The Richmond Virginian. (Richmond, Va.) 1910-1920, 1914-07-14
Holds Mellen Regime Crimi-
nally Negligent and Subject
to Prosecution
Stockholders Robbed
of Over $70,0OO,O0O
Investigation Reveals Most
Glaring Instances of Malad-
ministration in All History Of
American Railroads

] Washington. July i3.--In one Of the
hardest reports ever handed down by
government bureau, the interstate
commerce commission today held the
directors of the old MANAGEMENT OF
the New Haven railroad criminaiS
negligent and subject to prosecution
Under the sherman antitrust and
other laws.
The commission has put the matter
Of criminal proceedings TO Attorney
General Mc}teynolds ~ referring 10
him a complete record OF the testl-
mony taken before the committee.
The commission also mas. called the
attention of District Attorney Whit
man, Of New Y ork. and the prescott
ing officers in Massa chnsetts and
Rhode island 10 possible violations OF
state laws,
The commission estimates tha- be-
tween s7o.000. 600 and 10000, ooo has
been lost - the New Haven stock
holders through waste and impair
fnent of value 5 under the old manage
ment 1t expresses the opinion that
a part. at letst, II this amount should
lie recovered from the individual d.
rectors and others.
t.Iaring Maiadministration.
The result Of our research lnIo the
financial workings II the former man
Agement Of the New Haven systt IN. -
saws the report, has been 10 disclose
one of the most glarfng instances Of
maladministration revealed ~ all the
history Of American railroads.
The commits sion finds that the late
j T. Morgan and Charles Mclien
dominated the affairs of the New
Haven road, and that the other mem
hers Of the board of directors sub
ora.natcd themselves 10 the will of
W. AMT . of arS
peaiedly, however, To the New Haven
directorate and officers rs the "Melien
Morga n Rockefeller management
Personnel az Directorate.
The New Haven directorate so
harshiy attacked by the commission
was made up as follows:
William Rockefeller. Charles r
Brooker, Edwin Miner, william
skinner. p. Newton barnes, Charles
: Mellen Robert W TAFT, James s
Elton. James S. Hemingway, A
brewster. Henry X McHarg. Alex
ander Cochrane. John l., Billiard.
George f. Baker. r. Dewitt Cuyler,
Theodore y Vail, Edward Milligan,
Francis r. Maxwell. Sidney w. Wins
low, Samuel Rea. Laurence Minot.
Morton F Plant. y. NJ Warner the
late J, +. Morgan and John d Pratt.
OF the individual responsibility of
the New Haven directors, the COM
missions report says
1T is inconceivable that these
wrongs could have gone on without
Interference. If the members of the
board Of directors had been true to
the faith they owed the stockholders.
A number OF directors appear in many
instances to have voted without
knowledge. and to have approved the
expenditure of many millions without
information, According to testimony,
they merely approved what had been
done by some committee, or by some
officer OF the company. The direct
tors minutes reveal that it was barely
"A body OF ratification and not author
ization. which the law intended a
board of directors should be.
Thoroughly Corrupt.
The commission characterizes the
New Haven monopoly as thoroughly
corrupt,
The report contains one bright ray.
however, for the future. 1t says
The splendid property of the New
Haven railroad Itself will be called
upon for many year TO make up the
drain upon its resources resulting from
the objectionable folly of the trans
actions outside the proper field in
which its stockholders supposed their
money was invested But honesty and
efficiency of management OF this prop
erty OF the railroad only will undoubt-
eddy, in time, restore its former stand
ing"