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The Ogden standard. [volume] (Ogden City, Utah) 1913-1920, July 13, 1914, 4 P.M. City Edition, Image 1

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U 11 P U 0 U 1 1 1 lil U U (i I U . TWELVE PAGES I
..rv,e. h ,. glv, h. t.r.. p, KSSJ V " T T " WEATHER Tonight ' and 'Tueidiiy "
ain In the United State. f Generally Cloudy; Probably Local I I
9 r ' Thundershowen, Slightly Cooler in
1 Vorty-fcurth Y.iiNo. 196-Prlce Flv. Cent.. 7 OGDEN CITY, UTAH, MONDAY EVENING, JULY 13, 1914. Ent.r.d M Second CI... : ,l th, Penofflce. Ogden. Utah. H
"One of Most Glaring Instances of Maladministration, Reveal
ed in All the History of American Railroading' Is State
ment in 30,000 Word Review Waste and Misman
agement Causes Loss of Between $60,000,000
and $90,000,000.
) ! Boston and Maine Despoilment, Inequity of West Chester Pur-
J, chase, Double Price For Rhode Island, Recklessness of
Other Purchases at Prices Far Above Market Value
and Unwarranted Extravagance in Every
Direction Is Charged.
Washington, July 13. "Criminal i
negligence." and "one of the most 1
glaring instances of maladministra-1
tion revealed in all the history of i
American railroading,' was the terms :
the interstate commerce commission
I employed today in reporting to the,
'senate on its investigation of Newt
Haven railroad financial condition
The situation may be summed up
i tils way:
B Many of the transactions charaeter-
W ized as violations of the law and the
federal antitrust laws have been re
ported to the federal department or
I justice.
The depreciation of the Boston and
Maine hegan when the Mellen-Mor-gan-Rockefeller
management came
4nto control
John L. Blllard and the Blllard com
pany were merely agents of the NeV
Haven; Billard never used a dollar
of hit own money, and burned his
bookt and papers It was not tha
understanding of the New Haven
board that he should take profits ol
mere than $2,000,000 All the assets
i of the Blllard company belong to New
f Haver stockholders and a suit by the
V railroad against Billard and those
who participated in the transactions
should be maintained.
Dummy Corporations
Dummy corporations and their use,
which the report says In the Nev
Haven was frequent are condemned
in unmeasured terms
The system of interlocking direc
tors is condemned as it existed on
the New Haven and In general. The
commission says it fcund most every
railroad's Interests were better rep
resented on the New Haven than that
of the average stockholder.
Tre'oident Mellen's dealings with
tormer Police Inspector Byrnes of
New York in the West Chester rail
road trapsaction were branded as cor
rupt and unlawful.'
Illegsl Expenditures Recoverable.
The amount illegally expended I
1 bhould be recoverable
The purchase of Rhode Island trol
ley lines and coastwise steamships
were described as extravagant and
All the transactions the commis
slon holds were consummated with
the object of setting up a complete
transportation monopoly in New
England in violation of the federal
Washington, July 13 "One of the
f most glaring instances of malarimin-
, istiation. revealed in all the history
i of American railroading," Is the in
terstate commerce commission's char
acterization of Its findings in the in
fl veatigation of New Haven financial
affairs reported today to the senate
In a report of 30.000 words, prob
ably the most drastic in terms of any
iJ ever made by the commission, the
New Haven's directors were pro
nounced "criminally negligible' Evi
dence pointing to violation of law has
been transmitted to district attor-
m rove In Moccaf husotlc TJhndf Island
heff and New York and the federal de
!vorld partment of Justice
men,: A reasonable estimate of the lo68
f thj to the New Haven by reason of waste I
feet,: and mismanagement," says the re
port, "will amount to between $60, -GOl'J.'OO
and $90,000,000. Directors
t-hould be made individually responsi-
Mew AH the commission's stricture?
rdtn were on the management of the New
njtia. Haven system under former President
fast- Mellen.
Commend Present Management.
In Justice to the present manage-
art ment. the commission says it is but
r0ir fair to say that Chairman Howard Ei
ther liott and Wa,ker D H,ne8. special
counsel, "have co-operated with the
11 eu con mission and rendered It substan-
. ap-Vi rial assistance."
(eS f The report cites these "significant
h incidents".
"Marked features and significant
iiir iB Incidents In the loose, pxtravagant ad-
cs ac- ministration of the finances of the
- an New Haven as shown in this investi
pation are the Boston and Maine de
.i.erg spollment thp inequity of the Wcs;
in sy' Chester acquisition, the double price
jevel- paid for the Rhode Island trolleys:
t wJ the recklessness In the purchase of
take' Connecticut and Massachusetts trol-
iliein- ley at prices exorbitantly in excess
rnion- of their market value; the unwarrant
wJ ted expenditure of larg amounts in
lfi get- 'educating public opinion , the dispo-
mar sltlon without knowledge of the di
rectors, of hundreds of thousands of
son' dollars for influencing public scnti-
, & U ment the habitual payment ol vouch-
t era without any clear specification of
unde'i details, the confusing inter-relation
latins of the- principal company and its sub-
, .inoD- hldi..r1es and consequent complication
'a&cKi of accounts; the practice of financial
e wild legerdemain in Issuing large blocks
c, & of New Haven stocks for notes of the
ln'hH "ejt England Navigation company.
0jltl and manipulating these securities
hack and forth; fictitious saes of
h n I" Nev Haven stock to friendly parties
"e with the design of boosting the stock
and unloading on the public at the
S higher 'market price.' the unlawful
I diversion of corporate funds to po
1 Htical organizations; the scattering
j cf retainers to attorneys of five states
I who rendered no itemized bills for
services and who conducted no lltiga
tion to which the railroad was a par
t ; extensive use of a paid lobby in
i the senate; the investment of $400,
U00 In securities of a New England
newspaper, the regular employment
of poMtical bosses in Rhode Island
and other states, not for the purpose
of having them perform any service
but to prevent them, as Mr. Mellen
expresses it from 'becoming active
on the side, the retention of John L
Hillcrd for more than $2,700,000 In a
transaction in which he represented
Ihr New Haven and into which he in
vested not a dollar, the inability of
Oakleight Thorne to account for $1.
032,000 of the funds of the New Hav
en instructed to him; the domination
of all the affairs of this railroad by
Mr Morgan and Mr. Mellen and the
absolute subordination of all mem
bers of the board of directors to the
will cf these two; the unwarranted in
crease of the New Haven liabilities !
from $93,000,000 In 1903 to $417,000,
001) In 1912; the Increase In floating
notes from nothing In 1903 to approx
imately $40.000 000 In 1913; the in
defensible standard of business eth
ics and the absence of a financial acu
me.i displayed by flimflam financiers
hi directing the destinies of this rail
road in its attempt to establish a mo
I iiopoly of the transportation of New
England A combination of all these
has resulted in the present deplorable
situation in which the affairs of this
railroad are involved."
From the facts developed in the in
vestigation it will seem there Is lit
tle question concerning the recovery
of a substantial amount of the stock
holder's money that has been wasted
Several items of this nature are
briefly summarized.
Summary of Illegal Transactions.
Uerpaid Perry and Thorne in com
missions, $303,750.
Illegally spent In obtaining West
chester franchise changes $1,524.
072.77. In the Billard transaction $2,748,700
The money v ith which Billard ac
quired the 15. 755 additional shares of
common stock and 5826 shares of pre
ferred stock of the Boston and Main
Railway company was furnished by
i the New England Nagation com
I pany. This stock was turned back
to the navigation company for $3,087,
000. It would seem that a suit by
stockholders for the recovery of the
profit which Is justly due the naviga
tion company lf any was made by
Blllard in the transactions involving
' these additional shares, could be
"If any expenditures were made In
Nidation of anti-trust laws of the
United States are not such expendi
tures ultra-vires? and is it not the
legal obligation of the directors to
satisfy the stockholders out of their
own private fortune?
Detectives Unable to Throw
Any Light on the Nelms
Dennis Mystery.
Portland, Ore . July 13 Nothing
developed here today to throw light
on the mystery of the two missing
sisters, Mr6 Elolse Nelms Dennis and
Miss Beatrice Nelms of Atlanta, Ga,
Victor E Innes, former assistant
United States district attorney for
Nevada, who obtained a divorce for
Mrs. Dennis at Reno, Nev . and whose
I name has been connected with the
I disappearance of the two. refused to
j see anyone but his lawyers.
Counsel -for Innes said that his
client was weary of reiterating de
nials of knowledge of the sisters
! whereabouts or of having any busi
ness transactions with them. After
receiving a statement from Innes
late last night, the Portland detec
tive bureau decided it had no cause
to detain him
The police of various cities recent
ly began a search for the sisters at
the request of their mother In At
lanta, who received a letter, post
marked San Francisco and Bigned by
Mrs. Dennis, saying she hnd murdered
her sister and intended to murder her
brother in San Francisco.
London, July 13 The Earl of Elles
mere dlea today at the age of f He
. succeeded his father In the title in
1862 and his heir is his eldest son,
i Viscount Brackley, who was born
November 14. 1872.
Colonel Roosevelt, photographed at Progressive national headquarters in
New York city.
The picture of ex-President Roosevelt, taken a few days aro in New
York, shows the colonel looking considerably older than he looked before
leaving for South America. Teddy is still very active, however, and will
take a big part in the forthcoming campaign.
Drives Military Dirk Into Ab
domen While Posing as
a Beggar.
St. Petersburg July 13.- Details
reacned here today in a dispatch to
the Courier of a probably fatal attack'
on mystic lay monk. Gregory Raspkt
in, whose influence over the emperor
is said to be very great Raspktln
who has been most of the prominent
figures in Russia In recent years was
visiting his native village, Pokrovsky,
In the province of Tobolsk, Siberia,
when a woman, a stranger to the lo
cality approached him pretending to
be a beggar. She then stabbed him
in the abdomen with a long military
dirk. The woman was arrested and
, confessed she had waited two weeks
for the opportunity.
Doctors who examined the monk's
j wound declared it wa6 likely to prove
New York, July 13. As the begin
ning of a movement for the more
systematic extension of American
i foreign trade, Alba B. Johnson of
Philadelphia, president of the Nation
al Trade convention has announced
the personnel of the national foreign
trade council
James A. Farrell, president of the
United States Steel corporation, is
named as chairman and the council
I consists of more than thirty promi
I ntnt business men representative of
merchandising. railroad and steam
i ship transportation and finance. Rob
1 ert If. Patchln of Washington, D 0.,
1 is the secretary
One of the most enjoyable social af
fairs held by the local Owls lodge this
year was the celebration Saturday
night in the lodge room? with tbe
members of the Owls baseball team
as the guests of honor
The celebration began at 8 30 with
j a short program of speeches an-1
j songs, the latter being given by a
quartet composed of Charles Blair.
Frank Rose Berl Syphers and George
Welch Each number was loudly ap
plauded. For an hour or more after
the conclusion of the program the
lodge members and their friends en
i Joyed themselves in the billiard rooai
' and at the card tables.
In the meantime a committee coni
posed of R Whetstone, V. Orr R.
Shipley and W W. McDonald were
busy in the kitchen and dining room
preparing the banquet which was to
close the celebration. This was in
readiness at 10:30 and tho gue-Us
were called In. As a special feature
of the banquet, the ball players were
treated to a supper of mountain trout
given as a compliment to their prow
ess on the diamond by W D. Wat-
son, the lodge steward.
The ball players were seated on
.he south side of one of the long ta
bles aud when the trout was placed
in front of them they were envied
i all others present. The "others, "
however, were very 4t ell cared for by
the committee and Were made to fore
go their feelings of Ipvy when a large
varity ol" other vimds were given
them. The banquJf was made more
enjoyable by the dying of toasts by
Manager Chris Hen of the base
ball team, W D. Natson. and others.
The baseball teaft'is composed of
the follo.wlug tHyffk and Is consid
ered one of the best amateur "team
In the state:
H Greenwell and R. Greenwell, p.;
U Mumford. c; J. Owens, lb.. B
Folkman, 2b ; J Linon, 3b.. G. Mc
Beth. ss. i George Wall, utility, J
Peterson, cf. ; G. Callahan. If , W
Shipley, captain, and rt. Brown, sub
and C Hansen, manager.
The team is to make a tour of
northern Utah and southern Idaho
during Pioneer week
It was nearly the noon hour toda
when the case of the State of Utah
against Peter Dementre, charged
with mirder in the first degree, was
called for hearing in Judge James A.
Howell's division of the district court,
due to the fact that the attorney for
the defendant was delayed In reach
ing the court room.
In this ca6e the district attorne
ha concluded to have 12 Jurymen
rather than 8 which 1b the practice
In Utah with prosecuting attorneys
in capital punishment cases. It would
be legal under the laws of Utah to try
the case before only eight jurors, but
to avoid the possibility of a constltu
tional question the old number of Ju
rymen will hear the evidence and
pass judgment
The defendant Is a Greek and It Is
alleged in the Information that, on
April 29. 1914, at 141 Twenty-fifth
street, in a coffee house, he stabbed
to death one Nick Kargis, a fellow
j Greek, and the district attorney ex
I pects to show by creditable witnesses
that tbe defendant deliberately, in
j a fit of anger, stabbed Kargis with
a pocket knife, a number of times, ln
i lil ting a wound In the neck which
caused immediate death.
On the other hand, the attorney for
the defendant states that he expects
to show that Dementre was provoked
to the point of desperation when Kar
gis held a candle in his face and told
him to pray and also taunted him
over Greek affairs He says that it
will be shown that Dementre wa
holding the knife in his hand while
Kargis was bothering him and that,
in being pushed away as he approach
ed clotse to him. he stabbed him, fol
lowing up with the stabbing when
Karris furl her pressed his aggravat
ing tactics, but that he had no inten
tion of committing murder, and that
he really was only defending himself
Tbe attorneys say It will require al
the afternoon and perhaps a part o C
tomorrow to get a Jury.
Marburg Germany. July 13. - A stu
dent of the university here bled to
death after a duell with a fellow
student His jugular vein was sev
ered The duels usually involve a
few harmless cuts on the head and
Minority of New Haven Inves
tors to Institute Proceed
ing For Recovery of
J. P. Morgan Estate, William
Rockefeller, Ledyard and
Others Made Defendants.
Boston, July 13 Whipple, Sears
and Oyden. attorneys representing
minority stockholders of the New
York, New Haven and Hartford rail
road have demanded that tbe direc
tors join their clients in the suit to
recover about $125,0O0,0on alleged to
have been wasted by that manage
ment Suit, which it is said will be filed
this week to be directed against the
estate of J P. Moran, William Rocke
feller. Lewis Cass Ledyard and oth
ers who were members of the New
Haven directorate at the time that
transactions that h3ve been the sub
jects of inquiry by the interstate com
merce commission were made In a
letter to the directors made public
todaj . the attorneys refer to the tes
timony concerning New Haven In
eFtments which proved unprofitable,
brought out ny the interstate com
merce commission.
"We therefore in behalf our cU
"We therefore in behalf of our cli-
demand that you Institute proper le
gal proceedings to enforce the lia
! bility of directors to the corporation
v.bich we have pointed out, and such
other liability as may be disclosed
as a result of a careful and thorough
investigation of the company's af
fair? "
Hustis Awaits Official Word.
New York. July 13. J. H. Hustis,
president and acting chairman of the
New York. New Haven and Hartford,
stated today that until an official
copy of the report of the Interstate
commerce commission was received,
no statement would be issued by the
Robber Snatches Satchel as
She Leaves Wholesale Es
stablishment for Bank.
St. Louis, July 13. Mi6s Esther
Cohtn, cashier at a wholesale grocery
was robbed of a satchel, said to con
tain S8000, in a rush on a street here
Miss Cohen was on the way to a
bfink with the money when the rob
bery occurred. She had left the
wholesale establishment of her father
but a few minutes before when a rob
ber darted out from an areaway and
snatched the satchel He ran through
a hallway and disappeared
In Judge James A Howell's division
of the district court this morning, the
i following probate matters were taken
up and disposed of
Estate of George J Housley, de
ceased, petition for confirmation of
sale of real property granted.
Estate and guardianship of Vera
Luty. a minor, the petition for the
confirmation of the sale of real es
tate, granted
Petition for supplemental decree of
distribution in the matter of the es
tate of Elizabeth Boyle, deceased,
granted, and the executors reinsta
ted for the purpose of distributing
additional parts of lots which were
not distributed at the time of the first
settlement of the estate
The petition to sell real property In
the matter of the estate of Cajotain
Ducheneau, deceased granted
Hearing of the petition for final set
tlement of tbe estate of Ancelmo Go
Ql, continued for one week.
Estate of William D Van Dyke, jr..
petition for family allowance and for
order to redeem a mortgage, granted
The family allowance was fixed at
$25 a month.
Petition for letters testamentary in
the estate of Sarah Covington de
ceased, granted, and Ellen Maria
Shepherd and A L. Brewer appointed
executors under a bond of $5000.
Elizabeth Zlegenhirt was appointed
administratrix of the estate of her
husband, the late Paul Zlecenhirl,
and her bond fixed at $2000.
Estate and guardianship of George
Voss et al., minors, petition for ap
proval, allowance and settlement of
guardian s report and for discharge
as to George Voss and Christina Voss.
jsst ' 1
TBS Pm- ' -.xHHjtor
II wl Hbk '
Congressman Roberts.
In a solemn resolution to change
trr rules of the house, Congressman
Roberts of Nevada provides that
after routine business i3 concluded
on Fridays the public be admitted to
the galleries at regular theater
prices, and that any cabinet officer
or member of either branch of con
gress who has a Chautauqua speech
to deliver should be allowed to rid
I himself of the effort then and thera.
- .
i .
i Laborers Receive Rush Order
to Complete Gap Between
Capital and Vera Cruz.
First Train May Be Special
Carrying Dictator and
His Family.
Vera Cruz, July 13. Four hundred
laborers, acting under orders from
Mexico City, started work today re
pairing the tvomlle gap in the Mexi
can railway connecting Vera Cruz
i with the capital and the rushing of
the work ts believed here to Indi
cate a possibility that the first train
to pass over the repaired road may
' be a special conveying Huerta and
! bis family to the coast.
The gap that has been without ralh
since April 29 will be restored to
working order Immediately.
Business Men Generally Agree
on President's Plan of
Washington, July 13. President
Wilson today discussed business con
ditions with Raphael Herman of De
troit and Joseph G. Branch of Chi
cago. Herman said that, in his opin
ion, business men generally agreed
i that anti-trust legislation should be
put through at the present session of
congress and that business conditions
j generally were Improving.
Arthur Johnson of San Jose. Cal .
appeared at the police station at 1
a m. yesterday and applied for ' first
aid" treatment. His clothing was
torn almost to shreds and was soak
ing wet and he had been bitten by a
large dog
According to his story, he had pre
pared to sleep the cab of an engine
In the yards of the Utah Construction
company, but before he could put his
plan into operation he was discovered
by Special Officer Bennett, who ap
proached the engine with his large
white bulldog. The officer struck the
man on the head and ordered him
t get out of the cab He did so and
Bennett ordered the dog to attack
him. He managed to get the dog by
the collar and started to run out or
the yards holding him. As he tried
to climb over the fence, the collar
broke He then climbed a semaphore
pole and Bennett compelled him to
come down and again ordered the
dog to attack him Johnson again
managed to get the animal by the
collar and. running to Weber river,
Jumped into the water. He remained
there until he secured a promise from
fhe cfflcer to hold the dog while he
pfccaped Bennett kept his promise
and the California man made his wa
to the Ctt) and reported the affair
T E Bennett, the watchman, was
arrested by Sergeant Wohlman about
2.30 a m on the charge of keeping
a virious dog and was cited to appear
In court this morning He did not
npprar. however, but was represented
by Attornev W. Harcombe, who
asked and wag granted a continuance.
Plans to Transfer Government
in Peaceful Way Instead of
by Military Occupation.
All Hope of Peace Parley With H
Huerta Delegates Has
Been Advanced.
Washington. July 13 Mexico City lH
wns looked to today as the place
where the next big scene In the Mexl
can situation would be staged. With
Huerta about to quit and turn over
his affairs to his new foreign minis- jf
ler, Francisco Carbajal, hope was ex-
p'-essed that a way might be found ll
peacefully to transfer the government fl
to tho constitutionalists and avert IjB
military conquests of the capital by il
their triumphant forces.
Carranza has announced his unwil
lingntss to deal with Carbajal regard
ing him as the creation of Huerta
Nevertheless, it has been suggested jl
that parleys for the quick transition
jal appeared in the role of represent- B
atlve of a faction, rather than as pro- IH
visional head of a government which
tbe constitutionalists refuse to recog-
nize. Carranza it was declared. In- HI
tended to follow the "plan of Guada
lupe," which provides for military oc-
cupation of the capital. However. fli
several European and South Amer-
l lean nations, it was said, might frown 'B
j on such a course. They regard with
apprehension the possibility of fight-
ing in Mexico City and forceful as- IflSS
' sumption of power without some pre-
j vious guarantee to the populace. It
! has been strongly Intimated thai if
Carranza, after Huerta's elimination. 1
should Insist upon his original pro-
gram disapproval would be manifest- WW
ed by several nations They might Bra
refuse to recognize the constitutional- Krai
1st leader unless he showed a diBpos: HilS
tion to give some quarter nPfPy
Plan to Avoid Fighting. flawc
Indications were not lacking, how iHkS
ever, that a way might be found for 'KfraB
the transfer of power without much FBftjg
further fighting. Tbe impression pre- HBB
vailed widely In Washington that hos
tilltles in Mexico were near an end. Mgj
It was suggested that If arrangements PU
of peace were settled upon, Carranza t
could enter the capital with only a
comparatively small force to help pre- iH
serve order. The remainder of his
armies would remain at the capital's j
gates or either present headquart- 1
ers, to be dispersed upon the restora- I-
Mfvr nf neace. F
All hope of any parley between rep-
j resentatlves of Huerta, who took part
I In the Niagara proceedings and the
, constitutionalists upon the basis pro- f
I posed by the South American envoys. i
practicallv has been abandoned. Car- ft
! ranza has" not formally replied to the
mediators' proposals but official mes-
sages from his headquarters at Saltil-
lo have Indicated what his reply S
would be. General Villa was reported f
to have received a message from Car K
ranza. asserting offers of mediation
by the South American envoys id
Mexico's internal affairs would not be
accepted Carranza was quoted as ;
saving the only thing he would ac- '
cept was the surrender of Huerta and I I
his army. jfl
Huerta, it was believed, might quii .g
Ctaapultepec some day this week. Au M
tomatically the new foreign minister, K
Francisco Carbajal, would assume the
roie of provisional president.
Carbajal Man of Law.
Carbajal Is a man of law. He la &
le.- than fifty years old. Of an f
I , j vo novor has E
acaaemic aBpnruuvvii &
1 perved In the army. He came into
' international prominence as the en- I
vov of Diaz at the Juarez peace con- I
ference In 1911, after the Madero rev
olution. L
few weeks ago he was elected g
chief justice of the republic's su
preme court, after serving several
years as associate justice He receiv- k
ed bis education in Mexico. His is i
said to be of a conciliatory disposl- k
tion anxious for the restoration of or- m
der and not lkely to elect to resist
j with an army the approach o. me i
; constitutionalists I
f. oo I
Expects Names of Jones and I
Warburg to Be Confirmed
By Senate.
Washington. July 13 President ,
Wilson today denied that there was -, .
anv conflict between him and tlU' r
senate over the nominations of raul s
arbUTg and Thomas D. Jones. as t,
members of the federal reserve F. .
hoardF In talks with callers, he de- .
dared he was working in complete ..
harrronv with the Democratic major- c
ity in the senate with only one or t o t '
exceptions. Mr Wilson said he had - I
definite assurances Mr Jones would f
be confirmed. He did not rtwcuaa p ..
the etise of Mr. Worburg. except to '
ay that he thought the senate as a
whole would be perfectly fair.
oo rr
Wimbledon. July 13. France was f
the winner of today's doubles mstcH
against Great Britain in the prelim-
inary competition of the Dwjgul a. I
Davis cup H

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