Northern Wisconsin advertiser. [volume] (Wabeno, Wis.) 1898-1925, 1914-07-17
90 MILLION STOLEN
US. B0DY'S CHARGE:
Commerce Commission Bares
Loot of Eastern Road.
BLAME PUT ON DIRECTORS
Federal Body Calls Financing One OF
Most GIaring Instances of Malad-
miniatration In History of
Nations RallroadinQ.

most glazing instances of maladminis-
tration revealed in all the. history OF
American railroading," is the inter-
state commerce commissions charac-
terization of its findings in the inves-
tigators of New Haven railroad finan-
cial affairs, reported to the senate
Monday.
In report of 10000 words, prob
ably the most drastic in terms OF any
ever made by the commission, the
| New Ravens directors were pro-
nounced "cri1ninally negligent"
Evidence pointing to violation >of
law has been transmitted to district
attorneys in Massachusetts, Rhode Is
land and New York, and the federal
department OF Justice
The report, moreover, will be made
the basis of proceedings by stock
holders to recover millions Of dollars
alleged to have been wasted by the
management.
"A reasonable estimate of the loss
to the New Haven by reason of waste
and Encouragement" says the report,
will amount to between sixty and
| ninety million dollars. Directors
should be made individually liable to
civil and criminal laws for the man.
ner In which they discharge their
! trust"
| All the commissions structures
New Haven system under former Pres
ident Mellen.
The report cites these significant
| Incidents:
| Marked features and significant in
cidents in the loose, extravagsnt and
frnprovident administration of the
! finances of the New Haven. as shown
In this investigation, are:
Boston & Maine despoilment
Inequity of the West Chester acquisi-
ton.
Recklessness in the purchase of Con-
necticut and Massachusetts trolleys
at prices exorbitantly in excess Of
their market value.
Unwarranted expenditure Of large
amounts in educating public opin-
ion."
Disposition, without knowledge of the
directors, of hundreds of thousands
of dollars for influencing public
sentiment.
Fictitious sales of New Haven stock
to friendly parties with the design
of boosting the stock and unload
ing on the public at the higher
market price"
Unlawful diversion of corporate funds
to political organizations.
Attempt to control utterances of the
press by substituting reporters
Payment of money and the profligate
issue of free passes to legislators
and their friends.
Investment of 100000 in securities of
a New England newspaper.
Regular employment of political bosses
in Rhode Island and other states, not
for the purpose of having them per-
form any service but to prevent
them, as Mr.. Mellen expresses it.
from becoming active on the other
side"
Retention by John L. Billiard of more
than $2,70O,000 in transaction in
which he represented the New Ha-
ven and in which he invested not a
dollar
Inability Of Oakleigh Thorne to ac-
count for S1,032.000 of the funds of
the New Haven intrusted to him In
carrying out of the West Chester
proposition.
Story of Mr.. Mellen as to the distribu-
ton of $1.200,000 for corrupt pur-
poses in bringing about amendments
of the West Chester and Port Chester
franchises.
railroad by Mr.. Morgan and Mr.. Mel
len, and the absolute subordinat1oIi
OF other members of the board of d.
rectors to the will of these two.
Unwarranted increase of the New Ha-
ven liabilities from S93.000,000 in
1903 to SALT 100000 in 1913.
| Increase in floating notes from moth
100000 in 1913.
mdefensible standard of business eth
les and the absence of financial acu-
men displayed by eminent financiers
in directing the destinies of this
railroad in it's attempt to establish
monopoly of the transportation of
New England.
"A combination of all these has re-
suited in the present deplorable situa-
ton in which the affairs of this rail-
road are involved" says the report