The Birmingham age-herald., 1914-05-21

May to MT. Melen. dated August ?, 1904. in which the payment of sums amounting in all to about $l40,o00 to $. |. Kelly we're mentioned and the importance of keeping the matter confidential was dwet upon.
 MT. Kelly, 1t is stated here.' said Mir. Folk, was to get shares of Montvillo Street Railway company amounting to ss9,76o and of Norwich. Street Railway stock aggregating s41, ,6s0. What was he to get all this money for?'
 T knew at the time. but cannot re- call now" said Mr Meilen.
 Connected With Bank
 Mr Mellen added that Kelly was con nected with a bank in Boston and he assumed that the sums were commits sions paid him to gather together the Norwich line and other stock.
 MT. Mellen explained that the New Haven acquired three electric lines, the New London, the Montville and the Nor wich, all in Connecticut For the New London s1O5 share was paid; for the Norwich sl10 share and for the Mont vile sl6O share.
 Did you pay. in addition, s99,76 to Kelly for his services in acquiring the stock of the Montvile line?'
 q don't remember exactly. The records will show"
 And l.es0, also to Kelly, as com mission for other trolley purchases?'
 That may be,
 q think, continued MT. Mellen. that these properties were a good purchase, because we subsequently, leased them to the Shore Line Electric railway for 5 per cent of their total cost to us. Who owns the Shore Line Electric railway?'
 Morton F. Plant of New York
 "He is one of the directors of the New Haven, is he not?''
 ''He is now
 Did the New Haven ever lend him money?"
 "Oh, mo-" replied MT. Melen. MT. Plant has more money than the New Haven road"
 Was that the only lease of trolleys you nader
 "No. We made a lease of some lines to Thomas l.. Dolan and his associates of Philadelphia
 Did any bankers have anything to do with this lease?'
 q do not think so. It has been a prof itable lease to the New Haven.
 MT. Folk, taking up the purchase by the New Haven of ,ne Rhode Island trolley System, asked if there had not been a break in the negotiations after they had been begun.
 There was an interruption of some months, possibly almost a year." an swered MT. Melen.
 What caused you to resume the nego- tiations after they had been halted?"
 "Oh I had conversations regarding the matter with MT. Morgan, MT. Dolan and others
 Did Senator Nelson W. Aldrich see you about the matter?"
 Yes. He called at my home at Stock bridge and asked me what the status of the negotiations was. I told him that, from my standpoint, l did not think I could yield to the terms. He said he thought them too severe. and that he was going to see MT. Dolan. as understood it. and I presume he did. I believe it was the call of MT. Aldrich on me at Stockbridge that resulted in the resump- tion of the negotiations. but how impor- tant was his influence or what action he took l do not know"
 Did the fact that he was a United States senator at that time have any weight with your" interrogated MT. Folk
 That was no influence with me in the natter
 Wasn't he a large stockholder in the Rhode Island trolleys?''
 'I think he vas
 What did he say that led you to think so?" Tt is not my recollection that he said anything to indicate 1t, but I believe 1t was the general talk at the time"
 The following letter from MT. Mellen to Cenator Aldrich, under date of August D. 1906, was read by Mr Folk
 My Dear Senator: Am I wrong in the impression that I was to hear from you again regarding the matter we discussed at our last interview, before taking any action?
 Tt was my. understanding you were to get some definite assurance that was to be transmitted to me, which I could use as a basis for presentation to my di- rectors for action, and handed you a copy of the trust that had been provided for the handling of this and other similar matters. and since my return to my office I sent you a copy of the contract by which the New York. New Haven and Hartford railroad becomes the guarantor of all the preferred shares that were to be issued by said trust.
 No Action Taken
 T have taken no action, on the under standing I was to hear from you fur ther, but the delay has been so long I am in doubt whether or not there is not some misunderstanding as result of our interview
 What was the definite assurance al- luded to?" asked MT. Folk.
 That Mir. Aldrich was to bring about a resumption of the negotiations"
 What was the reference to .trust?' p
 That refers to the formation of a voluntary association, which is done under the laws of Massachusetts, to carry out transactions"
 MT. Mellen testified that the price paid for the Rhode Island trolley system was between $19,000,0O0 and $2O, 900, O0O
 We paid about twice the value of the properties. but we thought they soon would be worth what we gave.''
 You knew there was bound to be a defcit?"
 Yes; we looked the matter souarely in thu face and did not deceive ourselves"
 'The deficit" MT. Mellen added, was larger than had been expected''
 Hasn't 1t been, on an average, $4OO, ,OOu annually"
 T think that for the year ending June 30, 191S 1t was not more than sS0O GOO. and believe that was the largest in any year"
 Did MT. Morgan advise this purcfia SC ?''
 The records will show as to that.''
 The hearing was adjourned until tomor- row morning. when Mir. Mellen will re- sume his testimony
 Cattle Sale in Selma Saturday
 Selma, May 2O-(SpeciaI. .)--Citizens ot