New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-05-15
MFJ FIN BLAMES MORGAN
FOR NEW HAVEN LOOllNG
CoutIuued from paGe ]

NJ their leased lines, ne sald' Hpp~'
10 with the view To their merging -
union with the main line. or parent COZ"
many They had control OF severai troie!
companies and several steamship GU"
panies"
.r,,d that pol,cy continue during you
term
1T did
Mr.. Mellen said that the hrst propos'
ton he took I'd was the acquisition OF '"'
Central New England Railway Compahs
9TH. next that attracted my attention
he went on. was the situation We "e''
I'm with the Worcester & Connecucu
Eastern Railroad Company. which was
trolley line running from worcester SOUR
TO Central Village. Conn. very CLOS
naraIIeI with the Norwich & Worcester
\ Railroad Company, which was a LEASED
line Of the New Haven. ! found TINS SIT
uation: One share more than one-naii o.
IN. capital stock was In the treasury %
the New York. New Haven X HartIo'o
Railroad Company The company was
bonded quite heavily. When the interest,"
came due I found they had not earned
substantially anything with which TO pay
,hA interest. And. OF course. | dropped
everything else to investigate how We be
cam. so situated and what TO do. The
other interest in the property was owned
nv n Arm OF contractors. They held one
less than one-half of the shares. ana
made them substantially give me tnei'
stock on condition that ] should KEEP
good the interest on the ponds
What Arm of contractors was that:
"Sanderson &, Porter.
When asked by Mr. Folk now the Sc
curities of the troleys in the city OF New
Haven we're acquired Mr.. Mellen an
swered:
I'VE issued debentures. two TOT one
That is. 500 Of the stock of the FAIR
Haven & Westville Railroad Company
vas exchanged for 500 OF 3la per cent 3D.
wear debentures Of the New Haven, wnicn
was the equivalent Of paying I per cent
,or ffty years for the control OF the prop
erty"
Picking up a small slip OF paper Mr..
Folk said: Among the papers you nand
M. I find the following: New Haven
January. i902.-Upon presentation OF this
memorandum there will be delivered -
shares OF the capital stock OF the Ne"
York. New Haven e. Hartford Railroad
Comnany. with all dividends accrue
thereon from above date, or this memo
r,pdum will be cashed at the market
value of said stock on the date OF presen'
tation. with such accrued DIVIDENDS ou'
I'm no event shall the stock be valued Al
more than 500 share. What is that
memorandum, MIR. MellenT
Due Bills Produced.
"That is a personal due bill which
gave for New York, Westchester & Bos-
ton shares. 1t was eventually redeemed
by the New Haven in its own shares OF
capital stock You will find In the rec
ords. IL YOU have the New Haven records
i'm YOUR hand. a vote OF the board OF d.
rcctors. BY which some 5000 shares oil
New Haven stock was transferred to me
for the purpose OF acquiring outstanding
minority shares OF the New YORK, west
chester e. Boston Railroad
who were the parties? Tell us about
it,"
II never was able to meet the parties
There was a man sent to deal with me
in the transa action. I never supposed he
was anything more than-what is it YOU
cali TIA fence
There we're certain franchises which
YOU desired to secure and have amended
with reference to the Westchester?'
There were certain franchises which
the Westchester had which were insecure
and needed notifications.
And these shares of stock. amounting
| TO $4,000, were placed in your hands
in escrow TO be delivered when the fran
/ chise should be amended. Is that cor
rect?'
AS recall it, we refused: we were
/ willing TO put up the 5000 shares-th'
New Haven was-in my hands. The other
/ parties apparently had their 1900 shares
ready for delivery. They wished TO make
an immediate exchange. Our people were
unwilling to make the immediate ex
! change"
with whom did YOU deal regarding thu
delivery of this 81 10000 worth of stock
Inspector Thomas ]. Byrnes, of New
I York City. The situation was this: Thi!
stock was in my hands for the purpose o
/ redeeming these due bills. had settled
! with the New Haven Railroad for th'
shares. | am responsible to the holder:
of these due bills for the number o.
shares enumerated on the back"
Where are those due bills now?"
God only knows: they have been out
standing for more than Ave years, and
am really thinking that possibly vii
not have TO pay them"
You paid one this year. however. Tn
der what circumstances did you pay tina
one?"
A man presented it to me and | paic
him slo,i5O in bills"
Did YOU know the man."
No"
What did he look like"
well, / thought he was somebod,
from the East Side by the looks of hi,
nose"
What did he say"
Bares Franchise Deal.
You were TO get this franchise amend
ed In thirteen different particulars
We did. did not always have conve.
nientiy with me either money or checks
In many instances they asked me II