The Washington times., 1913-07-18
SEE PUBLIC BENEFIT
IN MELLEN'S ACTION
McReynoIds and |. c. c. Think
New Haven Heads Retire
ment Means Change.

Retirement. of President Mellen from
the New York, New Haven and Hart
ford railroad smoothes the pathway of
the Department Of Justice and the In
terstate Commerce Commission, both OF
which have been seeking just such an
opportunity to turn New England rail-
road affairs from a reign of moponoly
to the public benefit
Some few officials in Washington are
outspoken today on this latest and
somewhat sensational turn of affairs,
while others do not wish to be quoted.
After the Cabinet meeting today, AT
tcrney General McReynolds said. that
the resignation of Charles S. Mellen as
president Of the New York, New Ha zen
and Hartford, indicated disposition on
the part of the railroad to cooperate
with the Department of Justice in its
demand for dissolution of the pro-
perty.
The Department of Justice is now at
work on the question of dissolution. he
continued. and he hoped the railroad
would now show disposition to come
more within the law than 1t appeared to
be in the immediate past
"I hope it indicates a fixed purpose on
the part of the managers of the New
England roads to work out a scheme
for bringing about new condition OF
affairs entirely in harmony with the
law" he said.
The resignation paves the way for
reorganization of that system upon a
new and frmer foundation, for the
restoration of railroad power and in
dependence in New England, and for
competition and an operation of the
New England roads that is acceptable
to their patrons and the public -
This is known to be the opinion of
high officials of the Interstate Com
merce Commission, although the COM
mission declined public comment. For
months both the commission and the
Department Of Justice have been at
work on the New England railroad sit
uation, giving particular attention TO
the New Haven. The commission be-
lieves that President MeDen's resigna-
ton proves its recent Indictments of
the railroad. These were made in its
report upon the fiscal policy of the road,
and upon the Stamford wreck. Both
reports strongly pointed out that new
deal' in the New Haven was impera-
i've NdluSS u Tic TdilTOdO 5
securities. it is believed, made this view
more impressive to directors and stock
holders and the other interests in the
system. --..--.-. e..
1t was stated at the Interstate Com
merce Commission today that President
Mellen's resignation from the New
Haven, the parent road, was expected
following his retirement from the Bos-
ton and Maine. The commission be-
heves, however, that causes more potent
than its two recent reports are RESPONSE
bic for the withdrawal of President Mel
len, these reports possibly Fastening the
action.
The ascendancy of a new and stronger
element on the board of directors of the
New Haven is hoped for and confidently
sioners hope new administration win
secure the controlling power, which will
work more in harmony with the policies
OF the Government and the rights Of the
public.
The report of a renewal of the interest
of William G. Rockefeller in the roads
reorganization is regarded by the COM
mission as hopeful sign of the inau-
guration of a forceful policy.
The commissions report last week not
only arraigned the New Haven's finan-
cial operations under Mr. Mellen, but
emphatically declared certain phases OF
the monopoly violated both the letter
ana spirit of the law and that the
HLSLecl VI tILs Iouu Win Otner uneS was
OF doubtful benefit to the public. In this
report the commission asked at what
price was peace 10 be obtained and held
up as club to the stockholders a re-
1usai TO sanction increased rates as long
as conditions continued as they were
In our opinion" the commission said,
the New Haven should dIvest itself Of
its trolley lines
Further than this the commission
went IT.to all the New Haven holdings
OF the Mellen merger and pronounced
against them, but frankly confessed
that it could not conceive of a complete
disassociation of the New Haven and |
Boston and Maine, as was proposed
Following the tip of the commission |
u would not be surprising TO officials |
here II Boston and New England men |
made strong fight for control when |
President Mellen steps out. With |
respect to such a proposition the CON- |
mission in its report said:
Boston has more at stake than all |
The rest OF New England, and whether |
that city, both as a port and a market. |
would b. injured by the perpetuation |
Of this merger would depend largely on /
whether the corporation controlling the |
railroads of New England was domin- |
ated by Boston or New York Ii the
New Haven company could be domin- |
ate1 by New England men and financed |
less danger in giving IL the MANAGEMENT
OF the railroads of New England
The commission believes in COM
petition which supplies a stimulus to
action not begotten of regula ton, bat
there are conditions under which coin
petition cannot be had. and in which
regulation must be relied upon"