The Birmingham age-herald., 1914-07-14
TRUST LEGISLATION
 MAY BE EXPECTED

lRUSI LEIlSLAllON
 MAY BE EXPECTED
 In it's investigation the commission found that the New Haven had 336 sub siCiary corporations, many of which served no purpose except "an evil one"
 The report, pointing out that on the New Haven board were representatives of the Pennsylvania railroad, the New York Central, the United States Steel corpo- | rs ticn, the Standard Oil company. the Pullman company, and many other in tereSts, says that inter1ocking directc- rates of this sort cannot be too strongly condemned" This, 1t was suggested at the capitol during the day, probably will have it's effect upon the trust legislation now before the Senate, and may end the 1 talk about leaving he provisions aimed | at interlocking directorates out of all | the Senate antitrust legislation.
 | The commission discussed the question | of immunity which may have been given | to witnesses against criminal prosecu- | ton by the government which led the | department of justice to urge caution in | the conduct of the inquiry. It declares | that only such witnesses seemed necessary are summoned, and says that evidence of 'wrongdoing such as was disclosed" Is difficult to obtain; that | such transactions are conducted in se- cret and in the dark and finds full | justification for its action in the result | Ing discoveries
 "The insuring of honesty through the | management of the great railroads of the country is a most important ques- ton before the people today" says the report in conclusion. "and only when through exposure of wrong doing and
 awakened public conscience, coupled with effective laws that results are
 produced, may railroading be placed on
 the high level that it should occupy. The revelations in this record make it essential for the welfare of the nation that the reckless and profligate finan- ciering which has blighted this railroad system be ended. and until this Is fully done there will be no assurance that the story of the New Haven will not be told again with the stockholders of
 some other railroad system as the vic- tims"
 Evidence that agents of the commits sion did not have an easy time secur- ing information 1t desired was com tained in an appendix filed with the report On July g, D. E. Brown, ac
 countant of the commission, wrote to Commissioner McCord, who has directed the investga tion, that his efforts to get at facts about the New Haven
 had not been met in friendly spirit by J. P. Morgan & Co. Brown wrote that full access to the Morgan records had not been granted him as had been
 
 whether he had been allowed to in- spect all New Haven transactions on
 their books and was given only such correspondence as the firm submitted. From the facts developed In this in vestigation it would seem that there is little question in the committees opinion of a recovery of substantial amount of stockholders money wasted according to the commi ssion.
 Several suggestions of this character have been summarized briefly: Overpaid subscriptions $30S.750. Illegally spent in obtaining Vest chester franchise changes, $1.524072. In the Billiard transaction, $2,74S,70o. The money with which Billiard ac- lquired the additional shares of common stock and the shares of preferred stock of the Boston and Maine Railroad com pany was fguratively furnished by the New England Navigation company. This stock was turned back to the Navigation company for $3,370,0S2. It would seem that a suit through stock holders for the recovery of the profit which is justly due the navigation company if any was made by Billiard in the transaction involving these addi- ticDal shares could pc maintained Not Legal Obligation 'If any expenditures were made in violation of the antitrust laws of the Unlteu states, are not such expenditures
 ultra wires? And Is 1t not the legal obligation of the directors to satisfy out of their own fortunes any loss which results to the company" says the report Directors cannot without Accountability deplete corporate treas- ury in ventures which are in violation | of the laws.
 | :In investigations the committee is required to make it has in accordance with it's usual custom exercised due caution not to require the testimony ] of witnesses where immunity might re-
 suit, except when 1t is necessary in or
 der to get at the truth In carrying out
 Ithe instructions of the Senate in this case, the commission has kept in mind the warning of the department of jus Itice to carefully consider before plac- ling a witness upon the stand the effect
 his testimony might have in the way
 of immunizing him from criminal prose-
 cution.
 With regard to Mir. Mellen, former president of the New Haven system, 1t was the commissions belief that his | Testimony was necessary in this in Jvestigation and the result in our opinion fully justifes this position"