing public sentiment; the
hSbitual payment of unitemlZed vouch-
CrS without any clear specihcatlon OF
details. the confusing interrelatlon OF
the principal company and its sub
salaries and consequent complication
O. accounts.
THE practice of financial legerde-
main i'm 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 10 friendly parties with the de-
sign Of boosting the stock and unload
inr on the public al the higher market
pricc.' the unlawful diversion OF cor
Iorate funds 20 political organizations
the scattering OF retalners TO attorneys
of five states. who rendered no Itemlzed
bills for services and who conducted no
I-ication to which the railroad was a
narty. extensive use of paid lobby m
Tho matters as 20 which the directors
claim 20 have no information; the at
tcmpt 20 control utterances OF the press
bv Substituting reporters. payment o.
money and the proAlgate issue o. Tree
fas,cs 20 legislators and their irehdS'
"Thc investment Of 100000 m Sc
cI-itle- Of e. New England newspaper;
the regular employment OF poNticai
bosses in Rhode Island ana olaeI
states. not for the purpose Of having
.hem perform any service. but 70 pre-
vent them, as Mr. Ncllen expressed IT,
from becoming active on the othe 7,
side: the retention by John J.. blildtd
of more than S2.10O.OO0 in a transac-
ton IN which he represented inc Ne"
Haven and i'm which he invested not a
dollar. the inability Of Oakleigh
Tborne TO account for Sl,O32,OOO Of the
fnnds Of the New Haven intrusted 10
him i'm carving out the Westminster
proposition: the story or Mr.. Mellen
Is 20 the distribution OF 81 100000 for
corrupt purposes IN bringing ABOUT
amondmeuts of the Westchester and
Port Chester franchises; the DONNA,
ton Of all the affairs of this railroad
biz Mr.. Morgan and Mr.. Mellen and the
absolute subordination OF other mem
hers Of the board Of directors 70 the
will Of these two.
"Thc unwarranted increase Of Tho
New Haven liabilities from $J3'uVO'VV'
i'm 1903 10 Sil7.OO0,O0O in 1918; the
increase 100 floating notes from notn
ing I'm 1903 10 Approximately s4O,CpO'
COO in 1918: the lndeiensibIc STANDARD
Of business ethics and the absence o
financial acumen displayed by emincn
Gnancicrs boz directing the ceatinles o
this abroad in its attempt 10 eStab
Ish Il monopoly o. the Transportation
OF New England.
"a combination Of all these has re
suited IN the prcscat deplorable sltaa
ton IN which the affairs Of this rall
road are involve.
Money illegally Spent.
From the facts developed in this
investigation ~ would seem that there
b. little question concerning the re