The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1913-07-18
MELLEN STEPS OUT
FROM HEAD OF
new HAVEN
sYiEHIiSz9T - MiEk zlsEW
His Resignation to Take Effect
October |
MAS ASKED TO RECONSIDER
Urged by Members Of the Executive
Board to Withdraw ..
Resignation

tcruay IenueTeu MS resignation as
president of the New York, New Ha-
ven and Hartford railroad company
and all its allied or subsidiary lines,
including the various railways, trolly
roads and water lines which had be-
come part of the New Haven system
under his management. Announce
ment of Mr.. Mellen's resignation,
which is to take effect Eat the pleas
ure' of the New Haven board. but
"in no event later than October LIST
net followed long and earnest
melting of the directors most of whom
including William Rockefeller and j..
p. Morgan, were present
The brief announcement of Mr. Mel
lens proposed retirement couched in
less than two-score words was the
only official statement issued. None
OF the directors would supplement it
by so much as a word, and Mr.. Mel
len steadfastly denied himself to all
interviewers. 1t is understood thai
some of the more prominent mem
bers of the board earnestly urged Mr.
Mellen to reconsider his action, but
apparently without avail. In railraod
and financial circles Mr. Mellen's de
cision will excite no surprise. In
fact, during the day in Wall street
and elsewhere ii was generally ex-
pected that the day would mark vir-
tually the end of the Melen admins
tration.
Charles Sanger Mellen, whose re-
cent administration of the New Hav-
en- road has given rise to consider
able criticism, became president of
that system in October, 1903, resign
ing from the presidency of the North
ern Pacific railway, Hill road, at
the request of the late j. II. Morgan,
who regarded Mr. Mellen as the man
best fitted TO reorganiEe the more or
less chaotic lines of the New Eng
land states. Mr. Mellen's predeces-
sor. John NJ. Hall, had managed the
road with all the conservatism which
marked the administration of corpor-
ats affairs. especially in New Eng
land, during the previous decade. Mr..
Mellens advent was the signal, how
ever, for vast scheme of consolida-
ton, embracing not only the Boston
and Maine and Maine Central rail
roads. but all the leading steamship
lines between New York and Boston
and intermediate points as well as
numerous trolly lines in Connecticut,
Massachusetts and New Hampshire.
The capitalization of the New Hav-
en- system increased under the con
tinous OUTLAWS accruing from the ac-
QUESTIONS which later included the
New York, Westchester and Boston
railroad Other acquisitions which
helped to increase the New Ravens
burden were the New York, Ontario
and Western and Rutland railroads.
The steady decline of New Haven
shares in the New York and Boston
stock markets has ben matter of
comment for several years New Hav-
en- shares. which for many years sold
at and above 200 and for a long per
iod paid dividends at the rate of S
per cent, recently sold under par in
anticipation of cut in the dividend,
which was reduced to per cent
Alleged mismanagement of the
New Haven road and several serious
wrecks costing lives finally resulted
in definite action, and a committee OF
New England stockholders. led by
George Won l.. Meyer former secre-
tary OF the navy, was organized to
make an investigation of the roads
affairs That committees experts
are now at work on the company's
books, but its report may not be
known for several months. Mr.. Mel
len is now under Indictment in the
federal courts for alleged violation of
the antitrust laws and an indictment
OF manslaughter resulting from the
Westport (Ct) wreck of last year is
also hanging over him. II was ex-
pected that the New Haven directors
would yesterday take up the findings
and recommendation of the inter
state commerce commission. which
recently scored the MANAGEMENT not
only for its methods OF operation but
for its financial methods as well. Ac-
cording to Mr. Mellen's report. how
ever all consideration of these mat
ters was deferred.
IL is known that an influential fac
tor in the board favors the sale OF the
company's water lines and many. IL
not all OF its trolly roads. So far as
II can be reasonably accomplished al
so II is believed that the New Haven
will relinquish control Of the Boston
and Maine road. According TO an er-
massive examination made by the
New Haven system. its assets are es
tlmated at close to $500. 600 GOO
against liabilities Of 1894. GOO. 600. an
excess OF assets over liabilities Of
more than 500. 100000.
Mr.. Mellen's retirement will omen
the way TO much conjecture regard.
ing his successor. The name most
frequently mentioned In this connec.