The Bridgeport evening farmer., 1913-05-02
NEW HAVEN'S PRESIDENT ON THE STAND
Contributions Were Made to National and TO-
Connecticut, Rhode Island and New York
Republican Funds, Coming Personally
from MeIIen, But Returned TO Him
Through Profits from Stock Deals

Boston, May president NEeuen, of
the New York, New Haven & Hart
foard Railroad, appearing in his own
defense before the Interstate commerce
commission today, gave an unexpected
explanation Of some Of the figures on
the New Haven books.
According to the government expert
accountant, David e Brown, there ap-
peared an apparent profit made by Mr..
MeIlen personally by trading in the
stock of the railroad company Of $102,
O00. The first thing MT. Mellen did
when he took the stand was to de-
clare that the money in question had
been used in political contributions in
1904. Fifty Thousand dollars went to
the Republican National can align
fund and other amounts to "a
publican State campaigns II Nr r
York, Connecticut and Rhode I'd.
Mr.. AIellen advanced the nc "a
the railroad company reimburE.
He af11as1e this statement: ne
traneaetiens by which 1885 shard of
New Haven stock were sold to me took
place in March, 1904, and I gave my
Company.
<TThis stock was treasury stock and
had tosbe listed on the stock exchange
in order to be sold to the public.
Tn order to list it, it was sold to
me and I gave my notes to the com
era1 until sold.
"A1l these shares were sold at the
best obtainab BILE prices and the entire
proceeds together with the dividends
paid to the company's treasurer. The
company received approximately $102,-
900 more than the price at which the
stock was sold to me.
'~Phe transaction was bona fide and
at the time it was made without any
expectation that any excess over the
selling price to me would be realized
Between the time of the sale to
me and the closing of the transaction
I had personally disbursed out of my
own funds considerable amounts ex-
ceedfng in the aggregate the sum OF
$102, 900.
These expenditures L had made not
for my own purposes or In any way
for my personal advantage, but abso-
luteIy because was president of the
New Haven Railroad.
SAT that time, 1904, corporate contri-
buttons to campaign funds were Gus
tomary and not Illegal.
such contributions have not been
made since 1904 by the New Haven
Railroad through me or, SO far as I
know, through anybody else.
I'm 1904, I contributed $4,000 to the
National campaign fund, |
in New York, Connecticut
and Rhode Island.
among these, $500 was transmit-
ted through Mr.. Buckland.
Because was president of the New
Haven Company, had been con-
strained to make these disbursements
out of my private funds which, as a
private Individual, never would have
made.
''On the closing up Of the sale of
.hese stocks, it appearing that an un-
expected profit had been realized, my
h26n cORnlZanf OF
ny contributions for these purposes,
thought it proper to make me this al
Owance
'.I never personally received or re-
aimed one dollar to my own profit or
+4AII the transactions were fully ex-
planned to the auditing committee and
we're satisfactory to them as expen-
litures in furtherance of the COM
,any's interest and protection Of, its
property"
Replying to Commissioner Prouty
1r. NfeIIen said that none of the
money disbursed by the road had been
sed in an underhand way. Vice-Pres-
dent E. S. Buckland, of the New Ha-
-en. volunteered the information that
$500 of the fund was turned over to
he Republican State central commit
ee of Rhode Island on Sept. 30, 1904.
Mr. Mellen added that not all of the
um mentioned was used for campaign
a part of it having been
pent in the acquisition of pier leases.
President Mellen next explained a
ote transaction in 1906. He said:
transaction in March, 1906, by which
:, ,O64 shares Of New Raven stock were
old to me and I gave my note:
''This stock was also treasury stock
t was sold to me March 26, 1906, and
gave my note and the stock was !
eld by the company collateral. :
1.-The stock was sold from time to ,
lme and the entire proceeds and divi- ,
ends made directly into the treasury
E the company ON account of my note :
IN June 80 1906, more than $4,000
hares remained unso1d and the mar
ct price OF the stock had risen several
ointS