The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1914-07-13
NEW HAVEN r. ABROAD
DIRECTORS CENSURED
BY THE COMMISSION
BY Interstate Commerce Com.
mission in Most Drastic Re-
L port 1t Ever Made.
MANY MILLION DOLLARS.
Are Lost by Maladrninistration
and Evidence is Sent to Sew
eral District Attorneys.
q, ..soe,.,rp ,,rso

A8e0GtATBo
(: WASHINGTON. July 13.-"One Of
the most glazing instances Of NAL
administration revealed in all the
! history OF American railroading" is
the interstate Commerce Commits
sion's characterization Of its findings
| in the Investigation of New Haven
railroad financial affairs reported to-
! day to the Senate. In report of 3d.
| 900 words, probably the most drastic
lin terms of any ever made by the
/ commission, the New Haven's direc-
tors were pronounced "criminally
negligent" Evidence pointing to vio-
lation OF the raw has been transmit
ted to district attorneys in Massa-
ichusetts, Rhode Island and New
| York and the federal department Of
! Justice.
"a reasonable estimate Of the loss
to the New Haven by reason Of waste
and Encouragement" says the re-
port, will amount to between $780,
!. 100000 and SOC, 100000. Directors
! should be made individually liable to
civil and criminal laws for the man
! ner in which they discharged their
trust" All the commissions stric-
i lures were made upon the manage
! ment Of the New Haven system un-
! der former President Mellen. In
Justice to the present management
the commission says 1t Is but fair to
say that Chairman Elliott and w.
Hines, special counsel, have coop
Grated with the commission and rom
dered it substantial assistance
throughout this investigation" The
report cites these Significant Incl
dents:
Marked features and the significant
incidents in the loose extravagant and
improvident administration Of the f.
nances of the New Haven as shown
in this investigation are the Boston
and Maine despoilment; the inequiry
of the Westchester acquisition: the
double price paid for the Rhode Is
land trolley ;the recklessness IN the
purchase of Connecticut AMI Mass
achusetts at prices exorbitantly in ex-
cess OF their value: the unwarranted
expenditure OF large amounts in agi-
tating public opinion; the disposition
without knowledge OF the directors ot
hundreds Of thousands Of dollars for
influencing public sentiment; the hab-
itual payment of unitemized vouchers
without any clear specification OF de-
tail; the confusing INTERPOLATION Of
the principal company and its sub
salaries and consequent complication
of accounts; the practice OF financial
legerdemain in issuing large blocks
Of New Haven stock for notes Of the
New England Navigation Company and
manipulating the securities back and
forth; fictitious sales OF New Haven
stock to friendly parties with the de-
sign of boosting the stock and unload
ing on the public at the higher mar
ket price; the unlawful diversion of
cooperate funds to political organ
ization; the scattering Of retainers to
attorneys 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 matter as to which
the directors claim to have no infor-
nation; the attempt to control utter
ances Of the press by substituting re-
i porters; payment OF money and the
profligate issue OF free passes to leg
islators and their friends; the invest
\ ment Of 100000 in securities Of New
England newspaper; the regular en-
ployment Of political bosses in Rhode
Island and other states not for the
m