The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1914-07-22
Did some STEALING
STORY OF NEW HAVEN'S TRlCh'
ERY IS MADE PUBLIC.
TALE OF GREAT Waste

Ten Years Showing How Stock
holders Money Was Crininally
Wasted.
The story of the RECKLESS and
profigate'' financial operations of the
New Haven, one of the most remark
able chapters in the history Of Amer
lean railroads and American finance.
was revealed in part Monday by the
interstate commerce commission in
report to the Senate of its iuvestiga-
ton of that road.
It told of millions used like stage
money, of corporations as paWns IN a
monster game with all New Eng
lands transportation as a prize,
which led the New Haven in the ten
years Just passed from the height OF
prosperity to the point where divl-
dend has been passed, where a dis
solution suit is threatening and where
criminal indictments Of many OF the
directors VINO figured in deals are at
least possibility.
Hampered by unwilling witnesses,
By burned books and by all the mazes
which lawyers invented to cover the
trail, the commission estimated that,
in the progress towards monopollza-
ton OF New England transportation
the New Haven stockholders have
lost between S65,00o,00o and $780,
100000, but little Of which they may
recover.
In return, the report said, they
have on their hands properties which
pay no dividends, which eat into the
earnings Of the parent road and
which viii be burden on its capac-
ity for many years to come.
OF tae present directing head,
Chairman Howard Elliott and Walker
ID. Hines, special council, the report
says, sethey have co-operated with the
commission and rendered it substan-
tial assistance throughout this inves-
tigation.''
The New Haven combination, rear
ed by Charles S. Mellea and approved
! by: the late ]. P. Morgan and William
Rockefeller, the commission finds to
: be clearly in violation Of the Sher-
man antitrust act and a monopoly in
practical control Of the Transports
tion Of five States.
The commissions report is unusual
as regards the manner in which the
directors of the New Haven are scor-
ed. It speaks of criminal maladmin-
istration and negligence, asserts with
positiyeness that the directors knew
they were perfecting an Illegal COM
binat:on and says that the dream OF
a transportation monopoly was TN
sound and mischevious.
The New Haven, the commission
: says, employed dummy directors,
manipulated accounts, used question
able methods in increasing its OWE
stock, paid the dividends Of subsid-
iaries to make a showing, and used
many other devices to deceive stock
holders and the public. 1t dipped
5 into politics, was factor in "invis-
ible government, made large CAM
.pa;gn contributions to the two domi-
nant political parties, bought officials
and tried to distort public opinion.
All this it did, the commission says,
s ..to carry out a scheme Of private
transportation monopoly imperial in
its scope"
The report cites these significant
Incidents:
marked features and significant
incidents in the loose, extravagant
and improyidept administration OF
the the finances of the New Haven, as
shown in this investigation, are the
Boston & Maine despoilment; the in
iuuity Of the Westchester acquisi-
ton; the double price paid for the
Rhode Island trolleys;; the reckless
ness in the purchase Of Connecticut
and Massachusetts, trolleys at prices
exorbitantly in excess Of their mar
ket value; the unwarranted expendi-
ture of large amounts in educating
public opinion; the disposition, with
out knowledge OF the directors, OF
hundreds of thousands Of dollars for
influencing public sentiment.
Continuing, the report specifies the
.thabitual payment Of unitemized
vouchers without any clear specifca-
ton Of details, the confusing inter-
relation of the principal company and
and its subsidiaries and consequent
complication OF accounts; the prac-
tiee Of financial legerdermain in is
suing large blocks of New Haven
stocks for notes of the New Haven
Navigation company and manipulate
ing these securities back and forth ;
fictitious sales of New Haven stock
to friendly parties with the design of
: boosting the stock and unloading on
the public at the higher market
price; the unlawful diversion Of cor
porate funds to political organiza-
tons.
tThe scattering of retainers to at
torneys Of FIVE States, who rendered
no itemized bills for service and who
conducted no litigation to which the
railroad was party, extensive use of
a paid lobby in the matters as to
which the directors claim to have no
information; the attempt to control
utterances of the press by subsidizing
reporters; payment Of money and the
prodigate issue Of free passes to leg
islators and their friends; the invest
ment Of 100000 in securities Of a
New England newspaper.
''The regular employment Of politi-
cal bosses in Rhode Island and other
states, not for the purpose of having