New Britain herald., 1914-05-07
BILLIARD TEST|f|ES
 BEFORE COMMISSION
Witness Relates How He Secured Control Of Boston & Maine Road.
CHASE RECALLED TO STAND

Ire Of Attorney Robbins ArOuseu Dy
 Chief Counsel Tolk.-Commissionc
 McChord Commands Former to
 Take His Scat.
 Washington, May "A detailed statement of the transactions of the Billiard company with the New York, New Haven and Hartford railroad, it's fore the interstate commerce commits sion by John l.. Billiard, who organ ized the concern. He outlined the method by which, with the aid of Charles $. Mellen, then president of the New Haven, and loan from the New England Navigation company, a New Haven subsidiary, he took over the stock of the Boston and Maine railroad owned by the New Haven, which the Massachusetts courts de- cided the New Haven could not hold. After holding the stock year, Bill Railroad Holding company. another New Haven subsidiary at a profit of $25 a share on 109,94S shares. In payment for the stock. he said. he took $16,250,000 in gold notes of the New England Investment and Securi- ty company, a New Haven concern. and the Billiard company was formed to handle this transaction. Billiard put $2,000,000 into the Billiard com pany he said, and sold it to the New England Investment company. receiv- ing the $2,000,000 cash and $14 4.25O,- 900 in Billiard company notes in pay ment. These Billiard notes, in accord ance with an arrangement with MT. Mellen. he said. were bought by the New England Navigation company.
 Statement Is Submitted.
 The prepared statement which MT. Billiard put in the record was as fol- lows:
 Tn 1907 the New York. New Haven and Hartford Railroad company held 109,94S shares of stock of the Boston and Maine railroad. which, as I un- derstood it according to decision of the assachusetts supreme court 1t had. no right to hold under the Mass- sachusetts law us 1t then stood. The New, Haven company hoped in time to " to hold this stock. At the moment, it was generally understood that the railroad company had to part with ,this stock.
 'T wrote Charles $. Mellen. the president of the railroad company, of fering $12O share for this stock. about the market price. He tele- phoned me that if would give $125 a share he would help me finance the {. purchase This I agreed to do. paid part of the purchase price with a note and the balance in cash. having borrowed for the purpose from the National City Bank of New York.s5
 Whole Fortune Riskcd.
 "In the purchase of this stock had risked my whole fortune. At one time the Boston and Maine shares had fal- len in the market so that my pur- chase showed me loss of over a mill lion dollars. I had bought the stock Eat about market price and sold 1t back at about the market price. I received $150 share. showing me a profit of $25 a share on my original purchase of 109,94S shares.
 "I was not at that time a director of the New Haven Railroad com " resale of this stock the negotiations between me and the railroad com- pany were absolutely free from any secret arrangement or understanding "I did agree, as is shown by writ ten contract dated June 30, 1909, in view of the profit I was making, to V take over from the New England ssNavigation company, in payment for the Boston and Maine stock, over $16,0O0, 900 of golf notes in the New England Investment and Security company, a Massa chusetts voluntary \ asso citation which controlled the street railways in Worcester and Springfield. \ These notes bore low rates of inter- 4 est These were to be guaranteed \ by the New Haven Railroad company. but as to the validity of this guar santee& think there was some doubt, These notes turned out to be worth less than expected.
 '.In the contract of June 30, 1909. by which [ took in payment for the < Boston and Maine stock $16,250,000 of gold notes of the New England In- vestment and Security company. the ! New Haven agreed to help me finance sNthis acquisition. 1t was understood at this time between me and the president of the New Haven Railroad ( company that I should organize a ! cerporation whose notes. similar to q the notes of the New England Invest X nent and Security company, should z be taken over by the New Haven spompany or the New England Naviga- ton company. I also desired to form < the corporation as a measure of self 2 protection and also to avoid cornpli- ~A
 Charter Granted in 1909.
 ss"The charter of the Billiard company was granted by the general assembly or the state of Connecticut in August, < 1908. The Billiard company never