Daily Kennebec journal., 1913-05-02

BDSIOfl, MAY
Meilen of the New York, New Haven
& Hartford Railroad will make a state
ment explanatory of some Of the com
pany's financial transactions before
the Interstate commerce Commission.
tomorrow.
Announcement was made, today,
that Mr. Mcllen would not be sworn
and Commissioner Prouty. who is con-
dreting the inquiry into the affairs OF
the New Haven system will not permit
him TO be interrogated
So far as testimony was concerned
today, was given over TO the continued
cross-exanlination of David E. Brown.
the government accountant, by Nj
Mellunis counsel, c. F. Cnoate. Jr. In
reality, a large part of the time was
consumed in arguments between MI
Choate and Commissioner Prouty, dur
ing which the commissioner severely
criticized the Railroad and some OF its
officials for transactions, which, in the
opinion of the commissioner We're moi
satisfg etorily explained b. the records
Of the company.
Various notes given by mr. Melien
to the New Haven Co, in exchange
for New Haven stock We're explained
by his attorney, through the experts
answers as having been paid in full.
and although Mr.. Brown and Commits
sioner Prouty agreed that the book
keeping methods of the company indi-
caied that Mr. Melien had made
proat of $102, 900, the commissioner
said that he had no doubt Mr.. Mellen
naid the company but he wished
fuller explanation of the transaction
than Mr.. choate was able to bring out.
Technicalties of bookkeeping were
taken up to indicate that an aggregate
of s7,4i5,s25 for additions and better
ments had been charged against profit
and loss, during the four years, end
ing June 30, 1872 These charges Mr..
Brown said. might properly be made
against capital. The profit and loss
balance of the New Haven Road, on
June 30, 1912, was $12,575,471 and had
the betterments and additions for the
four years been charged against capi-
tai, the profit and loss balance "on
the right side of the ledger" would
have been nearly $20.000,090, according
10 the witness.
The acquisition of the Boston & Maine
by the New Haven and the dealings be-
tween the New Haven and J.. l.. Billiard
and the Billiard Co. were considered by
Mr. Choate in an attempt to show that
the transactions had been misrepresented
in the direct examination of Mr. Brown
and that Mr.. Billiard did not make
profit Of s2.7oo.0O0 on the deal. as the di-
rect testimony indicated. -
Mr. Choate's explanation was left un-
finished. as the course of the examina-
ton precipitated two or three discussions
between the railroads attorney and the
commissioner. The first was over the
value of stock assets carried on the
books OF the company.
You are now carrying New Haven
stock at $50 a share" said Mr.. Prouty
tIt is not worth it. You carry Boston
& Maine stock at what you paid for it;
It is not worth it,
Mr.. Choate replied that Old Colony
stock which Is carried on the New Ha-
ven's books at par is really worth about
se000,00o more than is placed against it.
When the transfer of 109,94S shares OF
Boston G. Maine stock by the New Haver
to ]. L. Billiard at $25 a share for $11.0oo,
00O in cash and notes was being consid
cred. Commissioner Prouty said:
do you understand, Mr.. Choate. tina
Mr.. Billiard had ever invested any actua
money in the gold notes of the New Eng
land Investment and Securities Coz"
mot to my knowledge" said the law
yer.
Commissioner Prouty declared that MI
Billiard had not put up any actual none
Sx. he e.
stock transfer and that there was ever
Indication. according to the records, tina
he had made a profit varying from 81
100000 to 81. 100000. 80
What on direct exanina ton ap
reared to have been a $500 profit t
Mr. Mellen in connection with the sal
Of stock of the Providence Sccuritie
Co, was explained Mr.. Ghoate sait
when the matter was reached, ;oaaA
by a certain entry on the looks. Wit
ness Brown did not have the item an
Mr.. Choate commented that the exam
iner had gone through the books an
had appeared here With sonie ir
fernsat ton from which hostile infs,
enees are drawn This LEFT Mr.. Me
len in an unpleasant situation in III
eyes of the public, he said.
THAT has been the trouble with q
of this case the lawyer continue
With reference to all these transat
tions there IS supplementary eyiden.
which will put them in the right light
I'VE are not prosecuting anyone
replied the comm .ssioner. I'VE al
trying TO find out what has been der
with certain money"
Mr.. Choate said that if the exau
iners had asked the proper otlicia
they wcpld have obtained the desir
information. The commissioner rcpli
that the proper accounting officials Ii
been asked for explanations and I'll
ii was not the province of the .xal
iners to Interview The higher offici;
relative to transactions which shot
he explained by the auditors.
Mr.. choate then said that the rs
road had not been treated fairly a
thar Louis d. Brandeis. who condu
ed tile direct examination. and his
eisfant. Mr.. Eastman, had been 81,
an unfair advantage. Commission
s'routv denied the charge with pc
tiveness He reviewed the vari'
sfepa IN the Investigation and decl
ed that the New Haven ofticials W
given The same opportunity to eya
ire Mr.. rrovn's findings as MIR. Br