New Britain herald., 1914-07-11
hfllEN DOMINATED NEW HAVEN BOARD
Persecution Cause E Of Systems Unstabtncss.

Washington, July Il. = That *Charles S. Mellen, former president of the New Haven railroad system, and not the late J. Pierpont Morgan. I.dominated'' the board of directors Of Ithe New Haven, and that the New Haven would today be in good |standing in the railroad world but Tor incessant and interminable inves- |Hgations and hostile legislation are
 the broad statements made in the
 brief filed Thursday by William Nel-
 Son Cromwell with the interstate
 commerce commission in the pending of New Haven affairs.
 MT. Cromwell appears before the .commission for William Skinner and ICharles F. Brooker, both members Iof the New Haven board of directors. . The distress of the New Haven is at- / Itributed to the inability to finance the / Obligations of the road because of
 Legislatures of Massachusetts, Rhode
 Island and Connecticut, the conflict . ing laws of these three states which . do not permit long term bonds se-
 cured by mortgage upon the com Ipany property. the forced separation | of the properties of the New Haven be- cause of the antitrust law, the al- |leged general business depression, land the increased cost of operation land maintenance without an increase lin freight and passenger rates.
 Meilcn As Dominant Figure. MT. Cromwell declares that the |New Haven directors were men of the highest character, and that no one or { T., r1oti iyafo in, |the stock or the operations of the |system, or even made dollar in that |way from his connection with the [road. He asserts that the directors |acted in the best of faith and with [grcat intelligence, but all the meet |ings were dominated by MT. Mellen | It was MT. Mellen. who, according Ito MT. Cromwell, did all that was [done in the relations with the Grand Trunk for which MT. Mellen, in his |testirn ony, said he took the vicarious |part for MT. Morgan, and was indict- led because, as MT. Morgan's son said, Recording to MT. Mellen, it would have killed his father to have been Indicted. It was MT. Mellen, too, who Conducted the whole deal with Bii- lard out of which Billiard made $1,- FOG, 1000 profit, although the minutes |0f the board of directors stated that "aI shares and profits In the Bostor, and Maine stock held by Billiard, less la reasonable compensation for his services and risks and the amount Of his actual expenses in connection |with the purchase and sale of the Boston and Maine stock. should Y be |vested in the New Haven Railroad |company' at the close of the deal 5. Directors in the Dark.
 Mir. Cromwell says that the direc- 1 tors never knew a thing about this
 whole matter It was all attended to, by Melien and Billiard, he declares. Mellen denied on the witness stand that the New Haven had any interest in the stock of the Boston and Maine ISffer the sale to Billiard, and Billiard
 made the same statement. But Mr. Cromwell points out that MT. Mellen also testified that the minute quoted above was adopted no daubt by the New Haven directors to "strengthen
 his hands to force a reasonable
 settlement with Billiard"
 The policy of acquisition of trolleys,
 Steamship lines and all manner of
 federal railroads, together with the
 Westchester and Port Chester pur- chase, to get an entry into New ofK city is to be attributed to causes in
 existence, he says far back in the history of the road. They were in operation before MT. Mellen became
 president MT. Morgan urged them
 because of the sentimental interest.
 He had been born in New England,
 and his fathers tomb was in the capital city of Connecticut, and he was impelled to bring all New England
 under the New Haven system.
 Wants to Be Let Alone.
 Tn his final appeal to the commis- sion to view the New Haven in the
 light of the historical and business
 conditions that surround the system.
 MT Cromwell says that the physical
 condition of. the road is good, that it
 is operated by efficient and loyal
 officials and that the main line Is free
 from a mortgage lien, which is
 statement that cannot be made by any
 other railroad of equal importance in
 the United States. Therefore, all the
 New Haven needs to rehabilitate it.
 self, he declares is to be let alone. and
 this means that it's directors should
 also be let alone.