The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1914-05-14
Lid BLOWN OFF CELLAR
Of NEW HAVEN SECRETS

the railway. his chief counsel Grim,
broke in: I.
mfr. Mellen courts opportunity to.
give full and complete explanation OF
his connection with the New Haven.
He wants to testify fully and viii
make no mental reservations, and J
want to ask this commission to give
him that opportunity. In regard to-
his statement that he was assisting
the commission, think 1t should De
realized that this was meant as
joke"
Mellen ooncurred IN this statement.
Continuing. the witness said he
was made president OF the New Hav-
en- by the late ]. P. Morgan.
"How did MI. Morgan do this?" de-
manded Folk.
why he had the Directory elect
me-"
ibid Morgan make you any prom
ises at this timer"
"He did not. was then director
OF the Northern Pacific and suppose
that election to the New Haven presi-
dency was a promotion
Mellen said when he assumed once
he found 1t was the company's policy
to buy up stock in the leased 1ines
with view to ultimate ownership.
His first deal was the acquisition Of q
bare majority Of stock Of the Central
New England railway for 5000. 900.
The deal was to secure completes
control of the Worcester and Connao
ticut eastern trolley company.
The naxt big deal related by Mellen
was the purchase OF the New Haven
city trolley system. In all transac-
tions, Mellen said, he had acted for
the company but with the advice OF
the directors. Folk then took up the
financing of the New York West
Chester and Boston railway, an cleo
tric line. Mellen said that 5000
shares OF New Haven stock were
turned over to him to get ponsessioM
cf naincrsty holdings af tho co1npanx.s
The value Of the sock was 1900. 900
and he was to turn it over for $4,000
West Chester shares when certain
conditions were carried out.
who held this stock and who was
to see that these franchise defects
were corrected?" Folk asked.
"The man is dead. It was former
Police Inspector Thos. Byrnes, OF
New York." Mellen replied.
Mellen said he had given due bills
for some West Chester stock turned
over to him and some that was still
They amounted to over
10000 but Mellen insisted he could
not remember to whom he paid the
Although interrupted almost at tho
very commencement Of his tale. he
showed how he personally paid out
over a million dollars for railway
stock, the value Of which he placed
at ten cents pound"
Mellen merely laid the ground work
today for the painting Of what he
promises shall be his masterpiece.
Then he was excused to go back to
New England for documentary evf-
dence to back up his narrative. He
will continue his story next Tuesday
and the interstate commerce commits
sion promises that there will be no
until it Is complete in
every detail.
Standing out above everything else
in Menen's story today was the fact
that he was put at the head OF tbs
New Haven by Morgan. Apparently
he wanted to tell all about the agree
ment which made him the guiding
spirit in all of the wonderful manfpu-
Iation Of New England's railway sys-
TENS. But the commission's counsel.
Jos. w. Folk, for some unexplained
reason, shunted him from this line
and took up one of minor transaction,
the acquisition OF some $4,000 shares
Of stock Of the New York, West
Chester and Boston railway. This is
he electric line between the Harlem
river and New Rochelle IN New York
state over which the fast flyers OF
he New Haven road are rushed east
ward in New England.
Mellen frankly admitted that the
New Haven directors put at his dis
oosal 81 200, 900 worth of New Haven
stock to be used in acquiring the 24--
lao shares OF Westchester lines from
persons Of influence. He said ne did
lot know the identity of these peopls,
hat he did business through the late
Tom Byrres, New York's famous thief
catcher and establisher of the Wall
street dead line.
Inspector Byrnes negotiated for the
shares and jMe1len paid for them IN
due bills, redeemable either
n New Haven stock OF in cash.
When asked to identify the persons
Who got the money. Melien leaned far
,ver the table, and looking Folk
'auarely In the eye said:
'They were all alike. They woulc
idle into my Offices and get by my
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