Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1914-07-17
80 MILLION STOLEN
COMMERCE COM
MISSION BAREs LOOT OF NEW
HAVEN ROAD.
BLAME PUT ON DIRECTORS
Federal Body Calls Financing of East
ern Railway One of the Most Glar-
! ing Instances Of INSTRUMENTATION
In History of Nations RaiIroading.

In History of Nations RaiIroadIng.
Washington, July 15.-"One of the
most glazing instances of maladmin1s-
itration revealed in all the history OF
American railroading," is the inter
state commerce commission chara~
terization of its findings in the inves-
LEGATIONS of New Haven railroad f1nan-
cial affairs, reported to the senate on
Monday.
In a report of 10000 words, prob
ably the most drastic in terms of any
ever made by the commission, the
New Ravens directors were pro-
fnounced "criminally negligent"
Evidence pointing to violation of
law has been transmitted to district
attorneys in Massachusetts, Rhode Is
land and New York, and the federal
department of justice.
The report, moreover, will be made
the basis of proceedings by stock
holders to recover millions Of dollars
ialleged to have been wasted by the
management.
"a reasonable estimate of the loss
to the New Haven by reason of waste
and mismanagement," says the report,
will amount to between sixty and
ninety million dollars. Directors
should be made individually liable to
civil and criminal laws for the man
ner in which they discharge their
trust"
All the commissions structures
were upon the management of the
New Haven system under former Pres
ident Mellen.
The report cites these significant
incidents:
Marked features and significant in
cidents in the loose, extravagant and
improvident administration of the
finances of the New Haven, as shown
lin this investigation, are.
Boston e Maine despoilment.
Inequity Of the West Chester acquisi-
ton.
Recklessness in the purchase of Con-
necticut and Massachusetts trolleys
at prices exorbitantly in excess of
their market value.
Unwarranted expenditure of large
amounts in educating public opin-
ion."
Disposition, without knowledge of the
directors, of hundreds of thousands
of dollars for influencing public
sentiment.
Fictitious sales of New Haven stock
to friendly parties with the design
. of boosting the stocks and unload
ing on the public at the higher
market price"
Unlawful diversion of corporate funds
to political organizations.
Extensive use of paid lobby in the
matters as to which the directors
claim to have no information.
Attempt to control utterances of the
press by substituting reporters.
Payment of money and the prof1igate
issue of free passes to legislators
and their friends.
Investment of 100000 in securities of
a New England newspaper.
Regular employment of political bosses
in Rhode Island and other states, not
for the purpose of having them per-
form any service but to prevent
them. as Mr. Mellen expresses it,
from becoming active on the other
side"
Retention by John L. Billiard of more
than $2,700,000 in a transaction in
which he represented the New Ha-
ven and in which he invested not a
dollar
Inability of Oakleigh Thorne to ac-
count for $1.O32, 900 of the funds of
the New Haven intrusted to him in
carrying out of the West Chester
proposition.
Story of Mr. Mellen as to the distribu-
ton of $1,200,000 for corrupt pur-
poses in bringing about amendments
of the West Chester and Port Chester
franchises.
Domination of all the affairs of this
railroad by Mr.. Morgan and Mr.. Mel
len. and the absolute subordination
of other members of the board of di-
rectors to the will of these two.
Unwarranted increase of the New Ha-
ven liabilities from $93,000,000 in
1908 to SAT-, 100000 in 1913.
Increase in floating notes from moth
ing in 1903 to approximately $40,-
100000 in 1918.
Indefensible standard of business eth
les and the absence of financial acu-
men displayed by eminent financiers
in directing the destinies of the
railroad in its attempt to establish
a monopoly of the transportation of
New England.
"A combination of all these has re-
suited in the present deplorable situa-
ton in which the affairs of this rail-
road are involved" says the report.
Auto Turns Turtle; One Dead.
, Paxton, Ill.,, July 15.-Myron Day is
dead and four members of his family