Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1914-07-13


most glaring instances Of maladmini-
stration revealed in all the history Of
American railroading" is the Interstate
commerce commissions characterize
ton Of its findings into the investiga-
ton Of New Haven railroad financial
afYairs, reported today to the senate.
In report Of 10000 words. probably
the most drastic in terms of any ever
made by the commission, the New
Haven's directors were pronounced
scriminally negligent" Evidence point
Ing to violations of law has been trans
! mitted to district attorneys in Massa-
chusetts, Rhode Island and New York
and the federal department of justice.
Msilen's Administration Scored.
All the commissions structures were
pn the management Of the New Haven
system under former President Mellen.
Justice to the present management.
he commission says it is but fair to say
That Chairman Howard Eliot and
NkValter D. Hines. special counsel. "have
ko-operated with the commission and
Rendered It substantial assistance thru
khis investigation
Significant Incidents.
The court cites these Significant In
cidente:"
! Marked features In the loose ex-
EserAvasance and improvident admins
ffstration of, the New Haven - shown in
this@ invesfieAtion are the Boston q
NatnG Gdssnoalunent. ~
iniatlty of the westchester
lcquisition. {; =.
THE double price paid for the Rhode
Island trolleyS.
The recklessuess in the purchase of
Connecticut and Massachusetts trolleys
at prices exorbitantly in excess Of their
market value.
"The disposition Of knowledge Of the
directors Of hundreds of thousands for
influencing public sentiment.
The habitual payment Of unitemized
vouchers without any clear specif1ca-
tions Of detail; the confusing inter-
relation Of the principal company and
its subsidiaries and consequent compli-
cation Of accounts.
1.-THE practice Of financial legerde-
main in issuing large blocks of New
Haven stock for notes of the New
Hngland Company. and manipulating
The securities back and forth.
Fictitious sales Of New Haven stock
riendly parties with the design of
ing the stock and unloading on
-'olic at the higher market price
nlawful dtverging Of corporate
political organizations.
~nsive use Of a paid lobby in the
y t.ers as to which the directors claim
t. nave no intention.
THE matters Of control Of utterance
IF the press by subsidizing reporters.
Payment Of money and the pronigate
issue Of free passes to legislators and
their friends.
The investment Of $4,000 in securi-
ties Of New England newspaper.
The regular employment of political
hosses in Rhode Island and in other
states. not for the purpose Of having
them perform any service. but to pre-
vent them. az Mr.. Mellen expresses it,
from becoming active on the other
side
"The retention Of John L. Billiard for
! more than e2.700.000 in transaction in
which he represented the New Haven
\ and into which he invested not dollar.
"The inability Of Oakleigh Thorne to
account for $1,0s2,00O Of the funds of
the New Haven entrusted to him in
! carrying out the Westchester PROPOSE
= tion.
'.The story Of Mr.. Mellen as to the dis
tribution Of $1.260.00O for corrupt pur-
poses In bringing about amendments Of
the Westchester and Portchester fran.
chises.
The domination Of all the affairs of
this railroad by Mr.. Morgan and Mr..
Mellen ana the absolute subordination
Of the other members Of the board of
directors to these two.
THE Ynwarranted increase Of the
New Haven liabilities from $e3, 900. 900
in 1905 to $417. 200, 900 in 1918.
The increase In floating notes from
nothing In 1908, to approximately $40
100000 In 1918.
The indefensible standard of busi-
ness ethics and the absence of finan.
ctal acumen displayed by eminent finan-
ciers In directing the destinies Of this
railroad in its attempt to establish a
monopoly Of transportation in New
England.
"A combination Of these has resulted
In the present deplorable situation.
Money Might BE Recovered.
From the facts developed IL would
seem there Is little question concerning
the recovering OF substantial amount
OF the stockholders' money that has
been wasted. Several items of this
nature are:
"Overpaid Perry and Thorne. in COM
missions, &Sos. .760..
.Illssaliy spent in obtaining West
cheeter fraMchise changes. $5ie,S70z. II
- ~ Rlllasd transactipn. ss.74s.7oo.