South Bend news-times. (South Bend, Ind.) 1913-1938, 1914-06-04
Interstate Commerce Board
Will Not Permit Successor of
FinanCier to Testify Out of
Regular Order.
NC CORD ALSO REFUSES
WALL STREET LAWYER
William Skinner Relates Billiard
Stock Story and COndOneS
His Own Conduct in Trans
actions.

WASHINGTON, June George
F. Baker. J. p. Morgan's successor
as the dominating power IN Wall St,
and Lewis Cass Ledyard, attorney for
Wall st. interests, both directors OF
the New York. New Haven and Hart
ford railroad, received snub from
the interstate commerce commission
today. They announced their pres
ence to Commissioner McChOrd at the
opening of the New Haven inquiry
and requested that they be placed on
the stand at the conclusion of VIII
liam SINNERS testimony. Mr.. Nc
ChOrn rejected the request.
I'VE are unable 10 accommodate
you" he said. The inquiry must
take it's natural course"
The board Of directors Of the New
York, New Haven and Hartford rail
road reported 10 the roads stock
holders that the company held $1O,-
400. 600 worth OF securities OF the Bill
lard company when no careful ap-
praisal had been made to determine
the actual value Of the securities,
skinner stated when he resumed his
testimaEy.
why were the assets placed at that
amOunt2"
Il think the interstate commerce
people or some government officials
who supervised the report directed us
TO do sO.'
Asks Explanation.
Commissioner McChord asked for
a clearer explanation of this state
ment and Skinner replied that he
understood the government supervis-
ed the making OF such reports In
some way.
why did you place this particular
value upon the Billiard assets held by
the New Haven2"
I suppose that was all handled by
the accounting department of the
New Haven"
you made no personal investiga-
tion to determine the correctness Of
the statement"
II think not"
was that quite fair to the New
Haven stockholders to give them
report of holdings which you did not
know to be correct"
'I think So"
do you favor interlocking direc-
torates?"
'sThat depends upon the specific
case In the instance Of the New
Haven / could see no objection 10 it.
IL worked out very well with US"
Knew Nothing Of Minutes.
William Nelson Cromwell. attorney
for the New Haven directors, cross
examined skinner regarding the re-
port OF President Mellen III the min
utes Of the New Haven which had
been challenged by Folk upon several
previous occasions as being untrue.
skinner said that he knew nothing
about the minutes and that as he had
been abroad when the matter occur
red ne had no first-hand information
OF the affair This testimony practi-
cally nullifed the effect Of the wit
ness testimony yesterday when he
had given the impression that he
knew the minutes to be false.
Did YOU know that there was no
marketable value of the Billiard Sc
curities when YOU reported to the
stockholders that they We're held by
the New Haven2"
II did not. don't see how anyone
could say that"
Folk then resumed the questioning.
Did you not certify 20 the stock
holders OF the New Haven that the
road held number of securities,
among them S1000O,OO0 worth of
Billiard stock. when you really did
not know whether this stock had any
value or not?"
Il took the report Of the account
ing department TO be correct
Then YOU were really a rubber
stamp Director"
"I accepted what was told me 10y
the men paid To make such reports"
Interiors Care for Routine.
ATTORNEY Cromwell then summed
up the witness answers IN state
ment exposing the fact that all the
machinery OF the routine was carried
on In the inferior departments of the
New Haven system. He asked:
What came before the board OF
direCtors?"
General policies and the financial
sheets in tabloid form
Witness said the board met every
month that the meetings were well
attended. 20 20 q directors being
present that Mellen presented the
business with his comments and rec
concentrations in careful way
some written. some oral; mostly writ
ten. that the treasurer reported
monthly.