The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1914-07-31
50 MILLION STOLEN
INTERSTATE COMMERCE COM
MISSION eAREs LOOT OF NEW
HAVEN ROAD.
BLAME PUT ON DIRECTORS
Federal Body Calls Financing of East
ern Railway One Of the Most Glar-
ing Instances of Maladministration
in History of Nations Ralroadino.

"dSHlHSIOn, July l4.-|One or tn
most glazing instances of maladminis
tration revealed in all the history o
American railroadlng." is the inter
state commerce commissions charac
terization of its findings in the inves
legations of New Haven railroad finan
cial affairs, reported to the senate.
In report of 10000 words, prob
ably the most drastic In terms OF am
ever made by the commission, the
New Ravens directors were pro
nounced 'criminally negligent"
Evidence pointing TO violation oil
law has been transmitted to district
attorneys in Massachusetts, Rhode Is
land and New York, and the federal
department of justice.
Ihe report, moreover, will be made
the basis of proceedings by stock
holders to recover millions of dollars
alleged to have been wasted by the
management.
Loss Put at 100000.
"A reasonable estimate of the loss
to the New Haven by reason of waste
and mismanagement," says the report,
will amount to between sixty and
ninety million dollars. Directors
should be made individually liable to
civil and criminal laws for the man
ner in which they discharge their
trust"
All the commissions structures
were upon the management of the
New Haven system under former Pres
ident Mellen
Citations in Report
The report cites these significant
Incidents:
Marked features and significant in
cldents in the loose, extravaganza and
administration of the
finances of the New Haven, as shown
In this investigation, are.
Boston & Maine despoilment.
lnequity Of the West Chester acquisi-
ton.
Double price paid for the Rhode Is
land trolleys
hecklessness in the purchase of Con-
necticut and Massachusetts trolleys
at prices exorbitantly in excess of
their market value.
Unwarranted expenditure of large |
amounts in educating public opin- |
ion'
Disposition, without knowledge of the |
directors, of hundreds of thousands |
OF dollars for influencing public
sentiment.
fictitious sales of New Haven stock
TO friendly parties with the design
OF boosting the stocks and unload
Ing on the public at the higher
market price,"
Unlawful diversion of corporate funds
to political organizations.
extensive use of a paid lobby in the
matters as to which the directors
claim to have no information.
lttempt to control utterances of the
press by substituting reporters,
'ayment of money and the profligate
issue of free passes to legislators
and their friends.
Investment of 100000 in securities Of
New England newspaper.
ocular employment of political bosses
In Rhode Island and other states. not
for the purpose of having them per-
form any service but to prevent
them, as Mr. Mellen expresses II
from becoming active on the other
side" {
etention by John L. Billiard of more
than s2,7OO,OO0 in a transaction in
which he represented the New Ha-
ven and in which he invested not q
dollar. S
ability of Oakleigh Thorne to &C. Z
count for $1,O32,000 of the funds of
the New Haven intrusted to him in S
carrying out of the West Chester h
proposition. s
DRY of Mr.. Melien as to the distribr. il
ton of s1,200.0OO for corrupt Dur. t,
poses In bringing about amendments Il
OF the West Chester and Port Chester t
franchises. O
of all the affairs of this b
railroad by Mr.. Morgan and Mr.. Mel. n
len and the absolute subordination te
Oh other members of the board of di e
rectors to the will of these two. b
warranted increase of the New Ha- II
ven liabilities from s93.OOO.OOO in in
1903 to s417.0OO.OOO in 1913. N
crease in floating notes from moth fu
ng in 1903 to approximately s4O.-
100000 in 1913.
ierensioie standard of business eth.
cS and the absence of financial o,,
men displayed by eminent financiers G
n directing the destinies of the
abroad In its attempt to establish
monopoly of the transportation OF
tew England.
A combination of all these has re- ne
ted In the present deplorable situa- 81
In which the affairs OF this rail. va
d are involved" says the report. RI