The Fairmont West Virginian. (Fairmont, W. Va.) 1904-1914, 1914-07-13
Directors
fcoNr1Nu1Epl FROM PAGE oNE.l I

should be made Individually liable to
civil and criminal laws for the man
|lIer in which they discharge their
trust. 5I.,,
All the commissions structures
were made upon the management of
tho New Haven system under former
President Mellen. In justice to the
present management the commission
says 1t Is butifairI 70 say that. Chair
man Elliott and w. Hines, special
counsel; "have co=operated with the
commission and rendered substantial
assistance throughout thisfinvestiga7
ton. ,.tSI!, ( y
= TheAreport sights the Significant
2 marked features and sig
.nificent incidents ihithe loose OK tray-
Eagance and simproyident administra-
tion of the finances of the New Ha-
ven as shown in this Investigation,
of the Boston and Maine Despoli-
ment; the yinequity Of the West, Ches-
ter Acquisition; the double price paid
for the Rhode Island trolley; the
wrecklessness in. the purchase OF
Connecticut. and Massachusetts, troll
leys at prices exhorbitantly in excess
of their market value; the unwar:
Franted expenditure of large amounts
in educating public opinion; the dis
position without the knowledge Of
directors; ofEhundreds OF; thousands Of
dollars for influencing public senti-
ment; the habituait payment of unite
mized vouchers dwitnout any cleai!
specification of details; the confuss
ing inter-relationa of THE principal
company and its subsidiaries and
consequent complication Of accounts
Ethelpraetices of financial ilegerdemain
in issuing largo blocks of New Ha-
ven stocks for notes;of! the New EngT
land Navigation Coal Co and ma!
|nipulating the securities back and
forth; fictitious sales Of New Haven
stock to friendly parties with the de-
Sign OF boosting the stock and I'M
loading on the public atGthe higher
market price, the unlawful diver
sion Of corporate funds to political
ORGANIZATIONS; the scattering Of re-
jtainers to attorneys Of five states,
who rendered no itemized bill for SER
vices and who conducted no slitiga-
itionSt to which the railroad was a par
ty; extensive use of a paid lobby in
the matters as toiwhiehJ the directors
claim to have no Information; the
attempt to control utterances of the
press by substituting reporters: pay
ment OF money on the profligates IS
sue Of free passes TO egislatuTes and
their friends; the Investment oil
in securities OF "a New Eng
land newspaper; the regular employ
ment Of political bosses in Rhode
Island and other states not for the
purpose OF having them perform anyII
service but to prevent them; tie res
tention Of John lizard of1nore than
$1,000. 900 in a Transaction in (which
he represented the New Haven and
into which, he invested not a dollar:
the inability Of oakleigh Thorne toA
for 50 100000 Of the funds
cfSthe New Haven en- trustedl TO hin, In
CARRYING out the. West Chester prop
osition.
The report also says that other fea-
lures We're "the domination OF all the
affairs Of this railroad by Mr.. Nor
gan and Mr. Mellen and the absolute
lsubordination Of other members of
the board Of directors to the viii of
these two. the unwarranted increase
Of the New Haven liabilities from
ssa.eoo. 600 Id 1903 to SAT- 900. coo
in 1913; the increase IN floating
notes from nothing In 1903 to ap-
Iproximateiy $4,000. 900 In 1913:
the irresponsible standard business
assets aud the absence of financial
acumen displayed by, eminent finan-