The Birmingham age-herald., 1913-07-18
Will Take Effect at Pleas
ure of Board, "NOt Later
Than October L"
MELLEN'S DECISION
EXCITES NO SURPRISE
Alleged Mismanagement and Disas-
trous Wrecks Finally Result in
Definite Action-ElliOtt Is
Mentioned as Successor

New York, July 17.--Chares 5. Mellen
today rendered his resignation as president
of the New York. New Haven and Hart
ford Railroad company and all its allied
or subsidiary lines, including the various
railways, trolley lines and water lines.
which have become part Of the New
Haven system under his management
Announcement of Mr.. Meflen's resigna-
ton. which is to take effect 'at the pleas
| use" of the New Haven board, but lin no
event later than October I next" followed
long meeting Of the directors, most Of
whom, including William Rockefeller and
J. 2. Morgan, We're present
The brief announcement of Mr., Mellen S
proposed retirement, couched In less than
SO words. was the only official statement
issued. None OF the directors would sup
plement it by so much as word, and
Mr. Mellen steadfastly denied himself to
all interviewers.
1t is understood that some OF the more
prominent members of the board earnestly
urged Mr.. Melen to reconsider his action
but apparently without avail. la railroad
and financial circles Mr.. Mellen's decision
will excite no surprise.
Came to Road in 1903
Charles S. Anger aellen, whose recent
management of the New Haven road has
given rise to considerable criticsm, be-
came president Of that system in Octobe.
| of 1903, resigning from the presidency OF
the Northern Pacific railway 1T tHe re-
quest of the late j. p Morgan, WAC re-
garded Mr. Mellen as the man best lifted
| to reorganize the more or less chaotic
/ 4 Of bsa nd
states.
Mr. Mellens immediate predecessor,
John NJ. Hail. had managed the road with
all the conservatism which marked the
administration Of corporate affairs, es-
pecially in New England, during the pre-
vious decades. Mr. Mellens advent was
the signal for vast scheme of consolida-
ton embracing not only the Boston and
Maine and Maine Central railroads, but
| all .the leading steamship lines between
| New York and Boston and intermediate te
points, as well as various and numerous
trolley lines IN Connecticut, Massachusetts
land New Hampshire. The capitalization
of the New Haven system increased enor
mousy under the continuous outlays ac'
eruing from the acquisitions.
| The steady decline Of New HaVer
| shares in the local and Boston stocl
markets has been matter of comment
| for several years. New Haven, which
! for many years sold at and above zoe
and for long period paid s per cent
dividends recently went below pai
| in anticipation of a cut in the div
idend. which was reduced to 6 per cent
The Final Straw
Alleged mismanagement of the New
Haven road and several serious wrecks
costing many lives, finally resulted in
definite action and a committee of New
/ England stockholders, led by George
| Won L. Meyer former Secretary OF the
! Navy. was organized to make an in
vestigation of the roads affairs. That
committees experts are now a work on
the company's books.
Mr.. Mellen is under federal indict-
ment for alleged violation of the anti
trust laws and san Indictment for man
slaughter resulting from the Westport,
Conn., wreck, also is hanging over him.
1t is known that an influential fac
tor in the board favors the sale of the
companY's water lines and many. If
not ALL of its trolley roads IT IS be-
lieved the New Haven also will relin-
quish control of the Boston and Maine
road.
According 10 an exhaustive examn-
alton made by the New Haven system
Its assets are estimated at close to
$500, 100000 against liabilities of s394.-
100000
Mr.. Mellens retirement win open the
way to much conjecture regarding his
successor. The name most frequently
mentioned in this connection is that Of
Howard Elliott, head of the Northern
Pacific road. from which Mr.. Mellen
resigned to accept the management Of
the New Haven.
Resignation rendered
The text of the formal statement
announcing Mr. Mellens resignation is
as follows
MIR. Mellen at a meeting of his
board of directors today rendered his
resignation of the presidency of the
New Haven road and all its subsidiary
companies. to take effect at the pleas
ure of the board, but in any event not
later than October 1, 1913"