The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-06-06

WARRINGTON, June 5.---The present man.
asement Of the New Haven railroad to-day
furnished the Interstate Commerce Com
mission letter which contradlcts In an
emphatic manner one OF the importan,
the witness stand
Mr.. Mellen testified that In November.
1907 he was dumfounded when special
committee of the New Haven directors,
consisting Of Messrs. Morgan. Rockefeller
and Miller, made a report that they had
expended si1,ooo.000 In the acquisition OF
the Westchestcr and Portchester prop
critics.
Mr.. Mellon charged that the committee
mad failed 10 file an itemzed report-that
all the Information he could obtain from
Mr.. Morgan was the total and that when
he attempted to get details he was Sc
verely rebufYed
According to the evidence submitted to-
day by Walker ID. Hines, general counsel
or the New Haven In the form OF certified
copies OF the minutes OF the special COM
mittee, Mr.. Mellen himself was not only
member OF this committee but presided
at Its meetings from the time OF its APP
pointment by himself In September. 1906,
II. &.
when he asserted he was amazed to learn
that fll.OO0.000 had been expended.
Excerpts Read Into Records
Mr. Hines put A. p. Clark. secretary
OF the New Haven. on the stand, and the
latter read Into the records excerpts from
the meetings OF the special committee at
which Mr.. Mellen presided. Mr.. Hines
said:
81 feel 1t to be the duty Of the New
Haven railroad to bring to the attention
OF the commission minutes OF a special
committee appointed In connection with
the acquisition OF the Westminster, and
especially In view OF Mr.. Mellen's state
ment to the effect that In November, 1907,
when the special committee reported to
the board he did not know the cost OF any
OF the items.
81 felt that II was our duty to the COM
mission to call attention to the fact that
In December. 1906, a letter was addressed
to Mr.. Mellen by the Miibrook Company
and submitted by him to the special com
mittec which showed separately the cost
OF each OF the properties. amounting at
that time to over IS. 0O0, 900.
Il have felt that In view OF the proml-
hence that has been given to Mr. Mellen's
statement and that II has gone into the
record that these minutes may also go
into the record 30 that in the future we
might not be confronted by them when
We could not rely upon oral testimony.
j. w H. Grimm. Mr.. Mellen's attorney.
stated that whnt Mr.. Mellen had said in
substance was that the committees re-
port did not 20 fully into the items.
You may have understood that. Mr..
Grimm" said Mr.. Hines. but i don't
think anybody else did"
Letter TO Mellen.
Then Mr.. Hines had Mr.. Clark. the
secretary. read the following letter, ad-
dressed to Mr.. Mellen and presented by
him to the other members OF the special
committee-Aiessrs Morgan. Rockefeller
and Miller--nearly eleven months before
the time that Mr.. Mellen said he was
amazed:
Ny DEAR Mr.. MELLES: For your
Information we beg to state that We
have agreed to purchase all OF the
bonds and l4,l5&.4l0 shares, or 70L,
per cent OF the entire capital stock.
OF the New York. wes,chester and
Boston Railway Company. The
amount to be paid for same to be
the amount expended upon and for
the acquisition OF the properties.
We have had the accounts audited
by Jones Cesar, Dickinson, Wilmot
& Co, and they certify that ss.73s,-
1856 has been expended. which Is,
therefore, the amount that we will
have to pay.
We agree to the purchase from the
City and County Contract Company
stockholders their stock at cost. This
company was the company having the
contract to build the New York, West
chester and Boston Railroad. and we
had to purchase 1t In order TO get the
railroad securities. We agree to pur-
chase this stock from the stockholders
at the price they paid for II. This
account has been certified by tho
same auditors to be s727,500.
We purchased the entire stock and
bond issue of the New York aid Port
chester Railway. which has now $685.
Oo0 900 bonds and s25.O00,000 stock
authorized, for the sum OF $4,000.
Morris Park Contract.
We purchased $500 shares OF tho
New York Railroad and Development
Company stock. together with a con-
tract to cross Morris Park. at cost
OF sos, 900. for the sum OF $4,000
Therefore. the total sum OF $500
1856 represents tho purchase price
OF all OF the above securities.
We have already received and paid
for a large number of those securi-
ties and have received from you
s4O5O,OOO. We have agreed TO take
for them on January 10. 1907. there
fore require s4.54s,39s.56, provided
all OF tho securities were delivered on
that date and We paid or all existing
. mortgages
There are ss5o.2O0 In mortgages,
covering parts OF tho right OF way.
which do not have to be paid at tho
present time and. therefore. can be
deducted from that amount. which
would leave tho amount Se,l9s.56.
would he obliged TO you II you
will arrange so that I may get this
amount OF money on January 2,
1907, so that I may have II In hand
TO make those payments on the 10th.
with the expenditure OF this money
the Mlbrook Company will have In Its
possess on all of the securities above
mentioned and all OF the corporations
will be free and clear from any
floating Indebtedness, other than the
mortgages above referred to and the
city bonds, which are deposited with
the city, and which bonds will be re-
turned to us Yours very truly,
MiLDRooK COMPANY.
OAXLEIoH THoRNE, president
MeiIen Presented Letter.
The minutes OF the special committee
Of the board OF directors for the meeting
held at the Grand Central station on
ro.,,.r,, ions shnUpd that Mpsarq