The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1914-02-14
TELLS0FNEW HAVEN DEAL
Tavenner Relates History Of Railroad
Affair And Says All Connected
With It Are Guilty Of Crime
NEW LAWS ARE FAVORED

Washington February 14-When
the president of a bank defaults and
the authorities come in and close the
bank, often bringing about the ruin
of the innocent depositors in the in
stitution, no one attempts to create
public opinion against the author
titles for enforcing the law. But
when there is a agitation against
financial malpractice in railroad af-
fairs, at once there are sleek coated
gentlemen to rise up and denounce
as demagogue those who demand the
punishment of the rich malefactors.
No such cutlery, however can save
the financial pirates who looted the
New Haven Railroad from a full ex-
posture of their mfsdeeds and from
probable punishment.
The Bible puts in a special class
those who rob widows and orphans.
Those who lost through J. P. Nor
CAMS jugglery of the New -Haven's
finances were the railroads stock
holders. They have lost heavily.
Senator .Lippitt, of Rhode Island,
told the Senate that $4,000 of the
New Ravens stockholders are either
widows or estates belonging to or
phans and fatherless children.
The firm of J. p Morgan & Co.
stands accused of footing this road
to the tune of millions. No such
scaly financing has been brought to
light since the insurance investiga-
tons, The firm has not yet denied
the accusations, or has it taken le-
gal steps against the New York
newspaper which printed these
charges. Now Senator Norris of Ne
braska, has repeated the charges in
the Senate, which has adopted the
Norris resolution instructing the In
terstate Commerce Commission to
continue it's Investigation into these
financial TRANSACTIONS.
The commission made an incom-
plete investigation and an incom-
plete report. 1t reported that some
$12,OOO,000, belonging to the stock
holders of the railroad and used in
the acquiring of the Westchester
branch apparently vanished into
thin air." The Commission is now
instructed to go ahead into this
chin air" and find the thieves.
Senator Norris has repeated in the
Senate the charges that this $12,-
100000 vanished into the Golfers of
J. P. Morgan & Co., and that the
job was done by lending money of
the New Haven, almost without Sc
curity, to a dummy corporation or
gained for the purpose, and by TAX
ing out extravagant commissions"
On June 80, 1910, the New Haven
(through Morgan, its fiscal AGENT
had paid over $21,000,0O0 for the
Westchester property, which was
then worth slightly over $12,000,-
900.
The Morgans know exactly what
they were doing. They had the best
of corporation lawyers to advise
them. 1t now develops that in loot
ing the widows and orphans they vi
olated not a single federal law. I'm
der state laws they might be prose
cuted, but state administrations,
only too liable to be controlled by
such a corporation as the New Ha-
ven, have taken no steps.
A poor man, guilty of thievery not
half so reprehensible as those fin
ancial transactions, would have been
sent over the road for a long stretch.
The Morgans eluded the criminal
statutes. Is there any additional
argument needed to support Woodrow
Wilson'S plan for federal regulation
of railroad finances? If the law
which the President advocates were
on the statute books today, every
living man connected with this New
Haven affair would go to the peni-
Tertiary.