The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-05-21
Matter of BookkeepinG.

Mr.. Mellen acknowledged that the Bos-
ton and Maine could have used the
money to better advantage In other direc-
tons. He admitted too that the interest
charges on the money required to pur'
chase the road amounted to more than
the annual rental which the Boston
and Maine had been paying. But Mr.
Mellen pointed out that under the TWEEN
ty-fve years lease the Boston and Maine
could not capitalize the money put into
the road until the expiration OF the lease
itself. so that all these expenditures had
to be carried on the Boston and Maine
books.
O. What did you say when Mr.. Nor
gan called you on the telephone and said
he had bought this stock7 A. said
Jerusalem
Q. why did you say that? A. I was
surprised.
@. Why did you not say "Mr. Morgan.
by what right did you buy that stock?"
A. Why. that would not seem to me a
proper way to approach Mr.. Morgan.
O. Were you afraid to do so? A. ]
was ne afraid OF him. I do not think
Ne could have done me physical harm
I respected him. I had greater faith In
his judgment than in my own. I yielded
my judgment TO his and In nearly all
Instances his judgment was better.
Q. His was the master mind In the New
Haven and the Boston and Maine, was II
not? a. His was the master mind pretty
near everywhere Mr.. Morgan was
@. You did not demonstrate with him in
anything he did? a. / have discussed
many things with him I have had one or
two or three unpleasant interviews with
him. Mr.. Morgan was a man I held in
very high respect felt that II We dis
agreed the probabilities were that l was
wrong. I have gone back to instances
where we disagreed and tried the case
over again and found that I was wrong.
| think II II came to an up and down dis
agreement on an ordinary business matter
Mr. Morgan would have yielded TO me.
Q. DO you think YOU could have saved
the Boston and Maine In this transaction
A. I did not feel that the amount involved
was sufficient TO warrant a protest Of that
kind.
Q. II was only two million and some
| odd dollars? A You must remember that
| this matter waa afterward presented to
the Massachusetts, Railway Commission,
and they approved II
Q Did Mr. Morgan go before the Com
mssion7 A. No
Q. Who didf A. MI futile. Ho was
| presidea; OF the Boston aad Maine AT that
| time.
q. II YOU had your own way then would
YOU have purchased this stock? A. That
is asking me for an expression Of opinion
that would Involve hindsight
Q In the light OF subsequent events,
was Mr., Morgd"s Judgment JUSTIFIED? A.
| think his judgment would have been
justified IA all matters connected with the
New England lines had he lived.
@ Suppose one OF tho other directors
had called you up and told you he had
purchased 1854 shares OF stock? None
of the other directors would have dared
do anything OF that kind. would th.y7 A.
That is not n proper word TO use. 1t was
not In the nature Of their business Mr..
Morgan was engaged In buying and SELL
Ing railroads and corporations. All wares
were being brought 10 his counter /
never knew him TO make n single dollar In
any transaction that / have been cog
infant Of
Mr.. Mellen will go on tho stand again
to- morrow