The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1914-07-14
SCORE DIRECTORS
AS PROFL|G
AND CRIMINAL
Scaihlng interstate Commerce
Report on New Haven Co.
STOCKHOLDERS BIG LOSS
Billiard Transaction Denounced as a
Fraud and Suits to Recover
Advised

WahniuSlOil, July l5.-ln one oil the
hardest reports ever handed down by
a government bureau, the interstate
commerce commission today held the
directors of the old management of
the New Haven railroad criminally
negligent and subject to prosecution
under the Sherman antitrust laws.
The commission has put the matter
OF criminal proceedings up to Attor-
ney General McReynolds by referring
to him complete record Of the testi-
mony taken before the commission.
The commission also has called the at
tentlon of District Attorney Whit
man of New York and the prosecut-
ing officials in Massachusetts and
Rhode Island to possible violations of
state laws.
The commission estimates that be-
tween $7O,OOO,OOO and $9O,OOO,OOO has
been lost to the New Haven stock
holders through waste and impair
ment OF values under the old manage
ment. 1t expresses the opinion that
part, at least, of this amount should
be recovered from the individual d.
rectors and others.
"The result of our research into
the financial workings of the former
management of the New Haven sys-
tem," says the report, has been to
disclose one of the most glazing in.
stances or mala-administration reveal
ed in all the history of American rail
roads,"
The commission finds that the late
j. p. Morgan and Charles S. Mellen do
inmate the affairs of the New Haven
road and that the other members OF
the board of directors subordinated
themselves to the will of these two
The commission refers repeatedly,
however, to the New Haven director
ate and officers as the "Mellen-Mor-
gan-Rockefeller management"
1T is inconceivable that these
wrongs could have gone on without
Interference If the members of the
board of directors had been true To
the faith they owed the stockholders
A number of directors appear in
many cases TO have voted without
knowledge and to have approved the
expenditures of many millions with
out Information. According to testi
mony they merely approved what haC
been done by some committees or by
some officer of the company
The commission characterizes tn,
New Haven monopoly as thorough,
corrupt. II says:
This investigation has demonstrat
ed that the monopoly theory OF thos,
controlling the New Haven was un
sound and mischievous in its effects
To achieve such monopoly meant tn,
reckless and scandalous acceptanc,
OF money; it meant the attempt t,
control public opinion: corruption o
government; the attempt to perver
the political and economic instincts o
the people; insolent defiance of law
Through exposure OF the methods o
this monopoly the invisible govern
ment which has gone far in its effort
TO dominate New England has beef
made visible. II has been clearl,
proved how public opinion was dis
torted; how officials who we're need
ed and who could be bought wer
bought; how newspapers that coul,
be subsidized were subsidized; no,
a college professor and publicists So
cretely accepted money from the Ne,
Haven while masking as a represent
tive OF great American universit
and as the guardians Of the interest
OF the people; how agencies of info
nation to the public we're prostitute
wherever they could be prostitute
in order to carry out a scheme of DIT
waite transportation monopoly impel
ial in its scope"
The report contains one bright ra
however, for the future. Il says
THE splendid property of the Me-
Haven railroad itself will be Gale
upon for many a year to make up IN
drain upon its resources owing to IN
objectionable folly OF the transar
tons outside the proper field in whic
its stockholders supposed their MOI
ey was invested. But honesty and e
ficiency OF management OF this pro
ehty. by the railroad only. will nj
doubtedly in time restore its fOrms
standing"