The enterprise. [volume] (Harlem, Mont.) 1899-1926, 1914-07-16
ROADS METHODS
H0TLy ATTACKED
Interstate Commission Re-
ports on New Haven.
LAW VIOLATION ALLEGED
Directors Pronounced Criminally Neg.
suent and Attention of Prosecuting
Attorneys Is Directed to the Facts
Unearthed-Loss to Stockholders
Exceeds $6o,00o,oco.

attorneys is directed to the Fact:
Unearthed-Loss to Stakeholder:
Exceeds $6O,0000Co.
Washington, July 14.-"One of the
most glazing instances of maladmin
istration revealed in all the history OF
American railroading," is the inter
state commerce commissions charac
terization of it's findings in the inves
tigation OF New Haven railroad tinan
cial affairs, reported to the senate
In report of 10000 words, prob
ably the most drastic in terms of any
New Ravens directors are declared
to be criminally negligent.
Evidence pointing to violation OF
law has been transmitted to district
attorneys in Massachusetts, Rhode is.
land and New York, and the federal
department of justice.
"A reasonable estimate of the loss
to the New Haven by reason of waste
and Encouragement says the report,
will emount to between $4,000, 900
and $90,000,00O. Directors should be
individually liable to civil and Grim.
inal laws for the manner in which
they discharge their trust
All Under MeIIen's Rule.
All the commissions structures
We're upon the management of the
New Haven system under former
President Mellen.
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.
tial assistance throughout this inves.
tigation."
John L. Billiard and the Billiard com.
pany were merely agencies of the
New Haven; Billiard never used dol
lar of his own money and burned his
books and papers. 1t was not the un.
derstanding of the New Haven board
that he should take profits of more
than $2,000,000.
"All the assets of the Billiard com.
pany belong to New Haven stockhold.
ers and a suit by the railroad against
Billiard and those who participated in
the transactions should be maintain.
ed says the report.
Dummy corporations and their use,
whick the report says in the New
Haven was frequent, are condemned
in unmeasured terms.
Significant Facts Cited.
Marked features and significant
incidents in the loose, extravagant and
improvident administration of the
finances of the New Haven as shown
in this investigation are the Boston
and Maine despoilment; the Unequal
ity of the Westchester acquisition;
the double price paid for the Rhode
Island trolleys; the recklessness in
the purchase of Connecticut and Mas
sachusetts trolleys at prices exorbi-
family in excess of their market val
uC, LIC uIlWdIIduCCu expenditure VI
large amounts in educating public
opinion and the disposition, without
knowledge of the directors, of hun
dreds of thousands of dollars for in
huencing public sentiment"
Continuing it's enumeration of "sig-
ni6cant Incidents" the report lists
1.-The habitual payment of unitemized
vouchers without any clear specifica-
ton of details; the practices of finan-
cial legerdemain in issuing large
blocks of New Haven stocks for notes
of the New England Navigation COM
pany, and manipulating these securi-
ties back and forth; fictitious sales
Of New Haven stock to friendly par
ties with the design of boosting the
stock and unloading on the public, at
the higher market price, and the un-
lawful diversion of corporate funds
to political organizations"