The Detroit times., 1914-05-22
MELLEN TELLS PROBERS
HE ACTED AS
SCAPEGOA1
CONTINUED from Page OneD
tcontinusd from Page OneJ


(COntinued from Page One.D
explained There was nothing
would not have done TO have aided
Mr.. Morgan"
Mellen's voice had broken for the
first time In the trying ordeal. There
were real tears in his eyes He was
very plainly overcome by his emo
tons.
Did YOU ever tell Mr. Morgan !
son about this?" intercepted Folk.
Eyes. sir; did" was the answer
Now there was a very distinct trace
OF anger In the dethroned railroad
kings manner.
when he came and told me that
he believed II would be for the best
for me 10 leave the New Haven sys
tenn / told him that | did not thinR
this proper reward for what | hac
done in accepting disgrace to save
his father. He felt badly about II
and assured me in broken voice
that IL his father had been indicted al
this time II would have killed him.
but he accepted my resignation.
The commission believes through
MelleE IL has demonstrated, with alb
solute necessity for the proposed law
giving the interstate commerce com
mission control OF all Of the finances
OF railroads. Had II been In posses
sion Of that power II Is claimed the
Westchester deal which cost the New
Haven 5000, 900; the Grand Central
terminal Improvement; and numer-
Gus other deals which were pyramid
ed into the floating debt that finally
wrecked one OF the richest railroad
properties in the country. could not
have been undertaken. IL is expect
ed the commission will recommend to
the senate that it be empowered to
take more intimate interest In rail-
road extension and that this author.
ity will be given.
Mellen's frank endorsement OF gov
eminent control OF railroads and his
declaration that the interests OF troll.
ley and steam railroads are now so
wCdded that their divorce is impos-
sible has impressed the commission.
IL wss the opinion OF one of the
greatest experts in the country, and
as such will carry weight when the
commission sums UP It's conclusions.
Questioned about the Rutland rail-
road connection OF the New Haven,
Mellen said ii was natural develop
ment OF the New Haven lines to the
west and into Canada, and that one
fourth of Its stock was owned by the
New Haven when he left the prest-
dency.
The New Haven paid 800 a share
to the New York Central for the
stock, which is now quoted at $25.
Folk expressed great surprise to-
day when told that William Rookie
Teller was at New Haven direc-
but would not say whether the broth
er OF the oil king would be compelled
to come here for examination.
Folk produced letter written by
Mellen to Sherman VI. Whipple, q
Boston lawyer agreeing TO buy stock
OF the Worcester Consolidated Street
Railway Co, held by William Reed
& Co., providing a certain piece or
legislation was passed by the Massa-
chusetts legislature, known as the
western Massachusetts trolley bill,
and that he had agreed TO buy 5000
shares at $ll0 each. $40 more than
the New Haven had paid for other
stock OF the trolley company. held in
its treasury.
"Ths was a hold-up," snapped Mel.
len. "WhippIe served notice that II
we wanted this legislation we had
better agree TO buy that stock"
Mellen said he believed public SEN
timent was behind the western troll
ley bill, but he thought 1t wise to pla-
cate Whipple.
"Whlpple was a prominent politI-
eian," said Mellen, "a former candl-
date for United States senator, and
a man Of great Influence In his party.
The Massachusetts, governor was a
Democrat, so we did not want his an
taqonlsm. But the bill was passed
by both houses only TO be vetoed by
Gov. Foss. Next year, however, the
legislation became law"
Mellen was asked II the New
Haven had not worked along non-
partisan lines, using any party
in power.
why, Of course" he said, I'VE
always got under the best ur1-
brella."
Mellen again told OF employing
Prof Bruce Lyman. OF Harvard. for
100000 10 advise the New Haven re-
garding employment of various news
paper representatives He said he
had no personal knowledge OF the
transactions, but that he had no doubt
all OF the men gave a good return for
their money.