Las Vegas optic. (East Las Vegas, N.M.) 1908-1921, 1914-07-13

Washington, July 'Crlmlndl
negligence" and "one of the most glar-
ing instances of maladministration re-
yealed in all the history of American
railroading" were the terms the inter.
state commerce commission employed
today in reporting to the senate on its
investigation of New Haven railroad
financial affairs.
The commissions conclusions may
be summed up this way:
Losses to New Haven stockholders
for the cost of their directors will
range from 100000, 900 to $9O,0O0,oO0.
Suits to recover the money should lie
in some cases.
Many Of the transactions, character
lied violations of the laws of New
York, Rhode Island and Massachu-
setts. and the federal antitrust laws,
have been reported to the authorities
of the states and the federal depart
ment Of justice.
The depreciation of the Boston and
Maine began when the "Mellen-Mor-
gan-Rockefeller management came in
TO control.
John i. Billiard and the Billiard com
Iany were merely agencies of the New
Haven; Billiard never used a dollar
of his own money and burned his
books and papers. It was not the un-
derstanding of the New Haven board
that he should take profits of more
than $2,OOO.OOO.
"All the assets of the Billiard COM
rany belong to the New Haven stock
holders and suit by the railroad
against Billiard and those who parti-
cipated in the transactions should be
maintained"
Dummy corporations and their use,
which the report says in the New Ha-
ven was frequent, are condemned in
unmeasured terms.
The system of interlocking directors
is condemned as it existed on the New
Baven and in general. The commits
sion says it found most every other
interest was better represented on the
New Haven board than the average
stockholders.
President Mellen's dealing with for
mer Police Inspector Byrnes of New
YORK in the Westchester railroad tran
saction were branded as corrupt and
unlawful" The amount illegally ex-
pended should be recoverable.
The purchase of Rhode Island troll
lev lines and coastwise steamships
! we're, described as extravagant and
wasteful,
All the transactions, the commission
holds, were consummated with the OBJ
ject of setting up complete transpor-
tation monopoly in New England in
violation of the federal statutes.
In a report of 10000 words, probably
the most uTaSIlC III Cci lib VI @ily ONSA
made by the commission, the New Ha-
yen's directors were pronounced
'-criminally negligent" Evidence point
ing to violation of law has been trans
mitted TO district attorneys in Massas
hcusetts, Rhode Island and New YORK
and the federal department OF justice.
Enormous Waste
"a reasonable estimate of the loss
to the New haven by reason Of waste
and mismanagement," says the report,
"will amount to between $6OOOOODO
ami s90,O0O.OOO Directors should be
made individually liable to civil and
criminal laws for the manner in which
they discharge their trust
All the commissions structures were
on the management of the New Haven
system under former President Mel
len. In justice to the present manage
ment, the commission says It Is but
fair to say that Chairman Howard FL
liott and Walker q. Hines, special
counsel have co-operated with the
commission and rendered itsubstantial