The Barre daily times. (Barre, Vt.) 1897-1959, 1914-05-22
TELLS HOW HE JUST ES-
CAPPED ANANIAS CLUB
Herbert Knox Smith Kept
Memorandum Which
Saved the Witness

with Mr.. Roosevelt when the latter was
president.
These interviews showed plainly that
the federal government would not dis
turb the New Haven ownership of wa
ter lines. Mr.. Nlellen testified that Mr.
Roosevelt had told him the New Ravens
acquisition of steamship lines would not
be interfcred with if the New Haven
would refuse Charles w. Morse's offer Of
500. 100000 for the lines.
This was in 1907 before the panic,
when Charles w. Morse charged that he
was being pursued and prosecuted by the
Roosevelt administration.
Later President Roosevelt felt that
Mellen had gone too far in acquiring
additional steamship lines and accused
him of SHARP practices"
i Mr. Mellen was finally saved, however,
from membership in the Ananias club
and from the charge of having been too
/ fresh"
From this sad fact Mr.. Mellen, in his
own opinion, was saved only by Goods
providence"
| Mr.. Mellen had an interview with the
president, lie said, concerning the sale by
| the New Haven of its steamship lines.
1t was at this meeting that Roosevelt
| told him that If the New Haven COM
pany did not sell its steamships TO
Charles W. Morse Mr.. Melen "would ex-
perience no trouble with his administra-
tion for the holding of steamships
II happened, said Mr.. Mellen, that
| Herbert Knox Smith, then commissioner
OF corporations, was present at the in
terview and returned to his Office and
made written memorandum of the
conversation that took place.
Mr.. Melen after the interview re-
turned to New York, reported to the
late J. P. Morgan and later acquired
two more steamship lines. Then Mr..
Mellen learned that Mr.. Roosevelt was
"hot." Mr.. Mellen was much disturbed.
"Where Mr. Roosevelt thought | had
taken advantage of his confidence" said
Mr.. Melen, was in the acquisition OF
the Windsor line and the Merchants &
Miners, and | was very much disturbed,
as it seemed to come to a question of
veracity between the president of the
| United States and myself"
"What did the president complain Of 2"
asked Mr.. Folk.
'.He thought that ] had gone further
| than | should. and outside OF the dis
cnssion at the interview | had with
him"
| at which interview
"The interview in which had spoken
of the Morse offer and which | had
turned down. The president thought
that ! had gone too far and was too
| fresh"
| 1t appeared that Mr.. Melen said he
recalled that Herbert Knox Smith was
present at the interview, and that the
latter had written memorandum. Mr..
Melleu said that Mr.. Smith was me.
thodical man, and just as soon as the
interview ended he had gone to his office
and prepared the memorandum.
ut was Gods providence that he did"
said Mr. Mellen. "and / was very much
relieved when / learned that he had
made memorandum and kept it, It
was because of that | urged Mr.. Buck
land to have Mr. Smith meet me at the
presidents office and state what he had
written and clear the matter up"
$50 the steamship comanies did not
60 into the bill that WAS prepared and
filed the latter part of 1907 by Attorney
General Gonaparte for the dissolution of
the New England transportation mo-
nopolyi" said Mr.. Folk.
"They did not"
"Why were they left out"
because Mr.. Roosevelt kept faith
with me. He had said that if ! did not
sell 10 Mr.. Morse should experience no
trouble with his administration for any
holding of steamships"
This statement by Mr.. Mellen explains
something that has puzzled Washington
for several years.
Nobody here could understand why the
steamship lines we're left out of the
Sherman antitrust law suit, begun by
Mr.. Roosevelt's attorney general against
the New Haven. This suit later was
practically called off by Roosevelt and
was discontinued altogether by the Taft
administration.
1t was on account of threats to re-
sumo such action that Attorney General
MeReynolds has brought about an agree
ment for a voluntary dissolution, in
Guiding the steamship lines.
Mr.. Mellen said he had three inter-
views with Mr.. Roosevelt in 1907; the
first with reference to steamships; the
second was in reference to the Boston 4
Maine merger, and the third was in
October.
1t was at the third that the president
rebuled him for sharp practices and for
being "too fresh" Mr.. Melen held this
interview. he said, at the direction of
j. Pierpont Morgan. 1t was not long
after this that the dissolution suit was
filed, but the steamship lines we're left
out.
Outside of the Roosevelt topic the
chief incident in Mr.. Mellen's story to
the interstate commerce commission yes
terday was his bold declaration that
government ownership of railroads in
this country is certain to come.
The story of the Roosevelt episode
came as complete surprise even to
Counsellor Folk. He was examining Mr..
Mellen on interlocking and monopolistie
railway subjects and came upon a let
ter written October 3, 1907, by Mr.. Mel
len in which he referred to a trip to
Washington to see former Commissioner
of Corporations Herbert Knox Smith.
Mr. Folk was about to pass it over,
but decided TO ask Mr.. Mellen if he
could explain it.
Solicitor Folk failed in an attempt
Al show that Mr. MalIan had maid out