The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-05-22
Mellen Suggests Absolute Mo-
nopoly of Transportation as
Solution of Problem.
CONTINUES AMAZING STORY
Admits He practically Was
Fired" From Presidency of
New Haven Railroad.

incr president Of the New Haven Rail-
road. TO the Interstate Commerce Com
mission to-day as Il solution OF tho
American railroad problem. ITO get
efficiency and economy" declared Mr..
Mellcn, there must be a monopoly
and that monopoly is certain to be the
United States government.
a moment later Mr.. Mcllen remarie-
ed every time IL railroad official comes
to Washington he has to take off his
hat to some government official.
Mr.. Mcilen appeared to have rccoV-
cred entirely from his fatigue OF yes
tcrduy when he appeared before the
commission to-day to resume his te3-
timony. He responded TO interroga-
tories fred 1T him by Chief Counsel
Joseph W. Folk promptly, never hesi-
tating 4 second for a word. He told
at length the story Of his steamship
transactions with Charles w. Morse.
Concerning these, Mr.. Mcllcn ex-
planned hc felt 1t desirable to confer
with Colonel Roosevelt, then Pres!-
dent OF tho United States.
He told the President he had re-
ccivcd an offer of $2o,000.000 from
Morse for the New Haven Steamship
holdings and felt inclined to accept
1t, because thus the New Haven would
be able To turn the property into cash.
Mr.. Roosevelt, he said, apparently was
anxious that Morse should be checked
of steamship lines, and urged Mr. Mel
len not TO sell.
ASSURED BY ROOSEVELT
THERE WAS NO NEED OF FEAR
Mr.. Mellen said at that time he was
apprehensiye OF the enactment of q
from owning or controlling water
lines, but he was assured by Mr.. Roose
welt that, so long the law was re-
garded as it then was, the New Haven
need have no fear about it's water
line holdings.
Az to the acquisition Of New Eng
land trolley lines. Mr.. Mellcn said he
had proceeded on the theory that
transportation might better be handled
on electric lines than on steam roads.
He had been convinced that tho diver
sion of much of the trarrc of steam
roads TO electric lines would be moro
economical. rates lower. and service
generally more satisfactory to the
public.
Lato in the day the witness at
tention again was directed to CAM
paign contributions made by the New
Haven to the Republican National
Committee Of 1900 and 1904. He re-
iterated statements he previously had
made.
When asked why he relinquished
tho presidency of the New Haven MIR.
Mencn said he practically was fired"
Mr.. Mcllcn to-day repeated testi-
nony given BY him before Commis-
aioner Prouty in Boston about year
ago regarding 100000 profit he made
on tho sale OF New Haven stock that
was turned over to him to he put OH
the market, so that IL could be listed
on the New York Stock Exchange.
And that was the famous 100000
that / gave to Republican campaign
funds added Mr.. Mcllen. The money
xIl an
did Mr.. Meyer have anything to
do with getting this money!" asked
Mr.. Polk.
DIRECTORS AUTHORIZE
POLITICAL Con TRIBUTION
"He had nothing to do with re-
ceivinS or soliciting it, ] want to say
right here that that S102. GEO legally was
my money. ] sold the stock and was
fortunate in handling il so that IT made
II profit. because OF being president
of the road, ! would not take the
money and told the directors SO. They
authorized me to make the political
contribution. At that time there was
no legal or ethical objection to cor
porations making political contribu-
tions."
Mr.. Folk showed Mr.. Mcllen Il mem
orandum Indicating the payment OF
money as campaign contributions. II
can explain that memorandum said
Mr.. Mclien. 1T was prepared by Mr..
Kochcrspergcr, who was in charge of
tho finances of the New Haven. I want
ed to know what had been paid in
political contributions in other years.
That memorandum shows that in the
Mckinley campaign four years pre-
viously, $4,000 had been contributed.
Based on that. i made the same con-
tribution to the campaign OF 1906.
know nothing personally OF the Nc
X N /
was pursuing my peaceful way rs
president of the Northern Pacific"
According to this memorandum
them insisted Mr. Folk, the records
of the New Haven. which do not
show this contribution, are false?'
You say that; l do not. You arc
at liberty to form your own conclu
sion"
Under what circumstances did you
leave the New Haven?"
NIELLEN HEARS THAT CHANGE
is CONSIDERED DESIRABLE
IL was practically nrei:," replied Mr..
Mcllcn. He said it was intimated by
man close to the directors that
change was considered desirable.
LAS / wanted n change myself" con-
tinucd Mr.. Mellen. u welcomed the
suggestion"
Mr. Mcllen testified that IL contract
was offered him, under the terms OF
which the New Haven was to retain
his services, In an unofficial capacity,
to give advice, etc, for five years at
an annual salary Of $4,000.
Later he said, two members OF
the committee that had arranged for
my retirement called on me and said
the matter of compensation was caus-
ing embarrassment, and asked me If
/ would relieve them of this. I then
practically made them present of the
$150.000."
Questioned moro in detail as to his
salary as president OF the New Haven.
Mr.. Mellen said that at the time Of
his retirement, it was $4,000 n year.
81 started at s50.00O,' lie said. "and
later this was raised TO $4,000. When
the salaries of all employees were cut
10 per cent, I cut myself to $4,000.
He added that hc received at the
time OF his retirement O lump sum
Continued on Tenth Page.)