The Washington herald., 1914-05-23
SMITH TELLS OF CONFERENCE
BETWEEN 7. r. AND MELLEN
.ial TO The Washington Herald.

Special TO The Washington Herald.
Pennington. Conn, May I'm refutlns
some of Charles s. Mellen's testimony in
washington concerning President Roose-
yelt's attitude on the New Haven road s
ownership of steamship companies, Her
bert Knox Smith, who was Commissioner
of Corporations under Roosevelt and who
was mentioned by Mellen as one who
could corroborate his testimony, today
gave out a statement of the conference
which reveals Roosevelt's attitude toward
Charles W. Morse in a most positive
light. but shows nothing of promises
or approval toward the New Haven.
The statement follows:
Col. Roosevelt has asked me to state
fully what happened at the interview OF
February 1. 1907. as to the New Haven
marine lines. made, at the time, 4
full memorandum as i always did as t.
important official matters of the inter-
view, so that / can give it now &C.
curately. -
The one question at that interview
was to the future of the railroads
steamship lines; whether the road should
keep them or whether they should go
into the coastwise shipping trust that
Charles w. Morse, the man who later
was convicted under the Federal bank
ing law) then was forming.
Could Sell at Profit.
Mr.. MelIen said he had a chance to
, sell the lines to Morse at a good profit;
that he preferred not to do so. because
it was necessary for his railroad to
have these water lines in order to in
sure low rates on raw materials coming
into New England for manufacturing
purposes: that his interest was selfish
one because the success of his road was
largely dependent on the prosperity OF
New England manufacturing. He also
said that Morse was getting up this
shipping combine simply to sell stock and
retain control, after getting his money
back. But Mr.. Mellen said that il the
railroad was to be attacked by the gov
eminent because Of its steamship hold
ings, he had a chance to sell and would
sell.
President Roosevelt then asked my
views. I replied that i could not say
anything about the legal side of the
matter, or whether the railroad had vio-
lated any law. because 1 knew nothing
on that side: that had been nvestigat-
ing only the economic and business side.
Taking this side only. said that as TO
Morse, and what 1 knew of him and
his methods. and the purposes of his
shipping combine, 1 felt strongly that 1t
would be better for the public of New
England to have the railroad keep the
steamship lines, rather than to have
Morse get them.
Danger to Public.
81 said that Morse then was forming
an enormous coastwise shipping trust.
which either would be successful. and in
that case under such management a pub
lie danger or would go to smash, and in
that case serious injury would result
to New England's trade, as well as great
loss to innocent investors. / said that
/ believed that the Morse combine was
so much over-capitalized that IL prob
ably would go to ruin. CAS- natter OF
fact, II did. 1t went completely to
pieces and into tangle of receiverships
N less than a year) / concluded by
laying that / saw no good, and great
of evil IL these steamship
lines were merged In the Morse combine
and that as a purely economic and busi-'
ness question of public welfare ! disap-
proved of amy transfer OF them to
Morse
President Roosevelt then turned %
Mr.. &alien md sAie: That ID what say