The Birmingham age-herald., 1913-05-03
Takes Up Charges Against
Transactions of His
Company
READY REPLIES TO
PROUTY'S QUESTIONS
Testifies That $4,000 Was Paid Into
Republican Campaign Fund in
1904-$650O Given TO Rhode
Island Fund

Boston, May Am unqualified defense
of his stewardship was made by Charles
$. Melen, president of the New Haven
Railroad company before the interstate
commerce commission today.
Taking up charges brought against his
management and various transactions in
which the New Haven or it's subsidiary
companies have figured the president
gave his explanation of the questions
involved.
While replying readily to questions of
Commissioner Prouty and Charles f.
Choate, Jr., his personal counsel Mr..
Mellen refused to submit to cross-e exam
ination by others. He appeared as a vol
untary witness, his testimony was not
given under oath and it was explained
to him that the information given by
him today would not render him immune
from any prosecution the federal gov
ernment might undertake.
At the outset President Melen said
he had profted personally to the extent
of 100000 by selling 100000 worth of
stock of the New Haven company, for
which he had given his notes He said
that $4,000 of the money in question was
paid into the republican national cam
paign fund in 1901; that $500 went to
the Rhode Island republican state CEN
trail committee, other sums to the re-
| publican organizations in New York and
Connecticut and the balance for pier
leases and other acquisitions
Expense Money
Mr.. Hellen said the only money that
had come to him personally was to reim-
burse him for expenses contracted in
the conduct of the companys business
An apparent profit of $27O0,oo0 to John
l.. BILLIARD, for his part in the acquisi-
ton of the Boston and Maine by the
New Haven was dwelt on by Mr.. Mellen.
who said that the commission account
ant, David T. Brown, had testified about
the transaction on the assumption that
the book value of certain securities rep
resented their value when as a matter of
fact their actual value was much less
He also declared that the contract un-
der which the New Haven turned over
Its parlor and sleeping car service to
the Pullman company was the best con-
tract Fhat any railroad company ever
made with the Pullman people.
President Mellen appeared as a volun-
tary witness and Commissioner Prouty
would not permit him to be sworn or
cross-examined lest the witness might
later claim immunity in federal proceed
ings now under way
Replying to Commissioner Prouty Mr.
MeIlen said that none of the money dis
bursed by the road had been used in an
underhand way.
He added that not all of the sum mem
toned was used for campaign purposes. a
part of it having been spent in the ac-
QUESTION of pier leases.
President Mellen then said the New
Haven was now under great expense con-
structing bridge over Hell Gate to en-
able its trains to enter the Pennsylvania
station in New York and make possible
through trains from New England to
southern points. He said that the Pull
man contract furnished his road with
steel cars which are acceptable on the
Pennsylvania lines. As soon as the Hell
Gate bridge is finished through trains
will be run between Boston and New Or
leans, and other southern cities, he de-
clared The Central New England rail-
road acquisition was a splendid invest
ment for the New Haven, the witness
SAID. lie quoted HgureS 10 SNOW tnat the
Central New England pays to the New
Haven annually go per cent of its net
cost.
Regarding Rutland Stock
Regarding stock of the Rutland rail-
road held by the Navigation company,
Mr.. Melien said the New Haven wanted
that road to obtain a through line to
Chicago and other ports on the great
lakes, so as not to be dependent on rates
charged by other lines.
He protested that comparisons made by
the government accountant between. de-
probation charges of the New Haven and
those of the Southern. Baltimore and Ohio
and Louisville and Nashville were unfair
because conditions differed.
For instance, he said, these three roads
used water which had an injurious effect
on their locomotive boilers. condition
the New Haven does not have to face.
President Mellen said at present the
New Haven is composed of 16 operating
companies and the total of subsidiary or
ganizations exceeds $50, which are being
eliminated more rapidly and faster as
they become obsolete.