The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-05-02
New Haven President Gave to
Republican Cause.
EXPLAINED ENORMOUS PROFITS
Government Asked Mellen for
Stock Trade Facts.
More Than 100000 to Boost
Along Campaign.

Boston, May 2.-President Mellen
OF New Haven railway, explaining the
apparent profit made by him of s1O2,-
600 by the sale of the New Haven
stock in 1904, told the interstate
commerce commission today that the
money had been paid back to him to
reimburse him for contributions to the
Republican campaign fund of that
, year.
President Mellen appeared before
the interstate commerce commission in
his own behalf. According to the gov
ernment expert accountant, David Il.
Brown, there appeared to be an appar-
ent profit of 100000 made by Mr.
Mellen personally by trading in the
stock of the railroad company.
The first thing that Mr. Me1len said
when he took the stand was that the
money in question had been used in
political contributions in 1904. Fifty
thousand dollars went to the Republi-
can national campaign fund, he said,
and other amounts to aid Republican
state campaign in New York, Con-
necticut and Rhode Island.
Mr.. Mellen advanced the money and
the railroad company REIN bursed him.
He made this statement:
1.-The transactions by which 10, 835
shares of New Haven stock were sold
to me in March, 1904, and 1 gave my
notes to the New Haven Navigation
stock was treasury stock and had to
be listed on the stock exchange in or
der to be sold to the public.
In order to list it, it was sold to
me, and I gave my notes to the COM
pany which held the stock as collat-
eral until sold.
"All the shares were sold at the best
obtainable prices, and the entire pro-
ceeds, together with the dividend paid
to the company's treasury.
''The company received approx |
mately $102. 900 more than the price
at which the stock was sold to me.
''The transaction was bona f1de and
was made without any expectation
that any excess over the selling price |
to me would be realized.
Came Out of His Own Funds.
Between the time of the sale to |
me and the closing of the transaction |
] had personally disbursed out of my |
own funds considerable amounts ex-
ceeding in the aggregate the sum of
$4,000
These expenditures I had made not |
for my own purposes or in any way |
for my personal advantage but abso- !
lutely because was president of the |
New Have railroad.
AT that time 1904, corporate con-
tributions 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 |
know, through anybody else.
I'm 1904, I contributed $50, 900 to the !
National Republican campaign fund |
and other sums for the Republican
campaigns in New York, Connecticut
and Rhode Island, because I was presi-
dent of the New Haven. 1 had been
to make these disburse-
lnents out of my private funds which,
as a private individual I never would
have made on the closing up of the
sale of these stocks. it appearing that
an unexpected profit had been realized
and the directors. who had been cogni-
zant of my contributions for these pur-
poses, thought proper to make me this
allowance.
"'I never personally received or re-
tanned one dollar to my own profit or
"AU the transactions were fully ex-
planned to the auditing committee and
we're satisfactory to them as expendi-
tures in furtherance of the company's
interest and protection of its property"
Replying to Commissioners Prouty,
Mr. MeIIen said that none of the
money disbursed by the road had been
1sed in an underhand way. He added
nat not all of the sum mentioned was
1sed for campaign purposes, a part of
I having been spent in the acquisition
IF pier leases