Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-05-19
AWEDBY MORGAN,
MELLEN TEST|F|ES
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ty. In the first instance the power was
in the finance committee. then in the
executive committee and finally in the
entire board"
Now" suggested Mr.. Folk. how did
you happen to get the 5000 shares of
New Haven stock which was to be ex-
changed for Westchester stock?"
Mr.. Byrnes. former police inspector
Of New York, asked that the shares be
placed in my hands so that he might
not have to deal with corporation.
That was natural"
"As to the exchange Of this stock, -"
continued Mr. Mellen, IAN impression Is
abroad concerning the due bills I gave
that is erroneous. think | gave due
bills aggregatng about $4,000, totaltng
about two dozen due bills"
Were these due bills presented sub
sequently by persons whom you did not
know" asked Mr.. Folk.
Very Little Cash Paid.
Yes" replied Mr.. Mellen. Some Of
them were. while others were presented
through Inspector Byrnes. Some Of
them never have been presented. l don't
think any cash was paid In the West
chester transaction except for such due
bills as 1 gave. In such circumstances.
I paid my own cash and took the stock.
Then I became quite a stakeholder
A check for s10,45O issued by Mr.. Mel
len to his own order February 2, 1903,
was offered by Mr.. Folk, who asked
what 1t was for.
THAT amount was paid to me in cash
and with the cash took up certain due
bills and paid also dividends on the stock
which had accumulated. 1 frequently
paid dividends to the holders Of the stock.
These persons were sent to me by In
spector Byrnes."
Mr.. Mellen. asked If he remembered
any others who presented due bills to
him besides the man he described In his
testimony last week as looking like he
came from the East Side," replied:
II might remember If I heard the
names"
How about the man who appeared to
be from the East Side. as you said?'
II believe he was only messenger.
did a good many come to you who
appeared to be just messengers?
Il think there were more who came to
me for the dividends on the stock that
had accumulated while the shares were
in my hands. than to redeem the due
bills" Mr.. Mellen replied.
Stock Value Potential"
Was the westchester stock of any
value?"
We'll, as have said before, 1 did not
think it had any actual value, but it did
have potential value. 1t runs through
good territory"
lis the New York, Westchester and
Boston not operated now at loss Of
$1.250.OOO year?'
well, you have the figures as to that
and / have not" said Mr.. Mellen.
Mr.. Mellen testified that the question
Of the New Haven acquiring the New
York, Westchester and Boston or the
New York and Port Chester was first
brought to his attention in a letter from
E. NJ. Herr. president of the Westing-
house Company. This was about 1905,
the witness stated, and his letter in re-
ply to Mr.. Herr was read by Gov. Folk
1t indicated that Mr.. Melien did not
think much Of the proposition. but the the
president Of the New Haven intimated
he would like to keep track Of the mat
ter. With other things the letter said:
ut looks to me like the company was
at the proper time
When did the Westchester proposition
como up next?'
'Feelers' came to me at various times,
to ascertain If l would be interested in
acquiring the Westchester. paid no at
tention to all this and refused to lay the
matter before the directors Of the New
Haven until Oakleigh Thorne came along.
Thorne Had Control.
Mr. Thorne told me, as 1 recalled, that
he had acquired control of both the
Westchester and New York and Port
Chester, or else he said he could acquire
them. We talked some time over the
matter. and think told him the roads
had ben offered to me. but not taken up
by the directors. He wanted me to take
1t up with the directors, and said had
no objections and promised him to bring
it before the board"
Mr.. Mellen testified he laid the propo-
sition before the board in the summer
of 1906 and that Mr.. Morgan moved that
committee be named to look into the
matter.
Were you surprised?"
Il thought 1t indicated the board would
do something I had not expected it to
take up"
Mr.. Mellen further said he. as .presi-
dent of the New Haven, named Messrs.
Morgan. Rockefeller and Miller as the
committee. He himself was member
ex-officio.
Mr. Mellen said that when the COM
mittee reported about a year later that
the sum of $l1.155,OOO had been expend-
ed he found fault with the report as
not being sufficiently in detail.
Inundated by Morgan.
II saw Mr. Morgan" he said, land
told him that all details of the matter
should have been set down and that
the report should have told how each
separate sum vas spent I told him /
might want some time to look UP some
of these items. Mr.. Morgan was very
abrupt in his answer to me. He was dis
turbed at that time. as it was during
the panic, and l lett his once feeling
much humiliated.''
.Wbat did Mr.. Morgan say?''