The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1914-07-22

1903 to SALT, 100000 in 1918; the
increase in floating notes from moth
ing in 1908 to approximately s40,>
100000 in 1918; the indefensible
standard of business ethics and the
absence of fnanciers in directing the
destinies of this railroad in the at
tempt to establish a monopoly of the
transportation of the 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
investigation it would seem that there
is little question concerning the re-
covery of substantial amount of the
stockholders money that has been
wasted. Several items of this nature
will be briefly summarized:
"Overpaid Perry and Thorne in
commissions, s303,750.
illegally spent in obtaining West
chester franchise changes, s1,524,-
o72.77.
elm the Billiard transaction, 81
74S,700.
"In attempting to estimate the
losses of the New Haven stockhold-
ers the three large items of loss with
which we are confronted are those
arising out of the acquisition of the
Boston & Maine stock, the New York
Westchester & Boston stock, and the
Rhode Island trolleys.
ga summary Of the losses is as fol
lows:
Boston & Maine, s23,223,725.6S
.sNew York, Westchester & Boston
ls11,457,156.os.
Hartford & Worcester Street rail
way, S7S,394.27.
Springfield Railway company
s203,221.15.
worcester & South Bridge Stree
railway. s15,5so.
Connecticut company, S12,535,
I3S6.o1.
.'Rhode Island company, S1S,352,
i3ss.41.
s'Total, s65,s71, ,299.61.
ssThere was loss in the Tecen
sale Of the New Haven interests il
the Merchants & Miners Steamship
company of s3,594,500.
"It was found N the investigation
of the New Haven system that :ther'
were 336 subsidiary corporations
Many Of these subsidiary corporation
served no purpose save an evil one
They were used to cover up transac
ltions that would not bear scrutin.
land to keep from the eyes of puoii
officials matters that were sought t.
be Kept secret"
It is pointed out that the capital
lzation of the New Haven system wa
increased from ss3,0O0,0oo to s417,
100000 since June 80. 1903. Thi
was exclusive of stock premiums
making an increase Of s324,000,000
"Of this increase" says the com
iission, approximately S120,000,oo'
was devoted to it's railroad propert,
and was expended for betterment ant
equipment.
"This leaves the sum of 100000,
1000, which was expended for opera
tions outside of its railroad sphere
Through the expenditure Of this sun
this railroad system has PRACTICAL,
Imonopolized the freight and passen
ger business in five Of the states o
the Union. 1t has acquired q mon
opoly Of competing steamship line
and trolley systems in the section il
which it serves
| The frequency with which DUNN,
corporations and dummy director
appear in this report" concludes tn
report, "leads to the conclusion tha
some one high in the counsels of tn
New Haven had an obsession upol
the subject of the utility Of sscl
sham methods. Why men of respect
ability and standing as these appea
to be should lend their names a
dummies passes comprehension.
"Thus, throughout the entire stor.
Of deception, the New Haven man
agement vainly endeavored to hid
the true facts behind these DUNN.
individuals and dummy corporations
No condemnation can be too sever
to apply to the frequent. use of thes
companies by the New Haven"