The Bridgeport evening farmer., 1911-09-19
MELLEN HAD.
FULL SUPPORT
Purchase of Westchester Road
Not Originated by Him
Board Approved it
HARMONY WITH DIRECTORS
Why President Did Not Secure Con-
-rol of Lehigh Coal and Nayiga-
ton Company.

Boston, Sept. ia special dispatch
to the Transcript from New York says
it is likely that at the meeting of the
New Haven roads directors, schedul-
ed for Boston, Sept q. the suggestion
will be made by some Of the directors
that stepsfbe taken to quiet as far as
possible the talk of a reduced dividend
with view. to reassuriHg stoekhold-
ers. u
"A conference of few directors has
already been had with view to TAX
ing some such steps. One director
particularly active in this matter is
a rstaunch & friend of Mr., Mellen,
though differing with him in respect
ts some of the policies which the New
Haven has pursued since Mr.. Mellen
became tho head. Mr.. Mellen has al
ready said that he sees no reason on
the basis of present conditions Why
the dividend should be reduced
The directors interested in this plan
to reassure stockholders see no reason
to doubt this claim, but would prefer
(. to see the situation reduced to hg-
ures It is said that before declaring
the last dividende all thought the ac-
counts did not show it fully earned.
Mr.. Mellen convinced the directors
that sources Of earnings, which jhad
not yet been taken into the accounts
would fully cover the deficiency, and
it was on this assurance that the div
idend was declared The question of
reducing 1t was not considered.
1t was pointed out that the issu-
ance of bonds against the Westches-
ter property wills give the New Ha-
ven a source of income, which hereto
fore has yielded nothing, and there
are said to be other investments
which will also begin in the near flu
ture to add their quota to the New
Haven.
HOPE REPLACES ASSURANCE.
Some of the more cautious directors
are now expressing the hope that the
dividend will be maintained who up
to this year have freely EXPRESSED a
dend was assured. This position Of
caution on their part is the natural
result of the large obligations which
the New Haven has assumed in con-
nectfon with it's policy of expansion
and OF the fact that it's net income
has not increased in anything like the
proportion in which it's bonded obli-
cations have been enlarged. Empha-
sis is being laid on the fact, as one
of the directors puts it, that the as
sets of the New Haven are far greater
today than they have ever been in
the past, not only actually, but rela-
lively, since the excess of. it's assets
LUZ It's OO1ledtIOHS 10 larger AOW IMAM
at any time in the past.
ONE DIRECTORS VIEWS.
This is the view of a director who
was not in entire sympathy with the
New Ravens acquisition of practi-
cally all of it's competitors in New
England. It was his feeling this d.
rector says, that it was rather the
duty of the, board to sustain the earn
ing power of the property than to in
crease it's value through acquisition.
To this extent he thinks Mr.. Mellen's
policy has been a mistake, but the
board has fully supported the presi-
dents policy and there has at no time
been any disagreement. only individ-
uaL differences OF opinion which nee
essarily arise among men of indepen-
dent judgment.
This director denies the rumors that
Mr.. Meilen committed the New Ha--
ven to the purchase of the Westches-
ter & Boston WITHOUT the previous
approval of the directors. He says
the acquisition was not initiated by
Mr.. Mellen. The property was pur-
chased with his approval, but not at
his SUGGESTION