The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-05-20

the transaction was said to be legal and
me New Haven could hold the stock In
this way.
.. And you found afterward that YOU
could not? A. found that there was
situation caused by legislation enacted
subseduentld; that legislation expired the
day we sold the stock to Mr.. Billiard.
solicitor Folk then took up the Billiard
company which was organized by John
l.. Billiard. Mr.. Mellen said that he had
nothing to do with the organization OF
the company.
Concerning Mr.. Billiard Mr.. Folk asked
Was he good business MANI,
II L am trading with him." said Mr..
Mellen. II don't look In any other difec-
ton except right in his eye. I don't turn
my head"
How about your hands?" asked Folk
Il keep them right where they are
now said Mellen, one of them being In
his pocket.
q. Did you turn 10994s shares OF stock
over to man OF that character? A. /
turned over the stock TO the man the
board OF directors ordered me to.
sold for 1925 q share.
Mr.. Mellen said that the stock was sold
to Billiard for 1925 "A share. but that early
In the negotiations Billiard had offered
only 1920 for II. He said that in consid-
Grafton OF the extra So paid by Billiard
MtlItn akTetu 10 neIp MN llnHnCe lne
transaction Billiard has testified that
he made s2.70S,000 In this transaction
without using n cent OF his own money.
Mr. Mellen contended that this sale TO
Billiard was entirely bona fide and that
Billiard assumed all risk Of loss.
The witness said that on June 80. 1909.
Billiard made a contract with the navi-
CATION company by which he agreed to
sell back this identical stock at $3.50 n
share.
Mr.. Folk then read 10 Mr.. Mellen an
extract Of minutes Of a meeting OF the
board OF directors OF the New Haven.
which set forth that Mr.. Billiard should
receive only reasonable compensation"
and actual expenses In connection with
his contract for the sale OF the 109,s4S
..hares of Boston and Maine stock
@. What do YOU say to that? A. That
Is true record.
@. How do you reconcile reasonable
compensation actual expenses. &c. as
stated In these minutes In competition
with this contract and your statement
that Billiard bought the stock outright
and with no string attached to III A.
sold the stock before that meeting. The
directors Thought the profit too large.
They passed that minute to strengthen
my hands In negotiating with Billiard as
TO the amount ne was going TO receive.
That was passed to enable me success
fully to negotiate with Mr.. Bllard 10 re-
duce his profits.
Mr.. Mellen seemed considerably con-
fused nj this point. Mr.. Billiard has de.
clared that II Mr. Mellen was responsible
for the particular minute he was guilty
boush, The stock outright and had no
s,ri,7,,s tiad n him
ct Ill, ,ba, ni n Iat.r date 7 fully re-
ported to the board all OF the transactions
with Mr.. Billiard and my action was
Mal,an
Me,,en' r,o,, ,h.. ox,u,,,.a aro,hs- nv.
-. 60, ,s' ~. tIo,.o,,.s minutes In
'.'.'o,.,s,' ,,,,,h a. oar,roc. for tho sails
a,'% ,,,,r,,hoso ~ ,his s,nct This extract
80 -, "a tn,,oiyod hut 4, shoued Mr.
E EaT, ION, oen a'u nou,inai nroSi of
a. $40 ooo ~ Tho Naw Haven on IN. deal
~. ,sa,ia, sot1 ,ha, tho ax,roc, vas In.
car-c", a. this u",,ld indirste a loss Of
~ $40 ooo an Tho n,ri ~ Riiard
IinaIIy ,,hon NJ L,o,E shou,.d tba, IN.
49,, - 60, ~, s,,as,.a 80, 90 tha
,nin,,tas ~ ,ha, ho.rd ~ diractors. meeting
nr 6c,ohar 1000 NJ N.iisn axciaImad !.
.Ths, rsnort is false and can only he
o.,,,iair>a Va, sa,,,,s 70 "a q TaL. + ala
~, S,rI,, tha ,nir,,..s"
"This minute shows nron. ~ s,s4e.
ma tn a. Nv, JJavar ana r. ,nnecrs IN
a renort that nurnorts IN be made by
ro,, :" co,,tnued NJ EoIk
eft was written bv the secretary" said
Mr. Nellen. '"rhere is a tremendous error
there"
"a Assuming that the stock really be-
longed TO the New Haven all the time,
there was n hook profit of sl.s4e. 600"
Insisted Folk.
Mr. M.llen would not admit this
The r.nort made BY Mr. Mellen showed
that 80 OO0. 900 worth OF stock Of the
Billiard COMPANY appeared in the treasury
of the New Haven in connection with the
transaction.
How did this s2,OOO0O0 OF stock get
into the New Haven treasury
"I don't know" replied Mr.. Mellen. "I
don't understand many things In that re-
mort"
what IL there so mysterious about this