Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-05-02
HE GAVE 100000
TO AID CAMPAIGN
Mellen Tells of His Contribu-
tons to Republican Party
in 1904.
RAILROAD HEAD BEFORE
COMMERCE COMMISSION
Explains Apparent Profit in Stock
Tra6e-Air7 New Ee-er's
0the- T-ensaciions.


BOSTON, MAY President Mel!cn of
the New Haven railroad, appearing in
his own defense before the interstate
commerce commission today. gave an UNI
expected explanation of some OF the fig
ures in the New Haven's books
According to the governments expert
accountant. David T. Brown. there APP
peared an apparent profit of s1o2.mo
made by Mr. Meilen personally by trad
ing In the stock OF the railroad company
The frs. tniag that Mr. Meien said
when he TOOK the stand was that the
money in question had been used in po-
Iiticsl contributions in 1901
Fifty thousand dollars went To the re-
publican national cam paign fund. he said
and other amounts to aid republican state
campaigns in New York. Connecticut and
Rhode Island
Mr.. Me,len advanced the money and the
railroad company reimbursed him
Transactions Questioned
He made this statement: THE transac-
tons by which 1.'>:I5 shares of New
Haven stock were sold To ME in March,
1904, and 7 gave my notes To the New
England Navigation Company. have been
questioned
This stock was treasury stock. and
had to he listed the stock exchange
in order 10 be sold to the public.
In order to list il, il was sold to me,
and l gave my notes to the company
which held the stock collateral until
sold
All these shares We're sold at the best
obtainable prices. and the entire pro-
Goods her with the dividends ndld
10 the company $ treasury.
1.-THE company received approximately
$4,000 more than the price at which the
stock was sold 10 me.
Deal Bona Eide, He Says.
The transaction was bona fide and
was made without any expectation that
would be realized.
Between the time OF the sale to me
and the closing of the transaction / had
personally dsbursed out of my own funds
considerable amounts. exceeding in the
aggregate the sum of 100000.
These expenditures l had made not for
my own purposes. or in any way for my
cause | was president of the New Haven
railroad At that time. 1904. corporate
contributions to campaign funds were
customary and not illegal.
Such contributions have not been
made since 1904 by the New Haven rail-
road through me. or. so far as ] know,
through anybody else.
In 1904. 1 contributed $4,000 to the
republican national campaign fund and
other sums for the republican campaigns
In New York, Connecticut and Rhode
Island
Gave From Private Funds
Because l was president of the New
Haven company. I had been constrained
TO make these disbursements out of my
private funds. which as private individ-
ual never would have made. On the
closing up of the sale OF these stocks il
appearing that an unexpected profit had
oeen realized, my directors. who had been
coSnlzant of my contributions for those
purposes. thought proper to make me
this allowance. l never personally receiv-
ed or retained one dollar TO my own
profit or advantage
All the transactions were fully ex-
planned to the auditing committee and
We're satisfactory to them as expend-
itures In furtherance of the company s
interest and protection of its property
replying 10 Commissioner Prouty Mr..
Meiien said that none Of the money dis
bursed by the road had been used in an
underhand way. He added that not ALI
OF the sum mentioned was used for cam
palen purposes, a part of ii having been
leases.
Explains Transactions.
Mr.. Mellen next explained several other
note transactions. indicating that certain
sums of money apparently unaccounted
Tor We're spent for pier leases and other
transactions. (which were fully EXPLAINED
TO the directors and approved by them :,
NO other political contributions were
mentioned.
Mr.. Mellen appeared as voluntary
witness. and Commissioner Prouty
would not permit him to be sworn ar
cross-examined lest the witness might
iater claim immunity in federal pro-
ceedinSS now under way.
commenting on his purchase of street
railway lines. Mr.. Mellen declared ma
All OF the New Ravens trolley proper-
Ties would in 1913 pay the New Haven
per cent on their cost He consid-
cred trolley lines a valuable adi,,nc,
to steam roads
me New Havens contract with tho
Pullman company, which the government
accountant said showed a large annual
Ioss 70 'he New Haven. was next con-
sldered by President MelIen He declared
that the contract was beneficial to the
New Haven. 1t relieved the road M a
capital expenditure of 100000 for new
steel cars. and the Pullman company Maid
the New Haven $500 900 for ire old -.
Fnis is the best contract any railroad
mas ever made with the Pullman com
pany," said Mr. Mellen.
Opposes Concessions.
Turning to the commissioner. Mr. Mellen
said with much emphasis:
III ! had my way. Mr. Commissioner
should never let out a contract for a
Single concession I believe that rail
foad should have all its concessions in lis
own treasury, including the express busi-
ness. But what can one railroad do
when an the others adopt different
QUESTION was splendid Investment for
,he New Haven. the witness said He
auoied HSures 10 show that the Central
new England pays to the New Haven
annually 30 per cent OF it's uet cos,
DENOUNCE LAWIESS METHOD