LATE CABLES. A RAILWAY SCANDAL.

Sun (Christchurch), Volume I, Issue 135, 14 July 1914, Page 10

LATE CABLES.

A RAILWAY SCANDAL.

CLAIM FOR TWENTY-FIVE MILLIONS. SHAREHOLDERS SUE DIRECTORS. ALLEGATIONS OF W HOLES ALE GRAFT. By Cmble.—Press Association. —Copyright. (■Received July 14, 2.25 p.m.) NEW YORK, July 13. A minority of the shareholders in the New York-Newhaven-llartford Railway Co. are ,suing Messrs William Rockefeller, J. P. Morgan, Lewis Ledyard, and the other directors, claiming the sum of £25,000,000 on the ground of mismanagement of the railway's affairs. The Inter-State Commerce Commission recently examined the company's affairs and reported that the directors were criminally negligent and had violated the law frequently. They had purchased rolling stock at a price three times exceeding its value, and had reported li 'titious sales of stock. They authorised the expenditure of huge sums for the purpose of influencing public opinion through newspaper bribery and illicit political activity, including tlio bribery of legislators and the profligate use of free passes.

The Commission found that there was evidence of corruption on a wholesale scale. '