The Connecticut labor news., 1921-01-21
NEW HAVEN LOOT
 PASSES TO REALM
 OF LAWYERS LORE
Claim of $15O,OOo,Ooo Compro- missed Out of Court for
 a $2,500,00O.
Especial to The Labor News.

inal sum of $2,5OOOOO, one-third to be paid to lawyers, the directors who footed the New Haven railroad system through a series of criminal acts have "pur- chased their peace," and, with the ap proval of United States Circuit court, are permitted to retain their honor: The latter clause has been expressly stipulated in the bond.
 Thus Is written the final chapter ot high finance and manipulation that was described by the Interstate Commerce Commission as "one of the most glar- ing instances of maladminiStratlon III all the history of American rallroadlng. Directors of the New Haven who per mitted, if they did not encourage, reck- less graft and prof1igate waste, through ar agreement ratified by Judge Charles M. Hough, upon restitution ot paitry sum, gain immunity from further pro secution and penalties. The slate mas been wiped clean and the stockholders of the New Haven may whistle tor their wasted substance.
 Widows and Orphans Lose All
 In 1916 after the Interstate Commerce Commission had completed an 1nvest1- gation of the New Haven, minority stockholders began suit to compel the controlling directors to restore to the corporation $15O,OOO,OOO which was lost through bad and criminal management. It had been set for trial January 2l, but within the last few days the disputants reached an agreement which Judge Hough approved. Attorneys for the stockholders are to receive $833, ,55555 and the balance of the two and halt millions goes to the New Haven.
 The immediate effect of this com promise will be the complete loss by # me savings and the annuities of widows and orphans who had been induced to in vest in shares of the New Haven. Until it fell under the evil influence of the footing board of directors this corpora ton was regarded as financially 1nvul- nerable. For years it had been an hon pred and respected institution of New England.
 What the Looters Did
 Among the acts committed by the New Haven directors and for which they have purchased legal immunity and moral unction are the following, enum- erated by the Interstate Commerce Commission:
 1. Extravagant speculations and pur- chase of worthless securities III the 1n- terests of the directors; peculatlons from the stockholders money by illegal QeV1CeS, dCCOHlpdIuSu Dy tlC 1o1oAi AA15 of books and accounts and later burn ing by the directors. 2. Illegally spending the stockholders money and property to corruptly lntiu- ence politics, the press and pubic opln- ion, and to secure secrecy regardlng their acts.
 5. Acts to secure monopoly against public interest, by the violation of the laws of many states as well as ot the nation.
 4. The organization of flake" corpor- ations with dummy" directors to hide the identity of the real promoters and shield them from prosecution.
 5. The voting to themselves of ex- travagant salaries in addition to which large sums of money were taken by some of them without warrant of law. Made Mellen a Scapegoat
 Charles s. Mellen. was president Of the New Haven, and was made a scape- goat for these several indictments brought against the directors. The late ]. Pierpont Morgan, who was seeking to secure a strangle-hold upon New England, that he might force 1t to pay tribute to him and his colleagues, de- clared that all of these acts had been committed without his knowledge or consent William Rockefeller, another director, made a similar plea m avo1d, ance. No director could be induced to assume any share of resPonslDll1ty It was a bitter and broken Mellen who was held up for public condemnation, and he has since revealed sufficient to at least establish a fair presumption that .he was faithfully obey1ng the orders of his superiors.
 Recently Me11en, living III uneasy re- tirement and obliquy, declared that prac- tices which were then revealed and de nounced continue to this day.
 Violated Every Federal Law
 The Interstate Commerce Comm1s sion devoted several months to the m vestigation of the New Haven scandal In it's search for the truth it had te overcome many obstacles. Witnesses testified only after cr1m1nal proseCutlOll' had been started. The conclusion wa: reached that all the troubles of the New Haven resulted from efforts by the ol rectors to circumvent government regu 1ation and to extend the roads dom1na tion beyond the limits fixed by law.
 The commission held that from th' facts developed it would seem tha there is little question concerning tn' recovery of a substantial amount ot thu stockholders money that has been WaSt ed" Minority stockholders. repea1edl. urged the then DOdlu ol uAA - institute recovery proceedings, ana up on it's failure to do so was begun th shit that has just terminated so lamely
 I.C. C.. Fixed Responsibility
 The record of the New Haven wa described as "the story of the protiigat' waste of corporate funds" and thu commission placed responsibility II these words:
 "It is inconceivable that these wrong could have gone on without interference if the members of the board ot direct ors had been true to the ta1th tne1 owed the stockholders. :. None ot th' directors would have been so careless in handling his own money as the eVI dence demonstrates they were III deal ino with the money of other people If these dirctors who were talthless II their stewardship were held responsllp1iif 1i in the courts and at the bar ot publi' oninion for the failure to do things they ebou1d have done, the lesson to directors who do not direct would be very saiu
 Likely to Occur Again
 And then this warning was dellveree h,, 4he commission: "A corporation car be no better or worse than those Whc onerate #. It should be just as grave a crime to plunder stockholders or tlle public through railroad corpoTatl,pln @> if is to personally rob an 1ndlvidudl' H.