Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-07-14
TUESDAY EVENING, JULY il, 1914
NEW HAvEN,s soRRowFUL STORY.
LANES SMITH. JR.
FOUNDED MARCH l. 1882.

The case of the New Haven management, marvel
Gus as it is as clearly revealed by the report of the
Interstate Commerce Commission, is unfortunately,
not an exceptional one as the exposure of the Frisco
and other recent revelations attest. And in this
port the public may see the principal for the
depression of prices in the stock market
There is also revealed by the report the reason
for the chorus of demands by newspapers under rail-
road control that the government should forthwith
cease prosecuting transportation interests and drop
all further investigations The list of directors upon
whom the commission charges responsibility indicates
the individuals who felt they under persecution
The story of the wreck of the New Haven
told by Melen and others before the commissions
report and the principal facts fairly well known
TO the public 1t is now put into cold official re-
port and as such it is the dramatic recital OF
public robbery ever made officially. 1t wildly por
trays of the greatest financial crimes of the cen
fury 1t is shock to the conscience of the nation.
1t is said that among the New Haven stockholders
are so 600 women and children. They trusted i'm
plicty to the men who managed the property out of
which they got their income. They did not know that
their investments being thimble-rigged to make
colossal fortunes for few men. They could not be-
eve that turpitude existed in the directorate of
great railroad corporation.
And again, the nation be congratulated upon
having Federal board like the Interstate Commerce
Commission, winch, lnSenSlDle 10 powerful
and even threatened and in disregard of the depart
ment of Justice itself prosecuted its investigation pitt
1essy and submitted this astounding report to Con-
gress. 1t is for the government to say whether
there is punishment for such crime aud restitu
tion of millions taken from the New Haven in de-
hance of the law and in utter disregard of honesty,
decency and honor.
Some idea of the magnitude of the operations,
or to more properly term them, "depredations of
the managers of the New Haven and of the enormous
sums of money taken from the pockets of the stock
holders and wasted and squandered may be CLEANED
from the following brief summary of discoveries
by the Commerce Commission: Boston & Maine
despoment; inequity of the Westchester acqusition
double price paid for the Rhode Island troleys; reck
essness in the purchase of Connecticut and Massachu
sets troleys prices exorbtanty in of their
market value; disposition of hundreds of thousands
Of dollars for influencing public sentiment; habitual
payment of uniemized vouchers without specification
of details; practise of financial trickery in issuing
large blocks of New Haven stock for notes of the
New England Navigation Company and juggling these
securities fake sales Haven stock friendly
parties the purpose of boosting the stock and
loading on the public at the higher market price;
scattering of retainers to attorneys of five States
who rendered no temized bills for services and who
conducted litigation to which the railroad was
party; retention of paid lobby; payment of money
and ndiscrimnate of free passes to Legislators
ties of New England newspaper; regular employ
ment of political bosses in Rhode Island and other
States retain their friendship retention by John
Billiard of more than $270O,000 in a transaction in
which he invested dollar; inability of Oakleigh
Thorne to account 900 of the funds of the
New Haven; distribution of $1,20O,O0O for corrupt
purposes; unjustifed increase of the New Haven
liabilities from $93,OOOO 900 in 1903 to $417 900 900
in 1918; increase in floating notes from nothing in
1903 to approximately $4,000 600 in 1919
Whether there is to be any recovery by the stock
holders the New Haven from the directors of the
millions misspent in the management of the road is
doubtful The contemplated suit names $125 900 900
as the total claim, but what the stockholders really
want is the difference between the real value of prop
critics acquired and the amount paid and this differ
ence is about $94, 600 900.
Evidently there will be voluntary restitution,
although there are men among the New Haven direc-
tors during the Meen regime who could make the