The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1914-05-14
Former President Mellen of
Railway System Tells Of
Financial Manipu-
lations.
CRIMINAL OPERATIONS
Big Show Room of Hotel Used
as Stage Setting for
the Financial
Story.
[By John &. Nevin, United Press Stan
Correspondent1

4
WASHINGTON. May 1.-THE lid"
was blown off the New Haven railway
systems cellar of secrets today. The
foundation was laid for a complete
iexposure Of alleged criminal financial
manipulations that was expected to
involve regulations of men dead and
living, who have dominated the
financial world for the last twenty
years.
Charles S. Mellen, president of the
New Haven system for ten years, was
the instrument. He was called by The
interstate commerce commission to
unravel the tangled skein Of New
Haven stock manipulation. He took
the witness stand over the dirac. pro-
| test Of the attorney general Of the
United States who declared that his
testimony carried immunity from Grim
inal prosecution.
| On the other hand the Interstate
commerce commission and its chief
counsel, Joseph W. Folk, contended.
even though this were go, that the end
justified The means Tho commission
lnna .tka United States senate vents
all OF the facts. They want to frame
new laws which will prevent criminal
finance methods In the future. Mellen
was believed to be the one man who
knew all that went on behind the
closed doors Of the New Haven Offices
| in New York, Boston and New Haven.
He had participated in all meetings
OF the directors at which complete
railroad systems were utfli5<1 as
pawns In battle OF financial giants.
The Interstate commerce commits
sion through Counsel Folk insisted
that with Mellen's story as base,
court proceedings could be instituted
to force restitution to innocent stock
holders, many Of them widows and
orphans. Today's hearing was delayed
while waiting service OF new sub
poena on Mellen. His lawyer had
advised him not to appear under the
terms of the original summons. So
an entire new document, calling for
the production Of all Of his records,
was prepared and served.
A big "show" room at a hotel was
The scene of today's hearing. The
yellow room, with its red hangings,
proved a picturesque stage for the
setting Of the drama. The audience
was small. The curious were conspfc-
uous by their absence. A trio Of eld-
erly women, New Haven stockholders,
had seats at one side of the room.
A few smart appearing business men
lounged abou. in seats at the rear Of
the room.
Commissioner McChord and Attor-
ney Folk arrived at 10:3O. Behind
them came Mellen and his personal
counsel John w. H. Grim. The for
mer head of thu New Haven did not
show any perturbation. He chatted
with Folk for several minutes before
entering the audience room. In the
meantime clerks carried in number
Of cases containing books and docu-
ments which Mellen was to identify
and which were relied on to substan-
tiate the details of his story.
Mellen is 63 years old. He is gray
and BALD and his skin is like parch-
ment. A closely cropped gray mus
tache emphacised a firm, nearly hard,
mouth. Today he wore a dark bust-
ness suit, set off by a wing collar
and dark red tie.
After he had given his name, resi-
dence and age, Folk asked him:
What is your occupation?"
"At present am helping the inter
state commerce commission the wit
ess responded grinly. This brought
smile in which McChcrd responded. |
The witness said he brought all New
Haven papers he coulr f1nd, with him, /
but he had others at New Haven and |
Stamford which he would produce, !
Witness said he was born in Lowell |
Mass, educated In Concord, began |
in 1859. He recited var- |
Gus positions held since he started as
g railway clerk at SIS a month, up /
until he retired from the presidency
OF the New Haven. Mellen seemed /
eager to testify. He tilted far for
ward. both arms on the table and in |
shriu penetrating voice, narrated