New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-10-19
Chief Prosecutor, in ALI
Day Speech, Outlines Case
Against Directors.
SAYS S. PLUMBER
WAS Si,500,000 DUMMY
Pressed for Details by Defence,
u. s. Attorney Becomes
Begged in Figures.

. the New maven pfONtCAilbus puN az NO
F first day yesterday OF telling the jury
the governments version of New Eng
land railroad finance under the Mullen
regime Il was a story Of high finance,
he said. that was not intended by the
men who had charge OF New Haven
affairs to be comprehensive to any
normal human mind. He admitted that
he did not understand it all.
/ This confession came after an attack,
as he ran along the high points in the
narrative, directed on him by the bat
terry Of lawyers defending the eleven
New Haven directors and former d.
rectors on trial before Federal Judge
Hunt on charge Of conspiracy TO VIC
/ late the Sherman antitrust law.
GIVE us dates give us details" two
or three of the attorneys demanded rs
Mr.. Bats went into a particularly COM
pick bit Of history. He had declared
/ that for purposes of concealment in a
certain deal by which the railroad got
control of the Metropolitan Steamship
/ Line. three different banks. five dit
/ ferent accounts, ten different deposits
and ten different checks were used in
one day in paying out single sum oil
money.
"Ill give the whole story. then" Mr.:
Bats said when his opponents objected
/ 10 the general outline on which he was
proceeding. "If | seemed confused it
was owing TO the fact that there were
many companies purposely named so
similarly that il is hard to distinguish
( one from the other hard to say which
was Differed by plumbers and which by
corporation lawyers"
Tangle Confuses Prosecutor.
From this point on Mr.. Bats, sub
jected 10 renewed objections from time
70 time by counsel for the defence,
tried to tell his story more in detail
/ lie had started off Auently enough, in
general terms, but when held down 20
specific facts and figures his narrative
halted and seemed TO become lost in a
maze of amounts, dates, corporation
names and transactions. II seemed 10
indicate that all of the two or three
months that have been predicted as the
( length of time the trial will take will
| be needed TO unravel the tangle.
Mr.. Bats said in his opening that
the government would undertake 20
show that the defendants brought this
state Of affairs about with criminal in
tent-knew that they were doing things
/ that were unltwful for tho purpose OF
monopolizing all transportation in New
/ England.
In 1890, he said, the New Haven con-
sisted Of 529 miles Of railroad, owning
/ no trolleys or steamboats,. But by
August, 1914, by combination, contract
or by influence of some character, 1t
| had Increased its holdings to approx
mately 1900 miles in the New England
/ States. and also controlled substan-
/ italy all the steamship routes connect
! ing those states with the rest OF the
country, so as to dictate the operation,
| prices and nature Of the service of all
! New England transportation.
Also. as a part Of the destruction Of
competition. he said, between the New
Haven and the New York & New Eng
! land Railroad, the New Haven refused
10 make joint rates. II later made
reciprocal agreement with the New
| York Central, by which each covenanted
not TO handle the business Of the com
petitors Of either through the New
York terminal.
The Billiard Deal.
Still not satisfied with conditions"
Mr. Bats said, "the New Haven pro-
ceeded to acquire 109,94s shares of
stock of the Boston & Maine. This
was not majority Of the stock, but
you will bear in mind the question OF
what control can be acquired through
interlocking directorates.
This stock was owned contrary to
the laws of the State OF Massachusetts,,
I i. - . a -
| highest resort In that state. At this
time appeared John l.. Billiard, Of the
Billiard company.
"He has won a place In American
history by inactivity; by doing moth
ing; by simply permitting the use OF
( his name. He was prepared for the life
I If a railroad magnate by handling coal
in the town Of his residence. One
morning shortly after this court de-
/ cision he appeared in the Office of Mr..
/ Mellen, president Of the New Haven,
and said he wanted to buy just l09,94S
| shares of Boston & Maine stock. He
/ had TO money; he had no railroad ex-
/ perience.
"The stock OF the Boston & Mario
was listed on the books OF the company
/ at 140. IL was given 10 him for l25.
/ The New Haven borrowed 100000
fc him. They supplied the stock, the
money, everything but the name BILLIARD.
/ lie had the stock. and the company hai
his note for S2,743, soc, the differences
4 between sl3,743.5 500, the price he paid
/ for the stock. and the Sll.000,000
Later. he said. when it became Lawful
/ for the New Haven 10 hol stock in ths
! Boston & Maine, Billiards. stock was
! bought back from him at 100.
when il was sold to him in the first
place Mr. Bats went on, "hfteel
points were lost in the sale, and on it,
reacquisition twenty-five more points
were lost. Two million, seven hundred
and fifty thousand dollars, at least Oh
/ the books OF the company, was lost
the ostensible or apparent profit 10 Bill
] lard for the use Of his name for one
year
He then passed 10 the acquisition OF
/ the Metropolitan Steamship Company
and its complicated processes, saying
that although this transaction was hard
Tor the government TO work out, mo
scrGmbling of eggs can be so complete
that you cannot reconstruct the egg II
you work on il hard and long enough.
+ IL was this transac ion that involved so
many banks, checks, accounts and de.
posts
Among the several corporations
used in the complicated transaction Of
/ paying over a UNI Of money" he said,
was the New England Securities Com
/ pany, organized for the purpose o.
I drawing check After acting through
/ its treasurer, Grover Cleveland Ricn-
/ ards, who prepared for his career Al.
/ high finance by being plumber IN