New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-05-22

! WlLLLLl i N1N
Washington, May ?l.-When Mr.. Mellen
| took the stand this morning. Commissions
er McChord again presiding. Mr. Foik
took I'D the acquisition OF the Rhode ISL
and trolley system.
"What assurance did Senator Aldrich
give you to be transmitted TO tho New
Haven directors7' he asked.
II do not remember that he gave me
any," Mr.. Melen replied.
Mr.. Mellen said that his impression was
that when Mr.. Aldrich saw him at STOCK
bridge. In 1906. he made some allusion 10
bringing about resumption Of the nego-
tiations for the acquisition OF the Rhode
Island trolleys.
Mr. Folk read the minutes OF meeting
Of the directors OF the New Haven held
June s, 1895. showing that the plan TOT
taking over the Rhode Island trolleys
was disapproved.
so II was shortly afterward that MT
| Aldrich saw you at Stockbrdge.
81 think so.' said DIr. Mellen. HE was
motoring through the Berkshires. | be-
lieve and stopped off TO see me.
Mr. Mellen said that the United Gas
and Improvement Company during the
negotiations refused to separate the Con-
necticut and Rhode Island trolleys.
I'VE did not want the Connecticut prop
critics" he added.
The intimation was that the New Hav-
en- had TO take the properties OF botn
states in order to get the Rhode Island
trolleys.
Paid $20,o00,0O0; Worth $4,000, 00o2
/ Mr.. Folk pursued his inquiries concern
/ ing the meetings OF the New Haven d.
rectors. He called attention TO the min
utes OF the board OF December 8, 1906 at
which the contract between the New fla-
ven and the United Gas and Improvement
Company was submitted with the appro-
val OF Mr.. auckland. counsel. The agree
ment TO purchase the trolley lines from
the United Gas and Improvement Com
/ pany was approved by the board.
Has the deficit that resulted from the
purchase of the Rhode Island trolleys
ever been made up?" Mr.. Folk asked.
| NO, but / am confident it will be-"
said Mr. Mellen.
so you paid sl9.oooO 900 or s2O.ooo,Ooo for
| property worth about $500 ,0O0?"
! II do not accept your valuation OF 49,
10000. The sum We paid was the value OF
/ the trolleys."
! How do you estimate the value in
/ case like that?'
when / value a purchase I consider
| its prospective value; what 1t ultimately
will DO worth"
! In explaining the purchase OF TIE Rhode
Island trolleys Mr.. Melen said that the
! price paid was in debentures of the Rhode
Island Security Company, guaranteed Dy
| the New Haven Railroad. This was nee
essary because the New Haven owned
The security company.
| AS this was an inter-company trans
action" said Mr.. Mellen. "the price was
perfectly immaterlal. 1t simply was the
passing Of securities between the New
Haven and its various subsidiaries. 1t
was the changing OF assets from one
| pocket to another
Mr.. Mellen said that in the Rhode
Island trolley transaction he was assist
ed by various members Of the board OF
directors OF the New Haven.
Plenty of Influence
81 used 70 winnow out the chaf, drop
ping out details after comforting with
soms directors and then taking up the
main point with committee"
"What influence was used In the
transactior?"
:" imagine there was every kind.
There always is undue influence for
and against evsry matter Of this kind,
but as to any particular prominent man
do not recall"
WAS there influence exerted TO induce
you to acquire these trolley lincs?" asked
Mr.. Folk
y never have known" responded Mr.
Mellen. "a large transportation matter
that was not backed by influence. The
fact is that In the acquisition OF these
electric lines l was working toward a
great principle. Sooner or later. felt,
transportation was TO be electricity I
had a theory that instead OF great rail-
road passenger stations which are very
expensive. the public would be better ac-
commodated BY the electric lines running
at high speed through the country and
IN the cities. Electric and steam railroads
are not necessarily competitive.
II am confident at this moment my
, theory would work out, and I say now
that those who were and are fighting US
were opposing their own best interests. +"
do you think control OF that kind
would be fair to the pubic?"
Tho control must be such as was con-
D 81 L.,
be in tho hands OF the government" an
, swered Mr.. Mellen with emphasis.
You regarded control by one man as a
good thing?"
That is MISSIONER. No one man could
: control It, I had more bosses when I
was president OF tho New Haven at a
salary OF $1,000 than when I was a clerk
at $50 a month"
Q.-Who were your bosses A.
Well, had to consult numerous people.
Q.-The main force was Mr.. Morgan,
was it not9 A.-The great force in tho
world is brains, and Mr.. Morgan had
them.
Q.-Then the control would have gone
to one man? All his brains controlled
the situation he had a right to that con-
, troll.
Q.-Have you, in the light OF later
events. changed your views? AIR
Morgan's death changed the situation.
Questioned by Mr. Eolls Ia 20 ID, 1890