New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-07-14

of this corporation over the whole
transportation field in New England
"If these directors who were faithless
TO their stewardship were held respOn-
sible in the courts and at the bar Of
public opinion for the failure to do
those things they should have done. the
lesson to directors who do not direct
would be very salutary.
Directors Derelct.
"Most Of the directors OF the New
Haven accepted their responsibilities
lightly. They failed to realize that
their names gave confidence TO the pub
lie and that their connection with the
corporation led the public to invest.
When these directors were negigc! I
and serious losses resulted therefrom
they were guilty Of grave derelicuon
Of duty and a breach of trust that Vas
morally wrong and criminal IN ITS
fruits.
"Directors should be made indlvid-
ually liable TO civil and criminal laws
for the manner in which they DIS
charge their trust. A corporation can
be no better or worse than those who
operate IT, Il should be lust as grave
a crime to plumber stockholders or the
public through railroad corporation
as il is 20 personally rob an individual
ain attempting TO estimate the losses
Of the New Haven stockholders the
three large items of loss with which
we are cor fronted are those arising OUT
Of the acquisition of the Boston Il
Maine stock. the New York. Westches-
ter e. Boston stock and the Rhode ISL
and trolleys. A summary of the losses
is as follows:
Boston g. Maine. s23,223,725 GS.
"Now York. Westchestcr d Boston,
fl1.457156 %.
"Hartford & Worcester Street Rail
way. S73.29i %.
"SpriarGeld Railway Companies,
S2O3.221 H..
Worcester Consolidated Street Rail
way. SO. 500.
"Worcester & Southbridge Street
Railway, S15,5S0.
"Connccticut Company. $40 .535, $50 Of.
"Ehodc Island Company, SlS.352,-
336 II.
Total, S65,s7l .299 81.
There was loss IN the recent sale
Of the New Haven interests IN the
Merchants and Miners Steamship Com
panv Of S3.59l,5Oo.
From all Of the foregoing and from
careful consideration of the method
IN which expenditures not specified
herein have been made. it is submitted
that a reasonable estimate of the loss
10 the New York. New Haven e. Hart
ford Railroad Company by reason Of
waste and mismanagemen will amount
90 between S6O,OOO.000 and S90,000,0 0o.
Drain for Years TO Come.
The splendid property Of the New
Haven Railroad itself will be called
upon for many year TO make up the
drain mon it, resources resulting
rom the unpardorablc folly of the
transactions outside the proper field
i'm which stockholders supposed their
moreys were invested.
But honesty and efficiency OF man,
agement of this property as 2 railroad
ONLY will undoubtedly in time restore
its former standing.
81 was found in the investigation OF
the New Haven system that there were
1876 subsidiary corporations. and the
books Of ,he New Haven road proper
reflect only a small part of the aetna
financial transactions of the railroad.
Many Of these subsidiary corporations
served no purpose save an evil one.
They were used 10 cover up tranSac-
lions that would not bear scrutiny and
70 keep from the eyes Of public OH
cials matters that were sought TO be
kept secret.
The commission should have the