New Britain herald., 1914-07-13
Road Directors Held
 <'C1im1in1lly Vegligent"
Drastic Reb0rf 0f Interstate Commerce Commission Scores Former Manage
 menf 0f New Haven System.

these has resulted in the present de plorable situation in which the af fairs of this railroad are involved Stockholders May Recover Money From the facts developed in thi. invest1ga tion it would seem tha, there is little question concerning the recovery of substantial amount o1 the stockholders money that has been wasted. Several items of this nature will be briefly summarized:
 Overpaid Perry and Thorne in com missions, $303.750.
 illegally spent in obtaining West chester franchise changes, $1,524,- O72.77.
 Billiard Transaction, $2,748, zoo.
 ..'In the Billiard transaction, $2,74S,- 10000.
 "The money with which Billiard ac- quired the 15,755 additional shares oi common stock and 5,S26 shares of preferred stock of the Boston ana Maine Railroad company was fur nished by the New England Naviga- tion company. This stock was turned back to the Navigation company for $3,370,082. It would seem that a suit by stockholders for the recovery of the profit which is justly due the Navigation company, if any was made by Billiard in the transactions involv- ing these additional shares, could be maintained.
 'If any expenditures were made in violation of the antitrust laws Of the United States, are not such ex- penditures ultra wires and is it not the legal obligation of the directors to satisfy out of their own fortunes any loss which results to the com pany?
 All Pertinent Questions.
 These are all pertinent questions in the light of the developments brought about by this investigation.
 "Only lawful expenditures are au- thorized.
 "All illegal disbursements are ultra wires.
 Directors cannot without account ability deplete a corporate treasury in ventures which are in violation o1 the laws of the land.
 ''1n the investigations the commits sion is required to make from time to time, it has in accordance with it's usual custom, exercised due caution not to require the testimony of witt nesses where immunity might result except where it is necessary to get at the truth.
 Mellen's Testimony Necessary.
 With respect to Mr. Mellen, form CT president of the New Haven sys- tenn it was the belief of the commits sion that his testimony was necessary in the investigation, and the result, in our opinion, fully justifies this posi- tion.
 Evidence of wrong doing such as was disclosed in this hearing is dif1- cult to obtain. Men do not conduct such transactions in the open, but rather in secret and in the dark.
 The commission has proceeded upon the idea that it is better to ex- pose wrongdoing than, through fear of bestowing immunity on some, leave facts unknown and uncovered and thereby give immunity to all.
 Monopoly Theory Unsound.
 ''This investigation has demon strated that the monopoly theory o1 those controlling the New Haven was unsound and mischievous in it's ef- fects. To achieve such monopoly meant the reckless and scandalous of money; it meant the attempt to control public opinion, corporation of government, the ar- tempt to pervert the political and eco- homie instincts of the people in inso- ent defiance of law Agencies of in- to the public were prosti- .uted wherever they could be prost1- .uted in order to carry out a scheme of private transportation monopoly imperial in its scope.
 Tt is inconceivable that these wrongs could have gone on without interference if the members of the board of directors had been true to he faith they owed the stockh elders. number of directors appear in many instances to have voted without and to have approved the of many millions without The directors or passively acquiesced in he efforts of the Mellen- Morgan Rockefeller regime to extend the domination of this corporation over he whole transportation field in New 1 England.
 Lesson Would Be Salutary.
 "If these directors who were | aithless to their stewardship were l leld responsible in the courts and at l he bar. of public opinion for the fail- 1 Ire to do those things they should | rave done, the lesson to directors who To not direct would be very salutary l
 Most of the directors of the New Haven accepted their responsibilities tightly. They failed to realize that heir names gave confidence to the l public.
 Directors should be made indi- yidually liable to civil and criminal avs for the manner in which they discharge their trust.
 Three large Losses