Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1913-05-03
President Of N. Y, N. H. &
H. Tells Interstate Com.
merce Commission How
100000 Was Made.
NONE YADVANCED
FOR 1901 CAMP AIGN
Gave $4,000 for National
Republican Fund and
Other Amounts i'll Three
Eastern States.

Eastern States.
Boston, May president Mellen,
explaining the apparent profit made
by him Of 100000 by the sale Of the
New Haven stocks 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 Of the New Haven
railroad, appearing before the inter-
state commerce commission In his
own behalf today, gave an unexpected
explanation of some Of the figures In
the New Haven books.
According to the government expert
accountant, David Brown, there ap-
peared an apparent profit of $lO2.-
900 made by Mr.. Mellen personally by
trading in the stock Of the railroad
company.
Money Used In Politics.
The first thing that Mr.. Mellen
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
republican national campaign fund, he
said, and other amounts to aid repub-
licans state campaigns in New York.
Connecticut and Rhode Island.
Mr.. sMelIen advanced the money and
the railroad company reimbursed him.
He made this statement:
''The transactions by which 1885
shares Of New Haven stock were sold
to me in March, 1904, and gave my
notes to the New England Naviga-
tion Co.. have been questioned.
This stock was treasury stock and
nd to be listed on the stock exchange
in order to be sold to the public.
I'm order to list It, it was sold to
me and gave my notes to the COM
pany which held the stock as col
lateral until sold.
"All these shares were sold at the
best obtainable prices and entire pro
ceeds together with the dividends paid
TO the company's treasury.
"The company received approx
tmately 100000 more than the price at
(which the stock was sold to me.
} "The transactions were bonafide and
made without any expectations of any
excess over the selling price to me
which realized.
Between the time Of the sale to me
and the closing Of the transaction
had personally disposed out Of my
own funds considerable amounts ex.
ceeding in the aggregate the sum OF
100000.
Made For the Railroad.
These expenditures have made
not for my own purpose, or in any way
for my personal advantage. but abso-
lutely because was president OF the
New Haven railroad.
"At the time, 1904, corporate contrf-
buttons 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.
"In 1904 I contributed $4,000 20 the
republican national campaign fuSl and
other sums for the republican cam
paigns in New York, Connecticut and
Rhode Island.
Because / was president Of the
New Haven company, had been con-
strained to make these disbursements
out of my private funds, which. as a
4 private individual, I never would have
made.
ION the closing up of the sales of
these stocks, 1t appearing that an un-
expected profit had been realized. my
directors, who had been cognizant of
my contributions for these purposes.
thought proper to make me this allow
ance.
II never personally received or re-
tained one dollar to my own profit or
advantage.
"All the transactions were fully ex-
planned to the auditing committee and
were satisfactory to them as expendi-
lures in furtherance of the company g
interest and protection Of It's prop
erty."
Not All Used For Politics.
Replying to Commissioners Prouty,
Mr.. Mellen said that none of the
money disbursed by the road had been
used in an underhand way. He added
that not all of the sum mentioned was
used for campaign purposes part OF
It having been spent In the acquisition
Of pier leases.
Mr.. Mellen next explained several
other note transactions indicating that
certain sums Of money apparently un-
accounted for, were spent for pier
leases and other transactions which
were fully explained to the directors
and approved by them" No other
political contributions were mentioned.