Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1914-07-14
Controlling Theory Unsound

Controlling Theory Unsound
This Investigation has demenstrat-
ed that the monopoly theory Of those
controlling the New Haven was I'M
sound and mischievous in its effects.
To achieve such monopoly meant the
reckless and scandaIous expenditure
of money; it means the attempt TO
control public opinion, corruption of
government; the attempt to peryert
the political and economic instincts
of the people in insolent defiance of
law.
Invisible Government
Through exposure of the methods
of this monopoly. the invisible gov
eminent which has gone far in its eff
forts to dominate New England has
been made visible. 1t has been clear
ly proved how public opinion was dis
torted; how officials who were needed
and who could be bought were bought;
how newspapers that needed to be
subsidized, were subsidized; how
college professor and publicist secret
ly accepted money from the New Ha-
ven while masking as a representative
of great American university and
as the guardian of the interests of
the people; how agencies of informa-
ton to the public We're prostituted
wherever they could be prostituted in
order to carry out a scheme of pri-
vate transportation monopoly impe-
rial in it's scope.
CareIessness of Directors
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.
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 the testi-
mony of some of the directors, they
merely approved what had been done
by some committee, or by some officer
of the company. The directors min
utes reveal that it was largely a body
for ratification and not authorization,
as the law intended a board of direct
ors should be. None of the directors
would have been so careless in the
handling of his own money as the evil
dence demonstrates these were in
dealing with the money of other peo-
pie The directors actively or pass
ively acuuiesced in the efforts of the
Mellen- NJ organ Rockefeller regime to
extend the domination of this corpo-
ration over the whole transportation
field in New England.
IF these directors who were faith
ho1
responsible in the courts and at the
bar Of public opinion for the failure
to do those things they should have
done, the lessen to directors who do
not direct would be very salutatory.
Most of the directors of the New
Haven accepted their responsibilities
lightly. They failed to realize that
their names gave confidence to the
public and that their connection with
the corporation led the public to in
vest. When these directors were neg
ligent and serious losses resulted
therefrom they were guilty of a grave
dereliction of duty and breach of
trust that was morally wrong and
criminal In its fruits.
Directors should be made individ-
ually liable to- civil and criminal laws
for the manner in which they dis
charge their trust. 1t should be just
as grave a crime to plumber stock
holders or the public through rail
road corporation as it is to personally
rob an individual.
1.-THE splendid property of the New
Haven Railroad itself will be called
uuon for many a year to make up the
drain upon it's resources resulting
from the objectionable folly of the
transactions outside the proper field
in which stockholders supposed their
moneys were invested.
But honesty and efficiency of man
agement of this property as railroad
only will undoubtedly, In time, restore
it's former standing.
at was found in the investigation
of the New Haven system that there
are 1856 subsidiary corporations and
the books of the New Haven Road
proper reflect only small part OF
the actual financial transactions OF
the railroad.
Many of these subsidiary corporations
served no purpose except an evb, one.