The Bridgeport evening farmer., 1913-08-13
Bankers On Board Of Directors Held Re. sponsibIe for Expansion Scheme --Great Profits For Them -MeIen Said To Have Opposed Water Grab = Saving
 Of OakIeigh Thome

| OemanQeQ at that time. The dSSuInp- | ton proved correct. It is reported in official legal circles here that some members of the board of directors of 1 the New Haevn road have in private conversation somewhat vigorously commented upon ''Jack'' Nforgan's coId-blooded lack of gratitude for the man who saved his father annoyance. ! But it is conceded that this is mere gossip.
 As to the other syndicate-the one which, in the belief of some of those who are in close touch with the de- velopments of the past seven years, began an attack upon the New Haven in 1908 in the hope that they could wrest from it control of certain valu- able trolley propertfes-no information is given out. This much only may be stated: appr oximateIy $1,Ooo.ooO has been spent in this attack. There is no suggestion that Louis D. Brandeis, the attorney, can have any first hand knowledge of the plans of | this syndicate. Its existence is doubted by some close observers. It is believed that certain Boston bankers have merely held themselves in readiness to take l advantage of any opportunity which may arise, but have not tried to make that opportunity. It is admitted that I if a syndicate could gain control of l the New Haven trolley properties at hammer sale and sell again when the | market recovers, a profit of $50,000, 900 would not be extravagant It is hoped that MT. Brandeis, who is an acute ob- server, may be able to help the depart ment- Saving oakIeigh Ihorne.
 For example, there is the story of the missing $12O0o,OOO. That story has been baslxing on the surface of the In- terstate commerce commissions report, but it has never been told in a news paper before today. Commissioners Prouty bitterly commented on the fact l that the New Haven road bought the New York, Westchester and Boston four-tracl electric line in 1906 when no construction work had been done | upon it.
 sAThe New Ravens books show that it cost the road $34oo0.Ooo,'' reports Prouty. The same books show it's value to be s22o0o.ooO. What became of the missing $12,0O0, 0O0?'' We'll, here's the answer-an answer that just sticks out all over the story. but which no one seems to have seen | before.
 1 That s12,0Oo,oOo went to help Oak 1 leigh Thorne's Trust Company of | America out of a bad hole in shaky | days of 1906.
 ] Every one knows that Thorne had planned a trolley system. He got to- l gether various promises and franchises north of New York city, including an I entrance into New York over the New Haven lines, and over she Second and I Third avenue elevated roads, which are to be tracked for that purpose l according to Joseph H. Choate's brief | to the Interstate commerce commis- l sion.
 Then panic began to peer over the money horizon. The Trust Company
 of America was mighty wabbly | Everyone knew that it got help from some source. and the source was the treasury of the New Haven road. Its | printed plaE is plain in the interstate
 commerce commissions report, except l that one feature was missed by Com missioner Prouty.
 On Wall street it was reported that
 Oakleigh Thorne, desperate for lack of money with which to save his
 water-logged trust company, had of fered 8 list of trolley securities for I $250,000 cash. That may be just canard. Maybe it wasn't this list Fat | all. But the fact remains that, as stated in Commissions Prouty's re- ! port, a committee consisting of Nor
 gan, Rockefeller and Miller was
 named with power to act.'' This committee later reported that it had bought from Oakleigh Thorne
 and had expended up to date SIP, 900 for the New York. westchester | and Boston road.
 4 The interstate commerce comnis- sion developed that no work of con struction had been done at the time
 of purchase upon the Westchester
 road But 12,0o0,Ooo-tfae exact figures were somewhat less-of New
 Haven railroad money was paid for securities of OakIeigh Thorne's. Here is the list, as printed in the interstate
 commerce commissions report.
 "s9.15O,o0o (all) of the capital stock
 of the New York and Portchester
 R. R. company.
 "$1oo,Ooo (a1l) of the bonds of the
 same.
 "s1,sO1,e27 notes of the City and Il County Contract company.
 f$12.5OO debenture bonds of the
 New York, westchester. and Town
 Site company.
 1850. .Ooo Ga1D of the stock of the Il Mount Vernon and Eastern Railroad
 company
 There seems to have been some un-
 easiness about this transa ction. There the record, in which he hints to Thorne that inquirers are getting dan Il gerousIy near. The record also shows
 that inquirers. were to be referred to
 J. P. Morgan, ST., only. We simply had to pay through the nose, and It , came pretty near settling me- MelIen
 stated on the stand. But he was in
 an embarrassing position for he
 knew nothing of how the cheeks were passed"
 It was evident enough that Thorne's trust company was helped out of a dangerous hole by a ladder taken from the New Haven roads treasury. It is doubtful if the stockholders Of the New Haven would have approved } such altruiSrn. For the plain evidence
 shows that the $12,O0O,0o0 given to
 Oak1eigh Thorne amounted to pre- cisely the difference between the cost
 of the Westchester road to the New
 Haven Cs34,ooo, o,o0O) and it's value, | I1451% fs.d I1xTf 10 New Haven ($22,000,00O.) Il MT. Mellen stated before Commits