The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1914-07-14

books and papers 80 az TO get them
Que OF the way.
The Billiard company was used 20
take over some OF the ques tionable as
sets OF the New Haven and assets
which II was desirable TO conceal.
The minutes OF the board OF direc.
tors OF the New Haven show that
Billiard was 10 receive no profit out
OF this transaction other than
reasonable compensation.
In two other transactions shown
In this case Billiard and his company
were admittedly used TO accomplish
New Haven purposes. and in one OF
them. which resulted in a loss. the
New Haven made up the deficit to the
Billiard company.
1T is quite evident that Il was not.
the understanding OF the board that
Billiard Should receive a profit OF So
74S.7OO cut OF these transactions. but
that at most he was 20 receive only a
reasonable compensation for the SER
vice he performed for the New Haven
which was estimated at different
amounts. varying nom 100000 TO
$500 900.
IAN the assets OF the Billiard com.
New Haven railroad. All the money
sunk in its operations belonged to
the New Haven railroad
"A suit should be maintainable by
the New Haven against Billiard and
all who have participated in this
fraud upon the stockholders.
To EntansIe New Haven.
The New England Investment and
Security Company and its Affairs
constitute striking illustration OF
the deliberate attempt 10 entangie
the New Haven with street railways
which has recently been publicly
avowed by former President Mellen.
suit should be maintainable by the
New Haven TO reduce TO its own pos
session the assets controlled by the
New England Investment & Security
Company
The frequency with which dummy
corporations and dummy directors APP
pear in this record leads TO the con-
clusion that some one higher in the
counsels OF the New Haven had an
obsession upon the subject OF the util-
ity OF such sham methods The d.
Tectors OF the Billiard company con-
fessed that they were dummies and
knew nothing Of its operations Why
men OF respectahility and standing. as
these appear TO be, should lend their
names as dummies passes comprehen-
sion
Thus. throughout the entire story
otdeception. the New Haven manage
ment vainly endeavored to hide the
true facts behind these dummy indi-
Yiduals and dummy corporations
No condemnation can be too severe
TO apply TO the frequent use of these
COMPANIES by the New Haven.
While stock in the New Haven
road was listed on the New York Stock
Exchange large portion OF its funds
were invested In Blue sky corpora
tions. the officers OF which knew moth
ing OF the purposes or assets of the
companies Of which they were mana
gers or officers
"A system Of interlockinR director.
ates has grown Up and flourished in
the past few years which has brought
about combinations and intercorpor-
ate relationships not conducive 20 the
public welfare. On the New Haven
board OF directors there was a repre-
sentative 81 the Pennsylvania railroad
which railroad owned Is 900 shares of
New Haven stock. there was n repre-
sentative OF the New York Central
which owned 80 900 shares: there was
representative Of insurance inter
esfs that owned 80 600 shares and a
representative % an express company
that had contract with the railroad.
there were directors who were also
directors 81 the STANDARD Oil com
pany the United States Steel corpor.
alton. tho Pullman company. IN fact,
. cprcsen ed on the New Haven board
every other interest seemed better
than the average stockholders interest.
Tho practice % one man serving
on many boards Of directors cannot
BE- too strongly condemned
Through tho control % voting
trcnEth resulting from stock owner
snip BY other corporations. n few per-
ong whose individual holdings we're
small in comparison with the volume
OF stock of the company were enabled
10 pcrpctuato their full control % the
NeW Haven company In similar
manner the control % other great cor
poratlons is maintained BY means OF
intcrlockinE directorates
The handling OF bank deposits and
ecurity sales of these corporations
are maFsrd In q few hands. carving
with them power and domination
over large amounts 81 banking cani.
ial. az vel a. the control % great rail-
road aystcms. These and other evils
as the result Of interlorknR dircrto-
rates are nov vel rocornfred and
known. and they have been cmpba.
sized by the disclosures OF this inves.
iigation.'