Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1914-06-10
ASSERTS MELL.EN
BORROWED FUND
Witness Says He Could Tell
What Became of Money.
CLASH OVER TESTIMONY
Counsel for William Rockefeller De-
clares He Is Too Ill to Appear Be-
fore the Interstate Com
merce Commission.

HlSFCC GOF1HlISSIOIs
Washington, June 8.-Former Pres
ident Charles S. Mellen of the New
Haven railroad was named as the
man who could tell what became of
the "lost 81, 100000" which has fig
ured so prominently in the inquiry by
the interstate commerce commission.
In his testimony before Commission
er McChord, L. S. Miller, president
of the New York, West Chester & Bos-
ton, declared Mellen had himself Dor
rowed $9,950,000 of the $11,000,00O
without the approval, consent or
knowledge of the finance committee
Of the New Haven.
The intimation was that as Mellen
had borrowed the money, he must
have known what became of it.
$2,9oo,ooo for MiIIbrook Company.
In considering this point the wit
ness said that Mellen knew that ST.
100000 of the $11, 100000 had been
paid for the Millbrook company
Mr.. Mellen testified" Mr.. Miller
continued, chat at that time he did
not know what was paid for each of
the West Chester acquisitions"
]. w. H. Grim, attorney for Mr.. Mel
len, denied that was Mr. Mellen's tes-
timony.
''Mr Mellen," he said, made no
such statement. He said he did not
know the individuals from whom
the various securities were bought"
$2,9oo,o00 Was Deducted.
In considering this point the wit
ness said that Mellen knew that ST.
100000 of the S11,000,000 had been
paid for the Millbrook company and
that therefore this sum might be de-
Quoted from the money concerning
which Mellen testified he knew moth
ing.
How the New Haven and it's sub
salaries kept their financial affairs
all in the family was testified to by
David Brown, examiner of the COM
mission, who has made an examina-
ton of the books of J. p Morgan G
Co. Brown testified Morgan gave a
check to the New England Navigation
company for $5,162.203 in settlement
for a balance due on account of the
transfer of block of Worcester,
Nashua & Rochester stock. This
check was endorsed to the New Ha-
ven by the navigation company and
then by the New Haven back to J. p.
Morgan e Co. All of these transac-
lions liquidated the debts between the
concerns, but in reality not a dollar
was taken from the vaults of Morgan.
New Light on Billiard Deal.
New light was thrown on the
Billiard deal in Boston and Maine
stock. According to Brown the New
Haven received the dividends on the
100000 shares of Boston & Maine
during the time the stock was held by
Billiard and during which time it is
claimed Billiard owned the stock out
right. The books, said Brown, made
this payment of the dividend appear
as a payment Of interest in notes
given by Billiard to the New England
Investment & Security company,
which were held by the New Haven.
IF an intent to conceal these facts
had been contemplated, could it have
been carried out in this way?" asked
Folk.
Eyes, and l accused the general au-
ditor of that very thing" replied
Brown.
The books, said Brown, made this
payment of the dividend appear as a
payment of interest on notes given
by Billiard to the New England In
vestment e Security company, which
were held by the New Haven.
II made the accusation to the gen.
eral aduitor of the company that it
was a Justification of records" Mr..
Brown said. 81 did not have the in
formation at that time to substantiate
my point, but l subsequently found
the file of the treasurer which veri-
fled my conclusion and I showed him
that file"
Rockefeller Unable to Appear.
jain A. Carver, attorney for Will
lam Rockefeller, made statement to
the commission showing that, accord
ing TO Mr.. Rockefeller's physician, 1t
would be dangerous for Mr.. Rockefel-
Ter to come to Washington and testify
He told of a serious condition of
Mr.. Rockefeller's throat, and said
what the physician feared was that
any concentrated effort, such as would
be caused by giving testimony, would
bring about nervous condition that
might prove fatal. Mr. Carver said
it was impossible for Mr.. Rockefeller
to write, as he was afflicted with
palsy.
The investigation into the financial
affairs of the New Haven was prac-
tically concluded, Commissioner Nc
Chord announcing the inquiry would
be discontinued