The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1914-07-14

| specification Of details; the confusing
| INTERPRETATION of the principal COM
| pany and its subsidiaries and conse-
| quent complication Of accounts: the
| practice of financial legerdemain in
issuing large blocks of New Haven
| stocks for notes Of the New England
Navigation Company and manipulate
ing these securities back and forth;
| fictitious sales of New Haven stock to
friendly parties with the design of
boosting the stock and unloading on
the public at the higher market
price; the unlawful diversion Of cor
porate funds to political organizations;
the scattering of retainers to attor-
neys of five states who rendered no
itemiZed bills for services and who
conducted no litigation to which the
railroad was a party; extensive use of
paid lobby in the matters as to
which the directors claim to have no
information; in the attempt to con-
troll utterances of the press by sub
Sliding reporters; payment of money
and the profilgate issue of free passes
to legislators and their friends: the
investment of 100000 in securities OF
Il New England newspaper; the regu-
lar employment CT political bosses in
Rhode Island and other states to pre-
vent them as MIR. Mellen expressed it,
from becoming active on the other
side the retention by John L. Billiard
of more than $2,700, 900 in a transac-
tlon in the inability of Oakleigh
Thorne to account for $1.032,000 Of the
New Haven funds intrusted to him in
carrying out the Westchester PROPOSE
ton; the story. Of Mr.. Mellen as to
distribution of S1,200,000 for corrupt
purposes in bringing about amend
nCnts of the Westchester and Port
Chester franchises; the domination OF
all this railroads affairs by Mr.. Nor
gan and MIR. MeIIen and the absolute
subcrdinatiOn Of other members of the
board of directors to the will of these
Two. the unwarranted increase of the
New Haven liabilities from $93, 600, 900
IN 1908, to $417.000, 600 in 1918: the in
crease in floating notes from nothing
in 1868 to approximately $4,000, 900 in
1913; the indefensible standard of bus
mess ethics and the absence of fl
nancial acumen displayed by emil
nent financiers in directing the des- |
tines Of this railroad in its attempt to
esta blish a monopoly of the tranSpOr-
tatior OF New England. The combi- |
nation of all these has resulted in the |
present deplorabIe situation in which |
the affairs of this railroad are in |
volved." |
CAN RECOVER SAME.
From the facts developed in this in
vesti6ation it would seem that there |
is little question: in the commissions |
opinion, conceI ming the recovery of a |
substantial amount of the stockholders |
money that has been wasted. Several |
items OF this nature have been brief |
~ summarizes:
over paid Perry. and Thorne in
commissions $303,7
illegally spent, in obtaining Wes.
Chester Franchise changes S1,524,072.
In tha Billiard transa ction s2,748, 100.
THE money with which Billiard dc-
quired the 1876 additional shares of |
cor anon stock and 1926 shares of pre-
ferred stock of the Boston & Maine
Railroad Company was furnished by
the New England Navigation Com
pany. This stock was turned back to
the Navigation Company for $3.50,
0S2. 1t would seem that a suit by
stockholders for the recovery of the
profit which is justly due the navi-
cation company, # any. was made by
Billiard in the transactions involving
these additional shares, could be main
tanned.
"If any expenditures were made in
violation of the antitrust laws of the
lures ultra wires and is it not the 1e-
gal obligation of the directors to sat
isfy out of their own fortunes any loss
which results to the company?
'DireC ors cannot without account
ability deplete corporate treasury in
which are in violation Of the
laws.
'In Investigations the commission is
to make, it has, in accordance
" it'll its usual custom, exercised due
!
witnesses where immunity might re-
suit, except when it is necessary in
order to get at the truth. In carrying
put the instructions of the senate i'm
this case, the commission has kept
in mind the warning of the depart |
nent of justice to carefully consider
before placing Il witness on the stand, !
the effect his testimony might have
n the way of immunizing him from
criminal prosecution.
to Nv all on
president of the New Haven system. | {
t was the commissions behalf that s
1iS testimony was necessary in TINS !
Investigation and the result, in our
opinion fully justifies this position.
The commission has proceeded up :
IN the idea that 1t is better to expose I
wrong doing, even if in doing it
would be necessary to use a few wit
lesses whose testimony might bring
hem immunity, than, through fear of
'estoWing it Oh some. leave facts I'M
Known ana uncovered and thereby
i've immunity to all.
This vestigation has demon
trated that the monopoly theory of 4
hose controlling the New Haven was
1T sound and mischievOus in it's eff
eCtS. To achieve such monopoly
meant reckless and scandalouS eXpen
liture Of money; 1t meant the attempt
o control public opinion; corruption {
# government; the attempt to per- ,
utions of people in insolent defiance
# law. Through exposure of the
Of this monopoly the inyls-
BILE government, which has gone far
n it's efforts to dominate New Eng
and has been made visible. 1t has
zen clearly proven how public opin-
on was distorted; how officials who
ould be bought were bought how
that could subsidized were
ubsldized; how a college professor
nd puhlicies secretly accepted money
rom the New England while masking
s representatives of a great Ameri- l
an University and the guardians OF !
he interests of the people; how .
eenCIeS of information to the public