The Bridgeport evening farmer., 1913-05-08


 special correspondent in Washington which prevails what it's correspondent ayers to be authoritative information concerning the Westchester deal the Morse steamship deal, the B. & M purchase, and the Rhode Island trol- 1eys.
 The dispatch tells that former Pres ident Roosevelt, when at the White House, was g. chief factor in prevent ing Morse from acquiring the Fall River line from the New Haven, and that on the strength of a visit of Mel len to the White House, when he caused to be refreshed the mind of the President relative to the Morse transaction, the prosecution begun against the New Haven, for maintain ing in restraint of trade steamship lines competing with it's railroad lines, was suddenly dropped.
 Part of the dispatch is as follows:
 Here are some fresh revelations cNp- cerning high finance operations given authori itativeIy to The Evening World: |:
 The Westchester deal: President Mellen opposed the New Haven partic- fpating in building the costly West chester Railroad in the northern sub urbs of New York city. One day in 1907, when the panic was on, Oak leigh Thorne, president of the Trust Company of America, informed Presf- dent Me1len that he had control of the Westchester project and offered 1t to the New Haven MT. Mellen said he did not want it.
 Thorne asked him to submit the proposition to the directors Mellen said that of course it was his duty to submit important propositions to the executive committee, but that it would not result in anything To hds amaze ment the committee voted in favor or Thorne's proposition. The New Haven treasury was obliged to put up S11, 00O,- GOO. which relieved Thorne and the Trust Company of America Of Ure- mendous financial burden that was nearly breaking them. Just at that time the Steel Trust deal in Tennes- sec Coal & Iron stock was being car ried on.
 The question has been raised by per sons familiar with the cond1tlons whether the Westchester millstone was a part of the price in the tennessee transaction.
 rThorne and his associates wanted to be relieved of the Westchester burden Morgan and his associates. wanted the Tennessee Coal & Iron Company for, the Steel Trust A trade was made sr1,e nrof7ta.b1e Tennessee Coal & Iron Company he gave to the Steel Trust. The unprodtab1e Wiestchester was sad died onto the New Haven, which did not want it.
 Today the Westchester Railroad IS costing the New Haven Company 3D. o0o. GOO per annum net, which is just about the amount of reduction in the New Haven dividend which will be made at the next directors meeting. If New Haven had not been saddled with the Westchester road by orders of J. F. Morgan, the dividend would not be reduced.
 The Morse Steamship deal: When Charles w. Morse was trying to form his combination of coastwise steam ships in 1906 and 1907 he offered the New Haven road $20,O0o,0OO in cash and good securities for its Sound lines. The steamers were worth SIP, ,OO0,o ,o00s but Morse figured that the trademark Fall River Line'' was worth the diff ference.
 President Mellen reported to New Haven directors in favor of accepting the offer. To make sure of his ground he went to Washington and consulted President Roosevelt, just like Judge tGary of the Steel Trust did in the Tennessee deal, because the Bureau of Corporations had been making an in vestigation of the New Haven's Nrela- tions between railroad and steam ships.
 Herbert Knox Smith, Commissioner of Corporations, and members of the Interstate Commerce Commission were present at the interview and notes were taken by MT. Smith. Roosevelt finished the interview by  not let Morse have these steamships. ' That White House decision was the principal factor in the breaking of i Morse. Added to it was the sentiment tai view taken by New Haven direc- tors of the company that New Haven always had owned Fall River line and they would not like to see it lost. Within a year MT. Roosevelt and MT. Me1len fell out. Attorney-General Bonaparte launched a prosecution un- der the Sherman Antitrust act against the New Haven, one of the principal counts being that it restrain ed trade by owning steamship lines that competed with its railroad lines.
 MT. MeIlen again visited the White House, this time in very formal manner. He protested against being prosecuted for operating the steam boats when MT. Roosevelt had forbid den him to sell them to Morse. There was dispute over veracity. Herbert Knox Smith was sent for again, the notes of the previous conference were read. MT. Roosevelt acknowledged the facts. That was why prosecution