New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-05-03
CLASH At P. S. HEARING
Me|Ien and Untermyer Have Tit
Over Rutland Purchase.
CHARGE OF UNFAIRNESS
Lawyer Says Minority Stock
holders Are Treated Worse
than the Majority.
rRv Telegraph ~ The Tribune

fPv Telegraph ~ The Tribune
Albany. NAV president Mellon ~ the
New York. New Haven 6 Hartford Rail
road was witness before the Public Ser
vice Commission here this afternoon At tn"
hearing Of the application or the New
Haven to acquire control of tho Rutland
Railroad. He was suhpoenaed by Samuel
Untermyer. who is opposing the applica-
ton 40 the representative Of the holders OF
1000 shares Of the minority stock on the
ground that the same treatment is not
accorded tho minority stock holders In the
transfer as the majority. Tho New York
attorney showed no small amount Of bitter
ness in examining the railroad president,
while President Mcllcn was defiant In his
replies.
The witness said that n" was not willing
10 take tho minority stock for tho same
price as the majority. and that he was not
even willing 10 put his intentions in the
form of an obligation. lie said he was
willing 30 recommend 3 per cent Guaran-
tee on the stock. but he would not advise
the minority stockholders to accept It,
Mr.. Tntermyer declared 10 the commas
sion aftcrward that the time was coming
when A railroad official. no matter how
powerful would have to satisfy minority
stock holders with something better than
his Intentions. even il he did say they were
good ones. He expressed the opinion that
legislation would soon be enacted If minor
lty stock holders did not have fair deal
in the future He added that the New
Haven had acted In bad faith. and not
withstanding the case now pending had
actually made arrangements 10 take con-
troll OF the road. Although five months had
elapsed since the New Haven had bought
| one-half OF the majority stock from the
New York Central, he said 1t had done
nothing to undo the unlawful act in taking
| this stock.
The Public Service Commission recently
denied the application Of the New YORK
! Central road to acquire from the New
/ Haven the New York. ontario & Western
! Railroad. II was declared In the decision
! that the minority stockholders OF the On
! tario would have 10 be properly cared for
! and Mr.. Untermyer holds that the same
proposition IS involved I'm the present ap-
, plication.
During the hearing James e. Colgate, Il
| New York broker. who owns Loo minority
! shares Of the Rutland. but who faoors the
| application. got into a heated Discussion
/ with Mr.. Untermyer. The former smphati-
| cally denied what he termed Mr. Inter
! myers 'inslnuation" that he mad been uur-
! chasing Rutland stock for interests con
nected with the New Haven. and charac-
/ tcrized the present opposition OF minority
! stockholders as "hold-up.' Mr. Inter
mver repliod that this Characterization was
Infamous" President Mellen. who sat
near by, said that neither he nor any d.
/ rector Of the New Haven had taken or at
/ tempted TO got single share Of tho minor
/ ity stock.
4 delegation Of two hundred prominent
residents OF Vermont and Northern New
York appeared for the application. The
INermonters werc headed b. Governor John
/ 4 Mead and PercIysl W. Clement, Mayor
Of Rutland aud president ~ the Rutland
road from 1853 TO 1907. These men presented
petitions from village boards. commercial
bodies labor organizations. shippers and
citizens. containing several hundred sigma
turcs from score ~ cities and towns
along the line Of tho Rutland road In New
York and Vermont. all fayoriug the grant
ing Of the New Haven application. They
declared that control by the New Haven
would mean an increase Of traffic which
would amount 10 $4,000 yearly
Tho commission announced that the case
va, finally closed and reserved decision.