New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-05-01
NEW HAVEN DISPUTES
IMITATION CHARGES
Contends Railroad Property Has
Increased 100 Per Cent,
Not 400.
EVEN WORKS OUT SURPLUS
Mellen's Son Sold Coal to
System Diamond Jim"
Brady Got Many
Big Contracts.

Dig SOutTdCtS.
Boston, April &C. F. Choate, jr., as
attorney for the New Haven system, CUB
mitted this afternoon the railroads con-
tention that there was an apparent sur
plus of $4,000 for 1912 instead Of a deficit
Of 100000. Other testimony heard at the
Interstate Commerce hearing brought out
that Graham Mellen. son of the New
Haven president had sold the road a
great amount OF coal and that numerous
delays on one division of the system had
been attributed to poor coal. James b.
c'Diamond Jim') Brady, of New York, 1t
was also shown. had landed an aggregate
Of New Haven contracts running well
into the millions.
According to Mr. Choatc, although the
capital Indebtedness of the New Haven
Company increased from s94. 10000 In 1903
TO Al7 200 in 1912, 2l5,0O0 shares of New
Haven stock had been held by the New
England Navigation Company a SUBJ
sidiary. and no cash dividends had been
paid on these holdings. Eliminating these
shares. the witness said, instead OF
deficit in 1912, surplus OF $4,000 was
shown.
Taking up the acquisition In 1907 by
the New Haven Of the Rhode Island
Company, a subsidiary operating trolley
lines in Rhode Island, Mr.. Choate en-
tered on the records a COPY OF voucher
for ISL 800 paid to f. b. Robbins, New
Haven official, in the purchase OF the
Providence Securities Company, which
Irvtx nll a
ton known as the New England Loan
and Trust Company. It's charter and
$50, 900 in stock we're purchased by the
New Haven. Mr.. Choate said.
The Rhode Island Company and the
Providence Securities Company together
acquired six trolley lines. Figures read
by the witness showed that the Rhode
Islands net income in 1907 was s139, 200;
in 1911, s60l 900, and in 1912. s5S7.59S.
Large sums were spent In 1912 for
equipment, miscellaneous expenses and
increased wages In 1903 the company
had a deficit of 100000.
Best Built in America.
AS 10 the New York. Westchester &
Boston Consolidated Railway Company,
which Mr. Brown said on direct eXami-
nation cost si,500,00o a mile. Mr.. Choate
said II was four-track road and. he
understood, the best built road in the
United States.
The first witness OF the day was II. A.
Fabian, purchasing agent for the New
Haven and the Boston q Maine. He
said the Virginia Iron. Coal and Coke
cured contract to furnish the Boston
& Maine $4,000 TO $4,000 tons of coal
monthly for five years. beginning April
/. 1912. IT was brought out that the
president OF the Virginia company, Mr.
McHarg. was a New Haven director at
the time the contract was made.
Mr.. Fabian told of contract between
the New Haven and the Boston &c Name
roads and the Keystone Coal Company.
o! which Graham Melen was the East
ern sales agent and OF which a son OF the
late President Cassatt OF the Pennsyl-
vania Railroad was president.
The Keystone company. he said. fur
nished about $500 tons OF coal annually
to the Boston & Maine and about 10000
tons to the New Haven, or about % per
cent OF the New Haven's annual con-
sumption. II obtained It's contract be-
cause of the quality Of its coal.
Contracts for Brady.
The award OF contracts for car con-
struction was taken up. Fabian told of
eleven contracts between the Keith Car
and Manufacturing Company. OF Saga
more, Mass, and the New Haven and
some OF its subsidiaries. aggregating
more than $4,000. An the contracts
were signed in behalf OF the Keith COM
pany by its vice-president. ]. b. Brady.
The witness read a list OF other con-
the New Haven. Maine Central and IL
trail New England roads. These were
competitive, and bids were received on
all but one. Brady. the witness said was
vice-president of the Osgood Bradley
Company, Of Worcester, which was con-
troled, as ne said, by the Keith company.
Contracts with the Osgood Bradley Com
pany aggregated $l.ss00Oo. Other cars
were built by the Standard Steel Car
Company. of which Brady was also vice
president and In which the witness said,
the Keith interests figured.
Fabian said that Brady was connected
with the railroad supply firm Of Manning.
Maxwell & Moore. Of New York, from
which the New Haven road bought many
tools, also particular types Of inspirators