Las Vegas optic. (East Las Vegas, N.M.) 1908-1921, 1914-07-13

assistance throughout tnlS lnVeStlga-
tion."
Significant Incidents
The report cites these Significant
Incidents:
Marked features and significant in
cidents in the loose, extravagant and
improvident administration of the fin
snces of the New Haven as shown in
this investigation are the Boston and
Maine despoilment; the inquity of the
Westchester acquisition; the double
price paid for the Rhode Island troll
,eys: the recklessness in the purchase
of Connecticut and Massachusetts troll
leys at prices exorbitantly in excess
Of their market value; the unwarrant-
ed expenditure of large amounts in
educating public opinion; the disposi-
ton, without knowledge of the direc-
tors, of hundreds OF thousands of dol.
lars for influencing sentiment; the
habitual payment of unadvised vcuch-
srs without any clear specification of
details; confusing INTERPRETATION of the
principal company and its subsidiaries
and consequent complication of ac-
counts the practie or financial le-
gerdemain. in issuing lalGe blocks of
New Haven stocks for notes of the
New England Navigation company and
manipulating these securities back an6
forth; fictitious sales Of New Haven
stock to friendly parties with the de-
sign of boosting the stock and unload
ing on The public at the higher mar
ket pr te'; the unlawful diversion of
corporate funds to political organiza-
items; the scattering of retainers to
attorneys of five states, who render
ed no ittmized bills for services and
who conducted no litigation to which
the railroad was party; extensive
use of a paid lobby in the matters as
to which the directors claim to have no
Information; the attempt to control ut
terances of the press by substituting
reporters; payment Of money and the
p1 ofligate issue of free, passes to leg
islators and their friends; the invest
ment of 100000 in securities of a
New England newspaper; the regular
employment of political bosses in
Rhode Island and other states, not for
the purpose of having them, perform
any service but to prevent them. as
Mr.. Mellen expresses it, from becom-
ing active on the other side; the re-
tention of John L, Billiard for more
than $2,780;OOO in transaction in
which he represented the New Ha-
ven and into which he invested not a
dollar; the inability of Oakleigh
Thorne to account for $1,032, 900 of the
funds of the New Haven intrusted to
him in carrying out the Westchester
proposition; the story of Mr.. Mellen as
to the distribution of S1,200,000 for
corrupt purposes in bringing about
amendments of the Westchester and
Port Chester franchise; the domina-
ton of all the affairs Of this railroad
/ by Mr. Morgan and Mr.. Mellen. and
the absolute subordination of other
members of the board of directors to
the will Of these two; the unwarranted
increase of the New Haven liabilities
from $93.0O0,0O0 in 1903 to $417,00O,-
600 in 1918; the increase in floating
notes from nothing in 1903 to approx
mately $40,000,000 in 1913; the inde-
fensible standard of business ethics
and the absence of financial acumen
displayed by eminent financiers in d.
recting the destinies of this road in its
attempt to establish a monopoly of
the transportation of New England.
A combination of all these has result
ed in the present deplorable situation
in which the affairs of this railroad
are involved"
From the facts developed in this in
vestigation it would seem that there
is little question concerning the recov-