Evening journal., 1914-05-19
NELLEN Tells Of
JUCCLED MILLIONS
Goat Now Sorry For His
Part in the WeStcheSter
Deal
BLAMES ALL ON
FINANCIAL KING
By JOHN EDWIN NEvIN.
United Press StaH Correspondent.

WASHINGTON, May lg-1he goat"
had his inning today Charles s. Mel
len, tor ten years head OF the New
Haven railroad, admittedly the rubber
stamp OF the late j. r. Morgan, Will
liam Rockefelcr and the big financial
magnates that dominated that system,
today carried the responsibility directly
to these men.
FROM the dusty recesses of his letter
files Melen produced remarkable
prophecy written in 1907. Writing Of
the Westchester railway deal, in which
the New Haven paid S35,000, 900 for
only 20 miles OF rails and franchises,
Mellen said: "Many populations will be
damaged and in the end ! will be the
goat
lie frankly admitted today that this
was how it had worked out, and while
others had gone to Carlsbad he was
LETT to face the music.
While crowded room leaned for-
ward breathess, hanging on his every
utterance, Mellen told his tale OF Jug
gled millions. His letter files indicated
that Tammany had to be taken care OF
in the Westchester deal But he put
the responsibility for whatever action
was taken there at the door of OaKleigh
Thorne, New York iinancier and politi
elan, and cleared his own skirts.
i don't feel proud OF my part in Che
Nestchester deal" plaintively declared
the dethroned king. 81 should never
have been dragged into it. But even
was kept in the dark Mr.. Morgan and
Mr.. Rockefeller approved the deal. They
believed the Winchester valuable.
thought its stock worth ten cents a
pound And now | know / was right"
Mellen never faltered in his remark
able tale, He detailed with picturesque
details how j. p Morgan. in a half min
ute's telephone conversation made him
head Of the Northern Pacific. Then
when be came to the Now Haven he de-
clared in tones that carried to the outer
most recesses Of the rooms
Il was proud to be known as Morgan's
man"
That was his attitude throughout.
He believed in Morgan and the Morgan
methods. Only once had he clashed with
the stern linancier. Then he admitted
he was humiliated and shaned But he
tried TO keep that side light on the
life OF the dead hnaneicr from the rec
ord aid only told the facts under pro-
test and direct orders from the presid-
ing commissioner.
With trace Of pride IN his voice,
| Mellen admitted he was afraid OF MoF
gan. Of the dominating manner OF the
king Of finance. And in the same reply
he Indignantly refuted the suggestion
that he feared for his job II was Morgan
the man he was afraid Of, not Morgan's
power. And he hoasted that Morgan's
/ fellow directors. who had protested an
expenditure Of Sll 100000 when they
had expected to spend $5.0g0000, were
| like himself unwilling TO personally de.
mand Morgan's reasons for the act
The grizzlcd old railroad man recited
the innermost details OF the Mestelles-
ter negotiations where two paper roads,
| the New York. Westminster and Boston
and the New York and Portchestcr sys-
TENS were imlcaded on the New Haven
at total Of S35,000,000. He character
lied them frankly as physically worth
| less. their value being potential and de-
pendent on prospective development.
But Morgan and Rockefeller believed
in them. he said. and their Judgment
was usually good.
Folk showed Mellen a letter writ
ten in 1907 to Allen Wardwell deal
ing with the Westchester transaction
The following notation was at the
/ bottom:
Il am sick and tired of this whole
business. I fear that before it is all
settled many regulations will be
damaged and in the end will be the
goat"
did you write that?' asked Folk.
YES, and in. the light of present de-
velopments ! believe | was a proph'
ct"
what did you mean by the state
ment that you would be the goat?'
We'll. you know that when thing:
go badly in a big corporation like the
New Haven some men remain TO face
the music. Others go to Carlsbad OF
4 place like that, for their health.
am staying here to fight it out. So fal
as the entire Westchester transaction
was concerned, ! simply want to say
that don't feel proud OF the part
played in it. l don't think / should
even have been tempted into it. i
was a bad deal every way"
what was the total paid by tn,
New Haven for the Westchestel
roads?"
"Thirty-five million dollars"
For how many miles?"
about 26 miles"
Making it cost a million and a hall
a mile?"
well. it's a four track road anC
much of the property had to bs
bought by the foot
Mellen stated that he had talkeC
over the Westchester deal with hotf
Morgan and Rockefeller and that
while both admitted that the West
chester properties had been very
costly, they were confident that they
would eventually be very valuable.
Folk read a letter written to Mel
len by Thorne, in which Thornt
said:
Il have had several interview
with the city authorities, and an
sure | will get what I want Their,
are people is Fourteenth street who
are favorable to Westchester anC
others favorable to Porchester. II
the end both sides will have to b.
taken care of"
how we're they 10 be taken care
Of" demanded Folk.
We'll, he might have meant that h,
was going to take the Salvation Arm!
there to pray for them snapped Mel.
len, apparently disgusted with the
seemingly unnecessary question. Com
missioner McChord rebuked Mellel
for his flippancy, and Mellen tol,
Fofk he thoupht Folk couId answal