Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1915-10-19
BATS MAKES FIERCE
ATTACK ON ACCUSED
NEW HAVEN DIRECTORS
Alleges Formation Of Dummy"
Companies to Control Trans
portation Lines of New
England
MANIPULATION CHARGED

NEW YORK, oct. blow the direct
ors Of the New Haven railroad covered
up stock transactions, formed dummy
companies and otherwise manipulated
high finance TO control and monopolize
the transportation lines OF New Eng
land-steam and eiectric-was told the
jury in the United states District Court
today by Robert l.. Bats, special assist
ant attorney general, handling the Gov
ernment's end Of the conspiracy trial.
william Rockefeller and the other mill
lionaire defendants again heard them
selves bitterly arralgned by Bats, who
went on to show the alleged manipula-
tions of the accused directors in "gob-
bling up" the transportation facilities OF
New England in violation OF the Sher-
man act.
1--WE will trace for you all the manipu-
lations of stock" he said, whereby the
defendants plotted to monopolize New
England transportation in iagrant viola
tion of the statutes OF the United States"
Discussing the acquisition by the New
Haven Of various electric railway lines in
New England, Mr.. Bats said:
I'm the acquisition Of property which
promised competition. these defendants in
one case paid s20O 900 for a line, which
price was at least tls,OO0oO0 in excess of
its value
1T was expected by these defendants
that the excess payment would meet the
deficit of operation for a period of five
years, but as matter Of fact the excess
was used up within two years"
MoRGAN's NAME BROUGHT IN.
The name of J. P. Morgan, the elder,
was first brought into the case when
Bats, in outlining the attempted monopo-
lzing Of New England transportation
lines, mentioned the so-called "Corsair
agreement" which was, according to the
Government a compact entered into by
the accused directors to acquire certain
electric and steamship lines drawn up
aboard Morgan's yacht, the Corsair
Are you sure Of your version OF the
Corsair' agreement" Interrupted r. v.
Lindabury, counsel for William Rookie
feller.
Il am," retorted Mr.. Bats 1T was an
agreement entered into to divide the New
England traffic between the New Haven
and the New York and New England
railways" .--.. .-...
At the afternoon session Bats resumed
his detailed argument of the alleged Bos-
ton and Main manipulation whereby
John Billiard made an apparent profit of
$500, 900.
The Government attorney declared that
through the influence of the accused New
Haven directors the Massachusetts Legis-
lature was induced so to amend the
laws of the State that the control of the
stock might be obtained by the New
Haven without the Massachusetts laws
being violated.
In return for this. said Bats, the New
Haven directors promised to make the
then Governor of Massachusetts presi-
dent of the New Haven. Instead he said,
the directors forgot their agreement and
Charles S. Mellen was made president.
Mr. Mellon, whose testimony hcfore tho
Interstate Commerce Commission in
Washington and the Federal Grand Jury
in New York was largely responsible for
the indictment of the directors of the
New Haven road, was In court ready to
be one OF the first and the Government s.
star witness when Bats shall have COM
p'eted his opening speech. -.v