The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1914-07-13

and improvident administration OF
the finances of the New Haven az
shown in this Investigation nre the
Boston a. Maine despoilment: the in
equity OF the Wcstchester acquisi-
tion: the double price paid FOR the
Rhode Island trolleya: the reckless
ness in the purchase OF Connecticut
and Massachusetts trolleys at prices
exorbitantly Ia excess OF their mar
ket value; the unwarranted expendi-
ture OF large amounts In educating
public opinion;" the disposition,
without knowledge OF the directors.
OF hundreds Of thousands of dollars
for influencing public sentiment: the
habitnal payment OF unadvised
vouchers without any clear specifica-
ton Of details. confusing inter-rela-
tion OF the principal company and its
subsidiaries and consequent compli-
cation Of accounts; the practice of
financial legerdeinnin in issuing large
blocks of New Haven stock for notes
Of the New England NAVIGATION com
pany, and manipulating these Aeeur-
tiles back and forth: fictitious sales
OF New Haven stock 20 friendly par
ties with the design OF Eoosting ths
stock and unloading on the public at
the higher market price,. the un-
lawful diversion OF corporation funds
10 political organizations: the scat
toring of retainers to attorneys OF
i've states. who rendered no Item
lied bills FOR services and who con-
Quoted no litigation to which ths
railroad was a party, extensive uss
OF paid lobby in the matters as to
which the directors claim TO have no
Information. the attempt 20 control
utterances of the press by substituting
reporters; payment or money ana tho
profligatc issue of free passes to leg
iHlators and their friends. the invest
ment of 100000 in securities OF
New England newspaper. the regu-
lard employment OF political bosses
in Rhode Island and other states. not
for the purpose of having them per-
form any service but 10 prevent
them. as Mr.. Melleu expresses Il.
from becoming active on the other
Side the retention of John r.. Bills
lard for more than 81. .OOO, 600 la a
transaction in which he represented
the New Haven and into which he
/ Invested not dollar; the inability of
! onklcigh Thornc 10 account for
$h082,06p of the FUNDS of the New
Haven intrustcd To him In carrying
Out the Westchestcr proposition: the
story OF Mr.. Mellen as To the distrtl-
button OF Sieop,00o for corrupt pur-
poses In bringing about amendments
Of the Wostchester and Portchcsier
franchises; the domination OF all the
Affairs OF this railroad by Mr.. Nor
KAN and Mr.. Mellen and the absolute
sunordination Of other members OF
the board OF directors 60 the will of
thesy twoi the unwRrranted Increase
ut the NeN Haven liabilities from
ss' nou'oOO in 1903 10 til7. Geo
IA 1915 the Increase In floating notes
from nothing IN 1898 70 approxi-
mhtey Ai7,ooo,Oe IN 1913: the in
deiensible standard OF business eth-
't7 ana the absence OF financial acu-
men displayed hy eminent financiers
in directing the deHtinies Of this rail-
road In It's attempt "a establish a
monopoly 81 the transportation OF
New England
- combination OF al these has
resulted IN the present deplorabls
situation in which the affairs of this
railroad are involved.
From the facts devei0ped in this
invesugation Il would seem that
there is little question concernng the
recovery of substantial amount of
the stockholders money that has
been wasted Several Items OF this
nature are briefly summarized;
iuUGE SUMS THAT
MAY BE RECOVERED
"oyernaid Perry ana Thorne I'm
commissions, Sa0z. T50
Illegally spent IN obtaining Vest
chester franchise changes. ti,524.-
072.71.
In the Billiard transaction. tg.-
7fS.7OO.
The money with which Billiard
acquired the i5755 additional shares
OF common stock and bGs shares of
preferred stock OF the Boston A.
Maine Railroad company was fur
nished by the New England Naviga-
tion company. This stock was turned
back "a the navigation company toe