Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1914-06-04
ACCEPTED STATEMENT OF Ac-
COUNTING DEPARTMENT AS
TO VALUE OF SECURITIES.
SKINNER QUESTIONED IN
REGARD TO BILLIARD HOLDINGS
Securities Said to 6e Marketable and
Directorate So Reported to Stock
hoIder-Skinnsr Tsstifiss He Had
Not tho Time to Make Inquiry and
Accepted Accountant Word.

Washington, June 4.--William Skin
ner, a director Of the New Haven rail-
road. continued his testimony today at
the inter state commerce commissions
inquiry into the railroads financial af-
fairs. Lewis Cass Ledyard and George
F. Baker directors, and Lawrence
Minot, former director. were present,
waiting to testify. Mr.. Ledyard Will
testify as a voluntary witness.
why did the directors make re-
port to the stockholders to the effect
that the New Haven held marketable
securities Of the Billiard company.
worth $40. 100000. when they were in
reality Of little value?" asked Chief
Consul Folk Of Mr.. Skinner.
Il took the word OF the accounting
department of the road" he replied.
Have you no auditing committee on
the board?"
NO. but we employ certified ac-
countants.'
Do you know that the accountants
said they had not been able to deter
mine the value of .these securities?"
No. l can not speak for the other
directors, but as far as am concerned.
took the word of the accounting de-
partment."
Then. so far as these securities were
concerned you We're merely a rubber
stamp DIRECTOR"
Il did not and could not investigate
all of those details / accepted the re-
port of the accounting department Of
the value of the securities"
Must Create Sentiment.
Did you know OF the prayer from
the hills issued to create public sem
tinlent."'
Yes
7 do you think it was proper to try
to influence public feeling in that
way"
Il believe a railroad or other pub
l;c corporation has the right to create
public sentiment In it's favor
by deception, do you think it was
right to circulate literature purporting
to come from the people. when. as n
matter Of fact. it was sent out by the
railroads?"
With all the hue and cry against
the railroads they must create senti
ment in their favor"
Are they justified in using any
method?"
No, but they must create the sentl-
ment"
UphoIds Interlocking Drectorates.
'Ycu have representative of the
Pennsylvania railroad on the New Ha-
ven board and a representative Of the
New York Central?" asked Mr.. Folk.
Yes, both roads are represented Oh
the New Haven board The Pennsyl-
vania is very large stakeholder
DO you think that interlocking di-
rectorates work in the public inter-
ests?"
Il think so. yes. We get tremend-
Gus traffic from the Pennsylvania. /
believe the public gets a better SER
vice by our working together"
I'm other words by creating a trans
portation monopoly" suggested Mr..
Folk.
by no means. Such an arrangement
creates no monopoly. 1t works for the
betterment of both the roads and the
public"
Cromwell Puts Questions.
Mr. Skinner was questioned by Will
liam Nelson Cromwell. appearing for
several of the directors.
What was the average attendance
at the directors meetings?' asked Mr..
Cromwell.
About twenty. / think"
"Mere the decisions Of the board
generally unanimous?"
Usually they were. If any serious
objections were raised to any transac-
ton action was postponed"
What brought about the troubled
condition of the New Haven-was it
not the necessity of disintegrating
some of the properties acquired which,
under various laws, the New Haven
had to dispose Of after 1t had. bought
them?''
That had a good deal to do with it."
Morgan No Dictator.
"The purchase OF trolleys and other
properties as understand it, said Mr..
Crom well. "were made with some other
view than the material value at he
time the properties were acquired Was
not the object to make permanent the
New Haven system9'
THAT Is correct"
did Mr.. Morgan at the directors
meeting show any desire to dominate
or dictate?"
Not that recall. He was away In
Europe much Of the time and could
not attend meetings regularly"
Following Mr.. Skinncr's testimony
Mr.. Ledyard was called but was not
sworn He said he desired to contra =
diet certain statements made by Mr..
Mellen in his testimony. on the Boston
& Maine board he said he represented
the largest holders of stock. the Ameri-
can Express Company.
DesehaneI Re-EIected Speaker.