Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1914-07-22
80 MILLION STOLEN
us. bODY'S CHARGE
Commerce Commission Bares
Loot of Eastern Road.
BLAME PUT ON DIRECTORS
Federal eody Calls Financing One OF
Most elarine Instances Of Ms'ad-
rninIstrstlon In History Of
Nations RaIlroadlna.

tration revealed in all the. history Of
American railroading," is the inter
state commerce commissions charae-
terization of its findings in the inves-
tigators of New Haven railroad finan-
cial affairs, reported TO the senate
Monday
In a report of 10000 words. prob
ably the most drastic in terms OF any
ever made by the commission, the
New Ravens directors we're pro-
nounced "criminally 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
10 the New Haven by reason of waste
and mismanagement." says the report,
will amount TO between sixty and
NINETY million dollars. Directors
SHOULD be made individually liable TO
9civil aud criminal laws for the man
tner in which they discharge their
trust"
All the commissions structures
were upon the management OF the
New Haven system under former Pres
ident Mellen.
The report cites these significant
incidents:
Marked features and significant in
-cldents In the loose. extravagLnt and
improvident administration of the
finances OF the New Haven. as shown
in this investigation, are:
Boston & Maine despoilment
lnequity OF the West Chester acquisi-
ton.
Recklessness in the purchase OF Con
nectieut and Massachusetts, trolleys
at prices exorbltantly 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 prohigate
Issue of free passes to legislators
and their friends.
Investment of 100000 In securities of
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 $2.700,000 in a transaction in
which he represented the New Ha.
ven and in which he invested not a
dollar.
Inability of Oakleigh Thorne to &C.
count for s1,0S2.000 of the funds OF
the New Haven intrusted to him In
carrying out of the West Chester
proposition.
Story of MIR Mellen as to the distribu.
ton of sl.200.o00 for corrupt pur.
poses in bringing about amendments
of the West Chester and Port Chester
franchises.
Domination Of all the affairs of this
railroad by Mr.. Morgan and Mr.. Mel
len, and the absolute subordinatior
" of other members OF the beard of di
rectors 20 the win OF these two.
funwarranted increase of the New Ha
zen liabilities from t93 100000 IL
1908 to SAT- 10000 In 1918.
Increase In floating notes from moth
ing in 1908 to approximately $40,
000,6ae in 1918,
1ndefensibie standard of business eth
les and the absence of financial acu
men displayed by eminent financier
in directing the destinies OF thi
railroad in Its attempt 10 establish
a monopoly OF the transportation o
New England.
"A combination OF all these has re
suited in the present dep orable situs
Tion In which the affairs OF this rail
road are involved" says the report