Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-07-14
NEW HAVEN R. R.
CASE IS NOW Up
TO M'REYNOLDS
Next Move Lies With Depart
ment of Justice and State
Officials.
BOOKS NOT KEPT FROM
ExAMINERS-MoRGAN
Wilson's Supporters Claim Rec
concentrations Follow His
Trust Legislation Policies.

WASHINGTON, July 14.-With its
unmeasured denunciation of the
maladministration" of New Haven
financial affairs and criminal neg
llgence' of directors. the Interstate
Commerce Commissions sensations
report on its investigation of the New
England railroad lines was today be-
fore. the Senate committee. working
10 frame legislation for control Of
railroad financing, interlocking direc-
torates and other subjects concerned
in the Investigation.
administration supporters declared
tnat many of the Recommendation If
the commission agreed perfectly with
portions of President Wilson's trust
legislation program.
Inc next step in New Haven affairs
however, was expected from the de-,
partment of Justice. Apart from al
iesed violations of laws of States and
llaplllty OF the New Haven's directors.
over which Attorney General Nc,
reynolds has said the federal statutes
nave no control, the department was
concerned chiefly in the commissions
iililuinss my, lnat all the acts character
lzed as corrupt and unlaHftllp wore
Tor the purpose of setting IN mo
nopoiy in violation of the federal
statutes
Inc department of justice has taken
.nat view in its dissolution suit
against the New Haven system
wnlch probably will be filed within
tne next few days, unless the railroad
olilclais reverse their attitude and ac-
cept the terms of peaceful dissolution
Inc possibility of any criminal acts
peing IN violation of federal laws was
oeing considered by the department
put thst phase-of the case is apart
from the dissolution proceedings.
Certified copies of testimony and
exhibits of evidence gathered bv tbe
commission s examiners were on their
way by registered mail today to dis
trict attorneys in various iurisdic-
tions in New YORK, Connecticut and
Rhode Island. in which New Haven
transactions We're carried out. The
testimony and exhibits relate to such
acts as the commission has charac-
terized as unlawful. but upon which
state officers, II any, must act. The
ssiltiia record was sent some time ago
TO the department of justice. where
II mas been under study by the attor-
neys in charge of the governments
contemplated dissolution suit.
NEW YORK, July 14.-Wh,e J. p.
Morgan & Co. consistently refused to
discuss the report of the Interstate
Commerce Commission. severely CEN
suring the directors under the admin
istration of Charles S. Mellen, for
reckless and prof1igate" financial op-
erations, estimated to have cost
stockholders from SOS, 0O0 900 to $780,
100000, j. p Morgan himself denies
the charge that the commissions ex
aminers were not accorded full access
to the firms books bearing on the
New Haven. Correspondence made
public at Washington told of Com
missioner McChord directing the chief
examiner to cease the work, as it
was useless
Late last night Mr.. Morgan issued
this statement in reply:
Morgan's Statement.
1.-The information with regard to
the withdrawal of the Interstate Com
merce Commissions examiners from
the examination of the books of our
firm is the first intimation that 1
have had that they have been re-
called"
The New Haven situation is now
out of the hands of the Interstate
Commerce Commission, and what ac-
ton, if any, is taken on the recon-
mendation that the directors be pros
ecuted lies with the department of
justice and the district attorneys in
the States in which the system has
lines. Prosecuting attorneys at New
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