Grand Forks daily herald and the evening times. (Grand Forks, N.D.) 1914-1914, 1914-07-13
SIXTY TO NINETY MILLION IN
new HAVEN LOOT, SAYS REPORT
BITTER Arrangement Of ROADS
METHODS MADE BY COMMISSION
Most scathing Finding Ever Handed Down by Inter
state Commerce Board-Many Features of the
Mellen Administration Roundy Scored.

Scored. -
instances of aadinstraton revealed in all the history
of American railroadng is the interstate commerce
commissions characterization of it's findings the
gaton of the New Haven railroads financial affairs re-
ported to the senate today
In report of 10000 words probably the most dras-
tic in terms of any made by the commission. the
New Havens directors pronounced "crninaly negi
gent" .' <r 49,
The evidence pointing to violation Of laws has been
transmitted to the district attorneys in Massachusetts,
Rhode Island and New York. and also to the federal de-
partment of Justice ..
"A reasonable estimate of the loss of the New Ha-
ven by of waste and misnanagement, says the
report will amount to between $6OO000O and $9OOOO-
OOO The directors should be made individually liable
civil and criminal laws for the by which they dis
charged their trust"
All the commissions structures upon the manage
ment of the New Haven system under former
President Mellen
In justice to the present management, the commits
sion says only is fair to state that Chairman Howard
Elliott and Walker D. Hines, special counsel have
operated with the commission and rendered substan-
tlal assistance throughout this investigation
The report cites these Significant Incidents
Marked features and significant incidents in the
loose, eravagant and provident administration Of tho
finances Of the New Haven shown in the nyestiga-
tion the Boston Maine despoment; the niquity Of
the Westchester transaction; the doublepay for the
Rhode Island troeys the recklessnes in the purchase
of the Connecticut and Massachusetts, trolleys at
prices exorbitanty in of their market
value; the unwarranted expenditure of large
amounts in educating public opinion the ndisposton
without knowedg of the directors of hundreds thou
sands of dollars for influencing public sentiment the
habtua payment of unitem lied vouchers without any
clear specification of details; the confusing nter-reation
of the prnc pal company and its subsidiaries and conse-!
quent complication of accounts the practice Of financial
egerdenlain in issuing large blocks of New Haven stock
to friendly parties with the design of boosting the stock
and unloading on the public at the higher market
price, the unlawful diversion of corporate funds to poll
cal organizations the scattering of retaner to attor
neys OF five states who rendered iteized bills for
services and who conducted litigation which the
railroad party; extensive of paid lobby in the
matter to which the directors claim to have infor-
nation the attempt to control the utterances Of press
by subsdizng reporters payment of money and proi-
gate issue of free passes to legislators and their fend
the investment of 100000 in securities of New Eng
land copany the regular employment of political boss
es in Rhode Island and other states for the
of holding them for any service but prevent he as
Mr.. Melen expresses it, from becoming active on the
other side the retention by John Billiard Of than $
100000 in transaction bywhich he represented the
New Haven and into which he had invested not dol
lar; the inability of Oakegh Thorne account for ST.
$4,000 Of the funds Of the New Haven entrusted him
in carrying the Westchester proposition the storv
of Mr. Melen as to the distribution Of s12ooOoo, and
scores of other like matters" ~:
;: Absolute subordination is Cited. =
Other significant incidents the domination Of ALI
affairs Of this railroad by Morgan and Mellen the abso
lutte subordinaon of other members of the board of d
rectors to the will of these two the unarranted in
of New Haven liabilities from $4,000 900 in 1903
to SALT 100000 in 1913; the increase Of floating notes
from nothing in 1903 to 600 in 1913: and the IN
defensbe standard of business ethics and absence of
financial acuen displayed by eminent fnanciersin di
recting the destnes of this railroad in its attempt to
tabish monopoly of transportation of New England.
The combination of all these Incidents" says the
report has resulted in the deporahle situation,
in which the affairs of the railroad are involved s
Seek to Recover 125oooy0oo. q 7's
Boston Mass, July 13.-Attorneys for the minor
ity stockholders Of the New Haven railroad today BeRa
preparation Of the suit be filed this week demanding
that the directors make good 600 alleged
have been wasted by the management Of the road TIE