South Bend news-times. (South Bend, Ind.) 1913-1938, 1914-05-22
Former New Haven Head Ex-
plains Reason For Exorbitant
Expenditures in Purchase of
Subsidiary Lines.
PLAYED NO FAVORITES
IN PUTTING OVER BILL
I'VE Always Liked to Get Un-
der the Best Umbrella" He
Says of Railroads ConneC-
tiOn With Political Parties.

WASHINGTON. May 22.-Stupen-
dous prices paid by the New York.
New Haven and Hartford railroad for
short, and poorly equipped lines were
justified in view OF their potential
value. Charles :. Mellen. former
president of the New Haven. testified
al the interstate commerce commits
sion's investigation today
chief Counsel Folk for the commits
sion brought out that the New Haven
made a practice OF buying branch
lines at tremendous prices and oper-
atlng them AT heavy losses. causing a
constant drain on the treasury OF the
parent road Among the lines pur-
chased in accordance with this pol
icy were the Rutland railroad the
Buffalo. Rochester and Eastern and
the Tarrytown. White Plains and
Mammaroneck. said Mellen. Not one
OF them has paid so far he said
O. What can YOU tell about the
Rutland railroad?
A. The Rutland was a Vermont
corporation operating in Vermont,
New York and the province OF Que
bee IN Canada. We acquired our in
terest IN il from the New York Cen
trail.
O. What did you pay for it2
A. ! cannot say exactly. The price
paid for the stock was par I believe
Q. What was the market price OF
the stock?
A 1 paid - for the Is or IS
shares l bought 10 qualify as a di-
rector
Q. 1t now is selling at 25. is it not2
A. ! believe about that
Stock Drops Three -fourthS
This line OF questioning developed
that the stocks the New Haven had
purchased at par now is down 90 "a
quarter Of that price.
Gould not YOU have built new
road for less money"
New roads have 20 have fran
chiSes I would rather buy something
tnat others have spent their money
on"
Folk tried 20 get the witness 20 adj
NIT that graft had 20 be distributed
TO obtain franchises. but Mellon
would make only the general reply.
that some one is always i'm the way
and has 10 be taken care Of"
Folk then read a letter written bv
Mellen 70 Sherman NJ Whippie on
Feb. 13. 1912. promising 10 purchase
5000 shares OF the Worcester Rail-
way Investment Co. provided certain
legislation passed the Massachusetts,
legislature.
What was the legislature referred
to-"
The western Massachusetts trolley
bin"
why did YOU want this biIl to 20
through o"
1T gave the Naw Haven the right
to repurchase the trolleys IL formerly
owned in Massachusetts. The WOT-
cester Railwav Investment Co. owned
al the capital stock Of the Worcester
company The letter merely stated
that If Read a. Co. rendered the stock
within 80 DAYS after the passage ~
the bill We would buy IL at 115."
why did YOU have 60 pay 115
when the stock was selling at about
1852"
1T was holdup."
How was il done"
Road Held Up.
Notice was served on me that the
New Haven would have 20 pay the
price demanded 115) i'm order 90 get
the legislation through"
Were the transactions with Still
man r Kelly similar?"
why that was Connecticut trolley
matter"
Was that holdup. too"
We'll. he got the money"
Mellen said he found it unWise -
sign letters and a great many people
stood ready 10 receive letters from
him which were unsigned.
Ito what do YOU attribute this
change which permitted Of the pas
sage Of the Worcester stock measure
over the governors veto IN both
houses the second year?'
ITO a tremendous uprising ~ the
hadv polite i'm our favor
Mellen said the New Haven PLAYED
no political favorites in putting
through the Worcester stock bill
You mean 70 say that democrats.
republicans. progressives. or any
party looked just the same 90
Well. we always liked 90 get un-
der the best umbrella.