The Washington times., 1913-11-10
CONGRESS TO PROBE
MELLEN CHARGES
Domination of the New Haven
Alleged in InterWew-WiIl
Be Investigated.
CONTINUED from First Page }

LEOll iSh dSt-y
y far cry. in short. to the conclusion
that he believes the Water Power
trust is well on the way TO leadership
Of the financial-industrial organization
of the country.
The complete text of the Mellen inter-
view was published in the Boston Sum-
day Post, and when that paper reached
Washington today II was in instantane-
Gus demand among public men, Admin
istration officials, Senators and Con-
gressmen, and others interested in rail-
road and financial affairs,
Government Ownership.
Mellen's interview declared that Gov
crnment ownership of the railroads is
Inevitable; it must come, and he expects
II within his own lifetime.
In connection with the argument of
the railroads demand for an increase In
their rates, wnIcn Is shortly to begin be-
sion, the Mellen statement was accepted
as q tremendous blow TO the railroad
cause. One of the attorneys VINO VIII
be engaged in that case IN a very promi-
nent way declared that the Mellen story
completely proved tnat bad management
-banker-nianaSemellt he IL
was responsible for the misfortunes of
New Haven, and that there was no sub
stantial reason, traffic or financial, why
the companys s rates should be increased.
Ii is reai.zed, especially at the Iu.sr-
state COMMISSION headquarters, that the
Injection of this remarkable View OF
New haven aIralrs into the situation as
affecting the advance of rates, will have
a profound elect on that hearing, and
the resultant determinations. There was
talk at the comm. .ssion's offices today
that the recent investigation Of New
Haven affairs would hkeiy be reopcned
in dor Mr hall 1rl7 pnT a
chance to make a complete and ietail-
ed statement of the things 6nIch ne has
outlined in his interview. This, ii was
declared by many pubic men, would de
the most Illuminating inside view OF a
long series of great hscai operations that
has ever been made in tbs country.
Sensation At Capitol
On Capitol Hill the sensation over the
kllen disclosures was quite as acute.
That instant Congress onal attention
win be given to it was declared in sew
eral quarters. at least two Senators
sre known to be engaged today in a
study OF the recent report by the Inter-
state Commission. and a comparison Of
II with the Mellen statement They have
in view to present and press measures
which will require the commission to
Aelien, the roads bankers, and other
people who may be able TO shed light
On the subject.
Such a resolution viii come up, with
out much doubt. when the Senate sits
tomorrow. That II viii be adopted
without serious opposition was regard
ed as practically assured by the COM
ments that were heard today.
One cryptic paragraph in the Meilen
interview has attracted the widest at
tention and intense wonderment He
referred repeatedly to the "Machiave-h Ii
of State street" as the real power In
the New Haven, and made clear tnat
Shis financial Machiaveah is now, n
his opinion, 1.-THE silent ruler of State
street, now the most dominant per
, sonaiity in financial affairs, and rapid
~ assuming the mantle of Morgan IN
50 far as that mantle may be worn py
any. financial leader"
Who is this new giant OF finance, VINO
nails from Boston's financial district:
instead of New York's; who would
make state street" rather than wall
street" synonymous with financial pow
er and control? That question Is On
fngton, but in financial and railroad
circles elsewhere.
Water Interests Power.
That the water power interests head
ed the fight against the New Haven
because it invaded their field OF water
mower, electrical and trolley control
was charged by Mr.. Mellen- He sald:
The New Haven, long before L took
charge had been in the trolley business
because the electrical lines are natural
foeders OF traffic 10 the main road l
rimoIy pursued the same policy of de-
veloping this feeding SYSTEM and IN
acouiring additional lines ! stepped on
she toes of the people who control the
Boston Elevated, the Massachusetts
Electric Companies, and the Boston and
worcester street railway. These Boston
bankers, through their Stone & webster
orzanization, have gone into the electric
FCht power, and transportation pusl-
ness In all parts of the country, ana
+fsey were determined that no other Or
zsnizatton should have any large part
OF the New England trolleys.
ssThey fought US tooth and nall. Iney
.aised the cry of monopoly against the
New Haven, although at the same ume
they were trying TO monopolize the feid
for themselves.
Only Operating Head.
r,escr1bing his own Insignificant part
IN the actual fiscal management of his
system. Mr.. Nellen proceeded:
but at best [ was simply the ope-
,ztinp head of the road. the fight was
betyeen the banking interests-between
New York on one side and Boston on
aI had no more to do with the imam
riai rolicy of the New Haven than l
Lad 10 do with the editorial policy ot
the Boston Post When the road neeo,
cd money, il was supplied at tunes ahu
In amounts by the banking house that
dominated every move the New haven
made.
lust to show you how much had
"a DO with the financing of the road
I win tell you of a little incident that
happened 4 few years ago. j was
travelling on the road one day when ]
fappened to meet a representative or
one or Boston's biggest banking houses
AS a note issue was being conteppiat-
ed b. the New Haven, | talked with
fnis man about the price of money ana
ryhate rate of interest we should prob
ably have TO pay on the notes.
"A day or two later ] was hauled up
on the carpet by representatives. OF our
fiscal agency and told in effect TO mind
my own business. When the New
Haven wants money, We will furnish
IT, they said. and we don't need ad-
vice.
And yet the Boston newspapers held
NE up to the public as the man who
was leading Morgan around with a
siIken stringi No siri The man who
put up the money was the boss of the
New Haven"
Wanted To Sell Ships.
One of the striking revelations in the
2rellen story is that Mellen himself was
never in favor OF the attempt to mo-
aopolize the water transportation of