The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-05-23

ness on the Grand Trunk agreement he
had taken UP the affairs Of the New York,
Ontario and Western Railroad, a sub
sldiary OF the New Haven.
Mr.. Mellen said the ontario and West
ern was the second largest acquisition by
the New Haven He had first tried to sc b
cure the control OF the Lehigh and Hud
son River Railroad. which connected with
the Central OF New England. He wanted
an outside belt line around New York
city to reduce hoatage. particularly IN
bad weather and fogs.
81 met with opposition by the trunk
lines" said ne. and they Bought the Le-
high road. ! then went and bou lat the
Ontario and Western"
Mr.. Mellen admitted that ontario and
Western stock was selling at 500 or s34
when the New Haven started TO acquire
II and that the New Haven paid about
s43 share for control
when you buy stock for the control
OF a railroad" he SAID, you cannot buy
II at the market price"
Mr.. Mellen said the New York Central
tried three or four times to buy the rua0.
After series OF questions in regard 20
the AFFAIRS OF the ontario and Western
Mr.. Mellen finally said:
The Federal Government jumped in
and accused me OF a number Of things"
The Tarr,town Railway.
The Tarrytown and White Plains Rail-
way was bought by the New Haven for
s963,00o. Mr.. Mollen admitted that t.!
was now running AT n loss. but said that
" the plans made for It had not miscar-
ried II would have become q paying prop
osition. Mr.. Mellen said he did not be-
lieve In charter acquisitions.
81 would rather invest after some one
else has expended their money for in
tangible assets and moUey has been given
away" said he.
Q. Money given TO whom \. To the
fellow who Is IN the way.
.. Who are in the way? \. Lots of
people.
Q. Explain. A. No explanation is nee.
essary TO a man OF ordinary intelligence
who has 10 do with these matters. Pol!t!-
cal bosses generally have something 10
say about franchises
q. You find the acquisition OF charters
expensive? \. | got all | wanted In the
Westchester transaction. ] got my ex-
perience there.
Mr.. Mellen gave an account OF the ac-
quisition of gas stock by the New Haven
through subsidiary company, the Housa-
tonic Power Company. The subsidiary
paid from sos 70 $40 a share for stock OF
the Waterbury Gas Company and the
stock was being sold about the same time
for about $50 a share.
why did the New Haven. through its
subsidiary company, desire tn 20 into the
gas business? asked Mr. Folk
ut did not" replied Mr. Mellen. "The
situation was this The Connecticut Rail.
way and Lighting Company. which we
TOOK over under a lease had gas and cleo
trio property scattered through Connectl-
cut II was part OF the property that
came to us under lease. That put us into
the gas and electric business.
I'VE kept In the business until We had
an opportunity to dispose OF them by lease
and we leased them 10 the United Electric
and Water Power Company. Among the
properties that came to us was a lease of
the Waterbury Gas Light COMPANY. and
mat WIS assigned to us. That lease tx.
pired April /, 1914.
we felt II was a very desirable lease
making profit OF not Npss than 500 OOO
year, and 10 obtain that property We
thought that II would be advisable To have
control OF the company think very
likely that directors of the New Haven II,
the vicinity OF Waterbury had stock-Nr.
Whlttemore and Mr. Elton think the.
turned the stock over TO our co,nuanv"
10 you know th't they bought stock
IN tho Waterbury COMPANY After me
Folk "'N''
Il have no knowledge of that At all -
g The par value OF this stock was
s25 and you took IL from these directors
AT about 500 or $50" \ Possibly.
., You don't know what these di-
rectors paid for their stock. do YOU i.
] dld know al the time I do MOI know
now. Ny mental memorandum book A.,
not big enough to carry all these figures.