Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1914-05-21
zen ?" asked Mr.. Folk.

ven?" asked Mr. Folk.
We'll, I don't know as to that"
Did the Boston & Maine have plen-
ty of money at the time of the pur-
chase of the Nashua and Rochester,
Mr.. Folk inquired.
Il never knew a railroad to have all
the money it needed" responded Mr..
Mellen smiling but the Rochester
road was considered a valuable prop
erty operating through a populous ter
ritory. It had a heavy traffic and
while l hesitated about its purchase. it
was regarded as a purchase of value"
What compensation did Morgan get
from the Boston & Maine directors for
his part in the acquisition of the Wor-
cester?''
Il do not remember that he was CIV
en- anything at all, except possibly a
one-fourth or one-eighth per cent
commission.
Mr. Folk produced a letter from Mr..
Mellen to President futile of the
Boston G. Maine. 1t was dated Jan.
Is, 1910, and referred to the acquisi-
ton of the Mutual Life holdings.
THE Mutual Life got 165 for its
stock?"
Yes, the letter to Mr. futile says
it held 1864 shares, so at 165. it re-
ceived S2,744,610."
rs it not true that all other holders
for their shares?''
Stock when held in big blocks al
ways brings better prices"
At this point recess was taken.
Afternoon Session
At the afternoon session. Commits
sioners McChord and Daniels again
were on the bench.
The total investment of the Bos-
ton & Maine in the Worcester was
$T,925, 900, was it not?" Mr.. Folk asked.
II presume this is So said Mr.. Mel
len.
Lease of Worcester
The Boston & Maine. Mr.. Mellen
continued, paid S250,000 year for
the lease of the Worcester road, but
made many improvements. the ex-
penses of which he testified, the con-
tract allowed the Boston q Maine to
reclaim at the end of each year.
Would the Boston e. Maine not
have been better off if it had contin-
ued the lease"
las it turned out l think it would
but at the time OF the acquisition of
the Worcester. things looked different"
Was the purchase of the Mutual
life holdings by Morgan ratified by the
Boston s, Maine directors"
Not at once. Mr. futile took the
matter up later with the directors"
You carried the transaction in the
New England Navigation Coz"
Yes
For how long?"
Il would not like to say off hand
or make a guess. The books will
show. The time was not very long"
The New Haven then owned all
stock of the Boston Holding Co. and
they owned the Boston & Manner"
suggested Mr.. Folk
That was the situation
Director of Boston & Maine
Were you a director of the Bos-
ton & Maine?"
Yes"
What We're the earnings of the
road at the time you acquir-
ed it,"
There is no way of determining
what were the earnings of a property
in the situation as it was when we ac-
CURED the road"
The lease was to be taken as the
only basis for the purchaser
We'll, yes, l should say So
DO you consider that good hnan
cing?"
Under most conditions l should say
So
Mr.. Mellen said that the Boston &
Maine handled the Worcester road
itself without reference to
the New Haven.
Did the law require the Mutual Life
Insurance Co. to sell the stock of the
W orcester road?'
THAT was the law"
Mutual Life Holdings
Does not the Mutual Life now hold
IS, 900 shares OF the New Haven?"
1T holds large block of New Hav-
en- stock but l don't know what
amount"
when Mr., Morgan told you he had
bought the Mutual Life stock at 165
what did you say?'