The sun. [volume] (New York [N.Y.]) 1833-1916, 1913-07-09
MBLLEN GETS OUT OF
BOSTON AND MAINE
Also Resigns From Maine Cen
tral-BOth Are Subsidiaries
Of the New Haven.
TALK or HIS RETIREMENT
Road in Statement Says Three
Roads Are Too Much
for One Man.

President Charles s. Meilen of the
New Haven system resigned yesterday
as president ~ the Boston and Maine.
the largest subsidiary of the New
Haven. and rs president of the Maine
Central.
The board Of directors of the Boston
and Maine. meeting in the South station.
Boston. yesterday accepted his resig-
nation and will elect Morris Mcdonald,
at present vice president of the Maine
Central. to the presidency II the Boston
and Maine at a special meeting on
July l6. Mr.. Mcdonald will he elected
to succeed Mr.. Mellen as president Of
the Maine Central At the directors meet
ing to-day.
New Uav~n statement.
The New Haven. through its New
York office. issued "A statement in part
as follows:
This change in the executive manage
nent means nothing more than that MIR.
Mellen will devote hts sole time to the
affairs OF the New Haven Railroad and its
direct suhsidiar ries hereafter and that
Mr. Mcdonald will in all respects handle
the Boston and Maine and Maine Central
railroads The change does not mean any
loss OF interest In the affairs OF the Bos-
ton and Maine and Maine Central by the
New Haven. and Mr.. Mellen continues In
the boards of directors of both roads and
rs q member Of the executive committees.
1, has been found impossible for one man
-et. Nt,.~ n
and do justice to each. and the New
Haven being the larger and more i'm
portant Mr.. Mellen will hereafter devote
his attention to the affairs OF that road
Wall Street jumped to the conclusion
yesterday afternoon that the resigna-
tions preface Mfr. Mellen's complete re-
tirement from the management OF the
New Haven road before long.
Another inference drawn In Wall
street was that Mr. Mellen had got out
in order to forestall the report Of the
Interstate Commerce Commission on its
inquiry into New Haven financing,
which is to be published to-day.
Dispatches from Washington were
published in Wall Street yesterday
afternoon predicting that Commissioner
Prouty's report to-day will be decidedly
adverse to Mellen and his unlimited &C.
quiring Of outside roads.
Believe Report Adverse 70 Road.
II was predicted yesterday in Wall
Street that the report to be published
TO day will score the New Haven policy
OF acquiring trolley and steamship lines
at prices above values. 1t was brought
out during the commissions inquiry
that the New Haven had increased its
ca pital in the last eight or ten years
from approximately 800, 100000 to over
$500, 900, 900 with only slight increase In
mileage. The acquisition Of the trolle!
lines was given particular attention dur.
ing the inquiry, particularly the pur.
chase Of the New York. Westchestcr and
Boston Railway at cost OF over $lO.'
! 900 900 more than its value.
The story that President Mellen's
resignation from the New Haven was
In the hands Of the directors with
President Howard Elliott Of the North.
ern Pacific named as his successor
when the Westport indictment brought
delay OF action, was revived with re-
newed vigOr yesterday.
| 1t In believed that Mr.. Mellen's resig
nation from the New Haven will not
he brought about until after he has had
! a chance to answer the two indictments
pending against him. one a result Of ths
Westport wreck and the other brought
| in the Federal court here on the score
OF the alleged combination OF the New
Haven and the Grand Trunk to restrain
trade by stopping work on the partially
completed Grand Trunk line to Provi
dence.
stockh oId~rs object 10 Policy.
/ The view OF many New Haven stock
holders who believe that President Mel
lens expenditures have been respon
sible for the stock depreciation wa
voiced yesterday by one OF them. VIII
said:
Il do not like a man who In not afrai'
| OF spending money. The policy Of spend
ing money broadcast when you do no
have II or do not see where II IL comin
from is not a sound one. There is NJ
justifable reason for the broad purchas
of trolley lines that the New Haven ha
extended itself to acquire. The result
inevitable. When you have trolley lin
and a steam line side by side under on
management one or the other II hound I
suffer The argument that the trolle
lines became feeders OF the steam line
Is nuliified in this way. Likewise tn
steamship lines OF the New Haven hav
made the system suffer. There Is limi
to this sort Of expenditure and the liml
has been reached now. President Nellie
brought with him the policy OF cxpendi
ture. That policy In finished
Morris Mcdonald. the successor o
MFR. Mellen az president Of the Boston
and Maine and Maine Central. IL abou
so years old. He entered the railwa,
service in November. 1883, with tn
engineering corps OF the Kentucky an
Indiana Bridge Company. He did
good deal Of railroading in the Soutl
and In 1895 became secretary to tn
general manager of the Maine Contra
railroad. Since 1908 he has been vice
president and general manager Of tn
Maine Central.
| WON'T DROP MELLEN ACTIONS