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EDITION
Weather Forecast:
Partly Cloudy Tonight and
Tuesday
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2TTJMBEB 8229.
WASHINGTON, MONDAY EVENING, JULY 13, 1914.
PRICE ONE CENT.
OMMERCIAL
IRE MEETING
HELD UP BY
hn S. Clemence, it) Petition,
Charges Committee With
Plot to Juggle Proxies in In
terest of Tuttie.
jfendants Granted Time to
Prepare Reply After Giving
Pledge to Take No Action in
Meantime.
e adjourned meeting of the stock-
VSers of the Commercial nre m-
rane Company, to have been held
1 morning, was atopped by the ac-
n of John 8- Clemence. through At-
ircrys Jackson H. Ralston and Robert
McNeill. In filing In the District Su-
eme Court an application for a rule
show cause way anlnjunctlon should
t tssue against the proxy committee.
proxy committee, it -was explain
waa scheduled to meet and take ao-
n en tne proposes reaucuon 01 uij
pjtal stock of tho company and the
vldlng of $48,000 In dividends among
e stockholders.
Defendants Granted Time.
ie Justice Anderson. In the Su
mo Court, expressed reluctance to
sue an injunction oecause ine "ae-
ndinu were siren but thirty minutes
appear in his court after having:
been served with the papers, 'he ex-
i plained that unless Hugh H. Obear,
representing "the committee, .would as-
ftir the court that zu action would
-tekn by the'.coBimlttee pending the
-position of the Application, he would
e the order immediately.
r Obear asked for a continuance
itl this afternoon. In the -meantime
s consulted members of the commit-
e. The application was taken up at
-e afternoon session of the court.
Justice Anderson directed that an or
:r issue citins the defendants to show
use why the restraining order should
t be issued. The hearing was set for
x .Monday, when the Question of ap-
inting a receiver tor the. company
II also be considered.
Ilr his petition Mr. Clemence states
at the proxy committee, the petl-
iner Deueves. in order to force
In ugh and to pass the resolutions
hv pending before the adjourned
letting of the stockholders to reduce
Ie capital, etc. has wrongfully, ar-
Ivrarily and unjustly undertaken to
ir-anchise many tnougand shares of
e stock of the said company which
e duly represented by proxy, and
a and now refuse to permit those
tiled to vote such disfranchised
oxles, to examine and inspect tbs
me. and the petitioners believe it is
e purpose of the said committee to
-event any inspection of the said
oxles by Xhose entitled to vote the
me. and their representatives.
Fear Juggling of Proxies.
It s also set forth that the petition-
It believe it is the purpose of the said
3Xi committee to so manipulate
sedule and classify said proxies, and
to rule as to the priority of the same,
d as to the effectiveness of the same,
M the defendants, Robert R. Tuttie
d nls associates, through proxies held
tfielr names, may have and vote at
e stockholders' meeting In order to
t the resolutions above described
to capital reduction and dividends by
-wo-thirds vote of all stock of the
fendant company, enough void and
vorfed proxies to enable them to pass
tsr resolutions.
"" petition recites the various stages
rr-ign wnicn we anairs or we coin-
have teen aragga ana the ln-
led litigation which has already de
loped as a result. Justice Anderson
n-uried In the suggestion of Attor
y Ralston that the defendants were
uued to adequate time in which to
ixe their reply to the action, but re-
rated that the delay must he with the
tinet undersandlng that no action
utd be taken by the defendants to
t Jdlce the cause of the petitioner in
e Interim.
mate Votes to Stand
For Old Mileage, 55 to 7
a vote of 65 to 7, the Senate this
t-rnoon decided to retain its mileage
It at 20 cents a mile as against the
posal of the House members that
e oovernment ne caiiea on to pay
actual expenses.
f ie vote was taken after Chairman
artln, of the Appropriations Com
ttec, announced that for the third time
b conierets or tne two Houses were
able to agree on the mileage rate.
. I
IN CONGRESS TODAY.
HOUSE.
. ,t ....
t at noon.
ttr consuming Ume in assemWlnr a
T-mbu,alVUea of -l
Ight impeachment investigation re!
u-ned. . .
SENATE.
et at u o clock.
reign Relations Committee held hear-
fr on Nicaragua.
td Mary Committee work on Clayton
si '
vanson bill for Department of Justice
Ifllng reported.
rate stands by mileage on old basis.
mtor Hitchcock to make report on
cosrv D. Jones today.
10 ENJOIN
8-Hour Act
Illegal, Says
Er.nshaw in
Equity Suit
A suit in equity was today filed it
the Supreme Court of the District
by Basil B. Earnshaw, a stockholder
in the Congress Hall Hotel Com
pany., seeking to enjoin the District
Commissioners from attempting to
enforce the so-called "eight-hour
law for women." and further re
straining the hotel company from
attempting tp comply with the pro
visions In said act.
Tho plaintiff avers that It Is be
yond the power of Congress to pro
hibit the employment of women In
hotels and restaurants for more than
eight hours In any one day. because
the right of contract Involved In the
employment pt labor is a right of
property, and that the enforcement
of provisions of said act would con
stitute a taking of property without
due process of law.
It is alleged that the act dis
criminates against hotels anil res
taurants in favor of boarding
houses, apartment houses, clubs and
private residences. The enormity
of the penalties provided la cited as
a reason for voiding the act as
these penalties practically deprive
the defendants of right of appeal to
the higher courts as it is lropossl
blt to carry on, at a profit, the busi
ness of running a hotel or res
taurant under the act.
Mr. Karnshaw is tho owner of ISO
out of the 2.000 shares of the Con
gress Hall Hote Company.
In the cases of Sarah Hempstead,
housekeeper in the Metropolitan Ho
tel, and Townley A. McKee, manager
of the Southern Hotel Company,
each charged with the violation of
the eight-hour law for women, called
In Police Court today, Jory trials
were demanded.
Weather Bureau Sees No Hot
Wave-in Sight Ohio Lively
to Swelter.
General warm weather throughout
the East, with cooling local showers.
Is the forecast of the "Weather
Bureau for the week. There is no
hot wave in sight for the District
and this section of the country,
although the Ohio and Mississippi
Valley States will continue to swelter
for at least three days yet.
Thundershowers are scheduled to
appear in the District tonight or to
morrow, which will tend to keep the
temperature to normal, the bureau
declares.
Grand Jury Returns
Sixteen Indictments
The grand Jury today returned six
teen indictments :n the following cases:
William Coleman. William Gray and
William Lawson. eight cases of house
breaking and larceny; Henry Williams,
second offense, petty larceny: Duke
Boll, violation S36b District code, Wfl.
Ham Klnley. assault with a dangerous
weapon and with Intent to commit
robbery; Oliver Tolpcn, second offense,
petty larceny; Alexander J, Adams ana
Chester Cochrane, grand larceny; Percy
Brown, ilolation section SSTj of the
District Code., Slmoit Jones and Albert
B. Cook, housebreaking and larceny;
Henry Miles, depredation of private
property: Alphonzo Logan, assault with
intent to kill and with a dangerous
weapon; William W. Ryan, nonsupport
cf wife, Lewis A. Ciucci, forgery and
uuenns.
Commodore Moore Dead
At Duxbury, Mass., Home
DUXBURY. Mass., July IS. Commo
dore William 6. Moore, U. S. N.. re
tired, is dead at his home here of car
diac embolism, followed by an attack
of Indigestion. He was sixty-elrht years
or age.
He first married Mies Eastman, of
Washington, daughter of General East
man. The wedding was a notable event,
at which Gen. U. S. Grant and his wife
received with Mr. and Mrs. Moore.
They bad two sons and a daughter,
of whom Dr Eastman Moore and Mrs!
Keith Forrester, of Washington, sur
vive. The second Mrs. Moore Is also of
Uashlngton and Is a prominent suf
frage worker.
Bichloride of Mercury
Victim Is Convalescing
The condition of Miss Bernlce SwJtter,
who Is suffering from bichloride of mer-
cury polsonlnr. is regarded as very fa.
tyorahie, ana aoctors at casualty Hos
J pltal said today that the young woman
,wouia recover.
I Miss Switzer is twenty-ono years old
d ve .t mm E street north .
.,,
Left All to Sister.
Under the terms of the will of
"Richard A. Drlscoll. filed for probate
(today, all of his property, both real and
j personal. Is devised to his sister.
snagei x-xiver, wuv b uauim execu
trix without bond. 'The will Is dated
October 15, 1912. Mr. Drlscoll died
July 8.
Asks Absolute Divorce.
Katnerlne B. Biondi today filed suit in
the Supreme Court of the District of
Columbia for an absolute divorce from
Orica 3. Biondi.
COOL NG SHOWERS
DISTRICT FORE AST
WILL ASK WILSON
TO
Home Rule Committee Seeking
Appointment With President
to Make Request.
CHAIRMAN ALSO CALLS
ON THE COMMISSIONER
Latter, Believing Fight Is Also
Directed Against Executive,
Will Not Resign.
While Oliver P. Newman, of the
Board of Commissioners of the District
of Columbia, was discussing with Presi
dent Wilson today the status of the
court proceedings to oust him fTom his
office. Fulton R. Gordon, chairman Of
the Home Rule committee of the Dis
trict, was sitting in an outer office at
the White House today seeking an ap
pointment to appear before the Presi
dent with his colleagues and request
that the latter demand Newman's
resignation.
4-
Mr. Gordon had called previously at
the office of Mr. Newman and asked
of the latter an appointment for the
same committee to appear before the
Commissioner to formally request that
he resign. Commissioner Newman told
his visitor that he would advice him by
telephone tonight or tomorrow whether
he would receive the committee. Secre
tary Tumulty advised Mr. Gordon that
be would take tip his request for an
appointment with the President and let
him know later. It Is thought that the
request for a hearing will be granted.
In discussing the status of his case
with the President, Mr. Newman did
not offer to resign. According to his
friends he Is determined to stick to
his post to the end, and these same
friends declare the President will
stand by him. Mr. Newman Is said
to feel that inasmuch as the fight to
oust him is directed as much against
the President as against himself, to
resign under fire would amount to an
admission on his part that the Presl-
J dentjhaA erred Innamlngjilm.
xne committee wnicn jut. uoraon
hopes to take before the Commlsslon
er'and the President, consists of him
self, as chairman; Charles C. Lam
caster. James L. Parsons. Martin
Wlegand, Dr. J. K. Gleason, Arthur
cowsiu ana Percy Metzger. The
Home Rule Committee Is responsible
for the legal proceedings brought to
oust the Commissioner.
STORM IN DETROIT
Paper Company Plant and
Packing Sheds Among the
Buildings Destroyed.
DETROIT, July U. Street railway
service was disrupted, telephone and
light wires were blown down, several
buildings destroyed by fire, and police
and fire signal boxes burned out dur
ing an electrical storm that swept De
troit and vicinity early today, doing
damage estimated at $100,000.
Destruction bv fire of the Chope-Stev-ens
Paper Company plant. In he down
town wholesale district, was the larg
est single Item of loss. The flames
started from a bolt of" lightning, and
despite efforts of the city fire-fighting
force, the bulldiag was wiped out and
adjoining structures damaged. The loss
was placed at 100.000.
The Chope-Stevens fire followed one
that destroyed the stock sheds of the
Sullivan Packing Company. Trapped In
their pens, more than a thousand cat
tle, hogs, and sheep were burned.
Asks Senate to Probe
Lind's Advice to Rebels
Following the failure In the house tq
authorize an Investigation of the
charges that John tlnd while repre
senting President Wilson In Mexico,
nstructed the constitutionalists how a
evade the embargo on arms. Senator
William Alden Smith of Michigan put
In a similar resolution tn the Senate
today.
The resolution Includes a proposal to
Investigate alleged corporate financing
of civil strife In Mexico and whether
"any agents of the United States may
be In any way personally or financially"
Interested.
Pittsburgh Boy Scouts
Call at White House
Before leaving Washington today on
a long hike to Baltimore and Philadel
phia, a company of Boy Scouts from
Pittsburgh paid their respects to Presi
dent Wilson, at the White House.
The boys, under the leadership of
Scoutmaster A. L. France, left Pitts
burgh about three weeks ago. and
walked to Washington. After going to
Baltimore and Philadelphia the lads win
return home by train.
Woman Made Collector.
Secretary of the Treasury MeAdoo to
day designated Miss Lysie enristensen'
as collector of customs at Salt Lake
City until a permanent successor to
Jacob Greenwald can be chosen. Misa
Chrlsteneen is the only woman in the
United States serving as collector of
customs.
I
NHN
DOES GREAT DAMAG
SUFFRAGISTS WHO INVADED THE CAPITOL
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Members of the Congressional Union Who Journeyed to the Capitol and House Office Building to Secure Support for An Early Report on the Bnstow
Mondell Resolution, Now Before the Rules Committee, Conferring the -Suffrage Upon Women. The Picture Was Taken Just Before the Delegation
Entered the Rotunda of the Capitol.
JOHNSON CALLS UP
PLffl AWARDS BILL
House Debates Measure Pro
viding for Awards by Com
mission of Three.
The District calendar obtained the
right of way In the House today, and
Chairman Ben Johnson, of-the-District
Commlttee7calbd up Rli substitute reso-
lutlpn for settling the Plaza awards con
troversy. Mr. Johnson opened the debate on the
resolution, and Indications are that the
House may spend the entire afternoon
discussing the Plaza cases. Congress
man Logue, of the Public Buildings
Committee, which also has a. resolution
relating to the Plaza condemnation, is
to follow with a speech in favor of that
committee's plan.
Congressman Johnson's argument
was largely a repetition' of the report
which he filed Saturday and which
was published in The Times. Mr.
Johnson told tho House that the
President had been unable to approve
the Plaza awards "because he could
not put his hands Into the Treasury
for the benefit of the Baltimore and
Ohio Railroad."
Congressman Johnson reiterated his
assertion that the original commission
consisting of the then Vice President
Sherman, Speaker Cannon and Super
intendent Elliott Woods of the Capi
tol, had 'disregarded the law by con
demning the property more rapidly
than the law provided for.
Minority Leader Mann asked If Mr.
Johnson did not know the Attorney
General of the United States bad ap
proved the course of the commission,
and Mr. Johnson said he had no
knowledge of such a fact.
The Principal Provisions.
The substitute Johnson resolution for
settling the Plaza awards authorizes the
creation of a commission of three, to be
named by the President, with tha dis
tinct proviso that no one Interested di
rectly or indirectly In the property shall
serve, and with the further proviso that
no member of Congress shall be on the
commission. It" Is also stipulated no
person who has served within the past
five years on condemnation juries In the
District shall be eligible for service on
the commission, this section being
aimed at what Mr. Johnson terms "th
jury trust" and "professional 'Jurors."
The principal provisions of the bill,
other than those imposing restrictions
on the personnel of the proposed com
mission, are as follows:
"The said commission shall have pow- j
er to purchase any of said real es
tate at such a price as the said com
mission may deem to be the fair mar
ket value thereof, not exceeding, how
ever, as to any lot or parcel, the
amount of the award made thsrefor In
the condemnation proceeding. District
court action numbered 1.0W, recently
pending In the Supreme Court of the
Dintrlct. Provided, however, that tho
purchase price to be paid bereundas.
for any of said real estate which waa
owned by either the " Baltimore and
Ohio Railroad Company or the 'Real
Estate Improvement Company, of Bal
timore city, at the Ume when said ac
tion numbered 1.046 was Instituted zhail
not exceed the bona fide, actual, origi
nal cost thereof to elth-jr of said com
panius, plus 6 per ctftum Interest
thereon from the date of purchase by
either of said companies, until the
date upon which the court confirmed
the awards made In the aforcsand Dis
trict court action numbered 1.016.
"No purchase herein provided for by
said commission shall be deemed to be
complete until such purchase vhall have
been approved by the President df the
United States. When tha President has
so approved and the Attorney General
of the United States has certified that
all necessary deeds conveying to the
United States the unencumbered fee
slmnle title to the real estate so pur
chased hax'e been delivered, the Presi
dent shall cause payment of the agreed
purchase price to be maae to tne per
son or persons entitled thereto. All
ueh payments shall be made out of
the appropriations heretofore made for
the acquliliton of said real estate:"
Pou Crushes Hopes
For Suffrage Action
"Gentlemen's Agreement"-Keeps Measure in Rules
Committee of Present Session of Congress, He
Tells Delegation-Which Invaded House With
Petition Cannot Meet Until August
Hope of the suffragists for consideration by this Con
gress of a constitutional amendment granting them the
ballot, was crushed by Acting Chairman Pou, of the House
Rules Committee today.
A gentlemen's agreement among members of the
Rules Committee, he told another small army of repre
sentatives of the Congressional Union which 'bore down
on the Capitol, would prevent consideration of the House
resolution at this Congress.
The effort 1o induce the Rules Committee to call a
meeting to report out the suffrage resolution was a mighty
one. The delegation gathered 'in the rotunda of the Cap
itol, where it was received by Congressman Frank W.
Mondell, author of the suffrage measure, and by Congress
men M. Clyde Kelly of Pennsylvania and Irvine L. Len
root of Wisconsin.
INVADE HOUSE OFFICES.
Mr. Mondell quickly affixed his sig
nature to the petition. Because there
were but a few members of the Rules
Committee In the rotunda at the time,
the suffragists Invaded the House Of
fice Building with a view of rounding
up the other members. They met with
but little success.
After signing the petition, Mr. Kelly
and Mr. Lenroot each made a short
address. In which they assured the suf
fragists of their sympathy for the
cause, and promised to do all In thetr
power to bring about an early meet
ing of the committee to secure a fa
vorable report made on the suffrage
resolution.
Following is the petition which the
members of the Rules Committee were
asked to sign:
The undersigned, members of the
Committee on Rules, of the House
of Representatives, respectfully re
quest E. W. Pou, as acting chair
man, to call a meeting of the com
mittee on Rules within a period of
seven days from this date, to con
sider House Resolution No. 614, pro
viding for the consideration In the
House of House Joint Resolution
Keeping Close Watch
For Loan Violations
Loan companies generally are comply
ing with the law, according to officials
of the office of the Corporation Counsel,
who recently conducted a vigorous cam
paign against the "loan sharks." The
number of complaints regarding alleged
usurious rates of Interest, It was said
today, now averages three or four a
day. These, It was said, ara the ' fag,
ends" of the business conducted by the
loan companies prior to the beginning
of the activities of the office of the
Corporation Counsel, during which
period the complaints averaged seventy
five a day.
Close observation Is being maintained
on the loan companies, however, and
all violation of the law. It was stated.
will be prosecuted vigorously.
At 104, Still Keeps Job .
Given Him 81 Years Ago
PHILADELPHIA, July 11-Jake Hoe-
bach rounded out a pleasant celebra
tion of his 104th birthday by eating a
half section of a juicy cherry pie. Jke
is employed as a farmhand in Rox
borough. He has held his present job
for eighty-one years, and has ntvtr
once tired of his wont-
'
No. 1, extending the right of fran
chise to women.
Having secured the signatures of the
three members who received them, the
women Immdiately divided into squads
and set out to round up other members
of the committee.
Congressman Pou of Nsrth Carolina,
senior member of the Rules Committee
In Chairman Henry's absence, was vis
ltd fltrnfti n1 itriAi fn !iil a msilnr I
Mr. Pou told the vote-seekers, as on
Mr nn 7m th. ,i......'v7,: .7 X
previous occasions, that since the Dem
ocratic members of the committee had
agreed not to hold any meeting until
the first of August, there was nothing
he could do to bring about the consid
eration of suffragist legislation earlier
than that date.
Anti-Suffrage League
Denounces the Ballot
That the possession of the ballot will
Injure In many ways, rather than bene
fit the working woman, and that the.
(Continued on Second Page.)
Militant Feigns Sleep
As Her Trial Is Called
LONDON. July 13. Instesd of hout
Ing at the magistrate and sndeavorlng
to disrupt the court proceedings, as
has been the practice of suffragettes
recently, Annie Bell pretended to be
asleep today when arraigned for trying
to blow up the church of St. John
Evangelist. Westminster, yesterday.
Miss Bell said she was sorry she was
interrupted after lighting the fuse at
tached to a can of powder and declared
she Intended to blow up the church.
When the case was opened. Miss Bell
stretched out on a bench and aeked the
matron to awaken her when proceed
lngu ere concluded. She was remind
ed for trial.
Close Vera Cruz Rail Gap
As If For Huerta's Flight
VERA CRUZ, Mexico. July U. The
three-mile gap in the railroad outside
of Vera Cruz Is being hurriedly repair
ed today. It Is presumed that the line
between Mexico City and this port is
being made Intact so that General
Huerta may be brought Into the Ameri
can lines.
'
m. iii.i ij.TU ' LJBL I. .11 I . W
SECOND RESOLUTION
HEEDED FDR BUDGET
House Will Be Asked to Again
Adopt Measure for Expenses
for July.
Chairman Fitzgerald, of the Approprt,
ations Committee; 'will ask the House
tomorrowto again adopt a "continuing
appropriation" resolution, necessary be
cause of the failure of four of the an
nual budgets to become law before the
beginning of the new fiscal year. July
1. The Fitzgerald resolution will be
similar to that adopted early this month
extending the old appropriations into
the new year. It will provide that one-twenty-fourth
of the amounts carried
in the bills of last year be continued
to meet the emergencies of another half
month.
The bills and departments for which
continuing" appropriations are needed
are the District of Columbia, sundry
civil, legislative and Indian budgets.
It was learned today that the reso
lution as reported will contain no spe
cific reference to the bathing b-h nH
Playgrounds of the District of Columbia,
which have been running on half time.
The bathing beach has been closed for
months, and not over a twelve-manth
period, the mere extension of one-twenty-fourth
of the appropriation is not
sufficient to keep itgonig.
The Appropriations Committee, bow
ever, holds that it would establish a
bad precedent to pick out two pet
Srojects n a continuing appropriation
111. and the bathing beach and play
grounds will have to get along for a
few more days on one-twenty-fourth
of the 'last year appropriations, what
ever they may have been.
Health Department Gets
Part of Emergency Fund
The Commissioners today approved the
recommendation of Health Officer.Wood-
ward mat a sufficient amount, not to
sr aa1 Tt tvsk nnntrlai t4 ?& !&
- .. . . .
wnergency tuna or tne District to pro
vide for personal services in the con
tagious disease service of the Health
Department.
The appropriation of J500 for salaries
in the contagious disease service, speci
fied in the continuing resolution pro
viding for the expenses of the DIs.rict
government for the first fifteen dajs in
July, was exhausted July 10. The sum
was Insufficient, officials say, to main
tain the service, in which in included
the maintenance of the mallpox hos
pital and quarantine station, the sal
aries of seventeen employes and the
care of John Early, the leper.
The money appropriated from the
emergency fund. Dr. Woodward said,
will, in his opinion, be sufficient to care
for the situation until additional funus
are provided by Congress.
Senate Tariff Authority,
Benjamin Durfee, Dead
Adiiees received at the Capitol to
day told of the death of Benjamin
Durfee. an authority pn tariff, who
became clerk of the Senate finance
Committee in 17i.
Mr. Durfee died In Maryland. Ilia
funeral will be at 2 o'clocl Tuesday
at New Bedford. Mass. He left
wife, who lives in Washington, nnd
three daughters.
Mr. Durfee was born In North Car
olina. Appointed to the itair of the
Finance Committee unde- Senator
John Sherman, he has served wtili the
committee ever since. He was taken
eerituily ill alter aoagr of the last
tariff measure.
New Haven Directors
To Await Report Text
NEW TORK. July 13. The New York.
New Haven and Hartford railroad vrill
make no statement relative to the re
port of the Interstate Commerce Com
mission until after an official copy of
the report is received and placed before
the board of directors.
This announcement was made this
afternoon from the office of Presldnt
ustls, acting chairman of the New
Haven Company, in the absence of
Chairman Elliott, who la away on a
Have of absence.
I.C.C.ARRAIGNS
MANAGEMENT
OF NEW HAVEN
AS
Report to Senate Condemns Di-
rectors for MHI'ior Wasted
to Acquire Properties that
Brought Only Deficits.
Cads "Fruits" of Some Deals
"Criminal," and HoMe Offi
cers Responsible for Waste
of $67)000,000.
That the. monopoly theory of the
New Haven road was unsound and
mischievous, that its directors were
"criminally negligent," and that
substantial part of the stockholders'
money wasted can be recovered, are
the high spots in the Interstate Com
merce Commission's report to tha
Senate today on the New Haves in
vestigation. The report is regarded
as tha most condemnatory document
ever issued by the Interstate Com
merce Commission. The report vig
orously arraigned the managers of
the road and condemns their policy
of finance.
The commission declare tha New
Haven directors consciously violate!
the Federal anti-monopoly laws. No
attempt Is made to fix the respons!-,
bllity for; the New Haves transaction
as between President Hellea and J- P.
Morgan, but the report, coftdsaana-tae
controlgsaerally.',- .,
Up .to MeMtyatilU Kow.
It is up to- thr Department of Jus
tice to act upon the commission's
declaration that the New Haven direc
tors were criminally responsible !n
the New Haven transactions, an In
terstate Commerce Commission of
ficial stated.
Chief Counsel Joseph Folk, who
conducted the New Haven inquiry,
said that tha report made the direc
tors directly responsible for more
than 1(7,000.000. The total loss to the
New Haven stockholders, through
mismanagement and carelessness. Is
somewhere between 10,009,000 and
190,000,000. the commission estimates.
The commission put the matter
squarely up to the Department of
Justice for action by furnishing it
with a. complete record of the testi
mony. "The result of our research Into the
management of the New Haven sys
tem has been to disclose one of the
most glaring Instances of maladmini
stration revealed in all the history of
American railroading.' the report
reads.
Many Law Violations.
The commission saya it also found
many instances of violation of State
laws. It has turned the evidence con
cerning violations In New York city to
the district attorney for the proper dis
trict and the testimony of law viola
tions in Massachusetts and Rhode
Island has been laid before the authori
ties of those States for action.
"The difficulties under which this
road has labored in the past are inter- '
nal and wholly due to. its own mis
management.'' said the commission.
"Its troubles have not arisen because
of regulation by Government authority.
Its greatest losses and roost costly
blunders were made in attempting to
circumvent governmental regulation
and to extend its domination beyond
the limits fixed by the law."
The New Haven has spent pM.00O.00O
In acquiring a traffic monopoly in th
five States of Jts territory, the com
mission estimated. The dea's necessary
to acquire trolleys and steamship lines
to complete this monopoly ha,ve !een
"skillfully concealed by the Juggling of
money and securities from one subsi
diary to another." the commlssbn de
clares. Going more Into detail the report
says:
The Westchester DeaL
"The Westchester U a story of tha
crofllgate waste of corporate funds.
The road was not necessary as a part
of the New Haven sjstem. It parallels
other lines alreadv owned by the New
Haven and traverses territory which
the New Haven already served. That
it was recognised as unnecessary by
the New Haven itslf at 1U inception
is evidenced by .he .fact that the New
Haven sought an Injunction to restrain
the construction of this road on the
Inectflc irrouna mai wa uoi in
enswer to any pu'ollc necessity
and
puralleieo lis ""- "-, ""Ji.
'-.7-. . ,.r -,-.... .-i-.i-. ii--
imi
xne cnormuua rjiu v. i,i,iiiu
was expended for road only li-ttJ
mil's In extnt- which Is boing oper
and at an annual la of approximate
ly jl,30.00. and which will have to
Increase Its earnings four and one-half
fold before it can pay its operating ex-j-enses
and fixeJ Marges. It is In
conceivable" that lh enterpris could
have been enWred Into by the New
Haven as a result of the mandates af-r-good
judgment and proper railroading'
Blame Is Placsd.
"The Westchester acquisition was
planned and executed by a special com
mittee of the board, consisting of
Directors Morgan. Rockefeller, and Mil
ler, with President Mellen as chairman.
The vote appointing this committee 'on
proposed competition between the Con
necticut State line and Harlem river,
with power." does not disclose an In
tention to authorise the buying of charters-
and promotion securities and tha
PRORJGATE
4
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l
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