The Barre daily times. (Barre, Vt.) 1897-1959, 1913-05-02
MELLEN ON
STAND TO-DAY
To Tell Of New Ravens
Transactions to Commits
sioner Prouty
PROUTY SCORES
NEW HAVEN
Says Books of the Railroad
Company Do Not Rep
resent Facts

Boston. Nav president Mellen OF
the New Haven road will appear before
Commissioner Prouty of the interstate
lcommerce commission at the hearing on
the affairs of the New England railroads
to-day it was announced last night.
President Melen repaid the New Ha-
yen,s treasury ali of the value of stock
bought by him on his personal notes for
millions. according TO testimony brought
ont at the interstate hearing yesterday.
The road also received the profits from
the stock transactions. Commissioner
proutv still persisted that while no one
claimed that the money was not paid
into the treasury. still he should like
to know what use later was made OF
$40, 600 and other profts-if it was lat
er paid to Melen.
| II was made perfectly plain---ln fact
the commissioner declared that there
never had been any doubt about it.
| that Mr.. Mellen paid back into the New
Ravens treasury the amount OF his
notes. with interest and profits added,
but MIR. Proutv said that as the books
stood it looked as ii the treasury, with
the approval OF the directors, later paid
| to Mr.. MelIen some of the profits made
! by selling the stocks for prices higher
than those charged to Mr.. Mellen on
his private account with the road.
Charles +. Choate, ir.. counsel for the
New Ravens president, went as lar as
| he was able in explanation OF these
| transactions bv showing that the treas
ury was reimbursed, and he will leave
! Il tn President Mellen and other officers
of the road to explain any repayments
| to Mr.. Mellen On repayments, Mr..
Choate claims that all We're eventually
| for the benefit OF the road and that Mr..
Mellen made nothing by them for him.
self personally.
At the opening OF Yesterdays session.
Mr.. Choate took ZIP the transfers Of the
steamers Connecticut and Rhode Island.
Mr. Brown testified that in August, 1901
! the Providence & Stonngton Steamboat
company transferred for s65Oboo to the
New England Navigation company these
boats. In December, 1906, they were
transferred to the United States Trans
portation company at the same pf3ee..
and on March 81. 1908. they were turned
back to the Navigation company io'
1882 900. Three years later they were
scrapped. only about 235.oJ0 having been
secured for the salvage.
Mr.. Prouty-Yoar contention that
those boats were worth S950,000 in zoos
when taken by the Navigation company
seems to me to be unreasonable. The
trouble here is the same as that which
I have complained OF several Zines
that vour bookkeeping does not represent
the facts. 1t seems hardly reasonable
that after they had heen used four Years,
during which 1892 900 had been expend-
cd. that they should have been put on
the Navigation company's books at 1851
/ 600. especially as three years later the
boilers were removed and the boats
scrapped.
There ensued discussion between the
commissioner and Mr.. Ghoate en- this
noint the latter contending tnat the
matter of charging off depreciation was
one for individual bookkeeping systems,
some preferring to make such charges IN
lump sums instead of gradual cuts as
they 90 along. The commissioner de-
clsred that he could see no chance for
different systems of bookkeeping on TINS
point. provided that the books are in
tended to show the actual standing and
facts with reference to any company
finances and properties.
Mr.. Choate pointed ont that Mr.. Brown
he'd not intended to claim in his testi-
mony that these transfers OF steamboats,
were made with view to conceal losses.
Mr.. Brandeis sam that it was done to
cover up the losses of the United States
TRANSFORMATION company in killing OIL
the competition of the Enterprise Trans
portation.
Mr.. Proutv said that IL appeared to
him that if the value of the steamers
was raised S400 900 or so when the Nayl-
cation company took them from the
United States Transportation then that
much more would be available to offset
the latter company's losses in sitting
competition. Mr.. Choate vigorously pro-
tested that so long as the overcharge
made no financial difference it was inn
material. but Mr.. Proutv declared that
atbere was the sentimental reason men
TONED by Mr.. Brandeis. killing competi-
tim" Mr. Choate said that so long as
tho New Haven owned both the Navl-
CATION and the United States compan-
les IL made no difference how the charge
was put on the books.
AZ one point when Mr.. Choate was
discussing the s2s2,O00 paid for repairs
on these steamboats, he said to the COM
missioner: "Now Mr.. Commissioner. put
Yourself in the place of the officers of
the United States Transportation COM
nany~-the commissioner interrupted
and commented, amid laughter: Il can't
do that
WY MELLEN is COMING.