The Birmingham age-herald., 1914-05-21
Former New Haven Head Continues Story Before I. c c. of Roads Fi-
 nancial Dealings
DIRECTORS AFRAID OPENLY TO OPPOSE
 J. P. MORGAN'S PLANS
Financier Responsible for Big Prices Paid for Acquisitions to the New Haven Is Claim-May Be
 on Stand for Two
 More Days

Washington. May 20.--Dominant con troI by the late J. Picrpont Morgan not only of the officials hut of the prop critics of the New York. New Haven phasized today when former President. Charles s. MeIIcn of the New Haven continued his testimony before the in- terstate commerce commission.
 MT Mellcn admitted frankly that neither he nor directors of the New Haven had the temerity openly 10 oppose Mir. Nor gen's plans. although he said he some times disagreed with him. He declared. financial transactions was so marvellous that anybody we'll might hesitate before running counter to 1t.
 Even in the acquisition by the New Haven of the West Chester property, into which millions of dollars vanished Mir Mellen. who declared he did not approve of the purchase, insisted that had MT. Morgan lived the property might have been far more valuable than it is today. So. too, with the acquisition of the Wor- cester, Nashua and Rochester railroad. in which Mir. Morgan. Mir. Mellen said. wax' responsible for paying Sl5 a share more than the stock really was worth. As in the West Chester transactions. however, Mir. Morgan. according to Mr. Mellen, would brook no interference, carrying out his plans without regard to the opinions of others interested,
 Price Too High l Acquisition by the New Haven ofitrol-| 1 ley lines in Connecticut and Rhode 1sfHno> | occupied much attention at todays pro- l ceedlngs Mr. Mellen conceded that some l of the properties had been purchased at too high price. but added that they were worth more to the New Haven, at the the lines, particularly those in connecti- cut. he said he encountered sharp com petition from other prospective pur- cl.asers, and thereby "the price was boosted "
 Just at the close of the day it devel- oped that former United States Senator Nelson w. Aldrich of Rhode Island pr- nsarily was instrumental in selling the trolley system of that state to the New Haven.
 MT. Mellen maintained that trolley lines acquired by tue New Haven, generally speaking were valuable. and while they had cost large amount, he believed the money had been well invesetd l At the close of the day MT. Mellen per ceptibly tired His weariness seemed to l be purely physical, however. His answers | were prompt and direct, and he apparent 1 ly retained to the fnl his wonderful pow CTS of memory and his comparative grasp | of details about which he was interro-3 | gated.
 | Chief Counsel Folk indicated tonight that
  l for two more days or even longer.
 MT. Mellen took the stand at 1925 o'clock after a conference with his couNsel Commissioners McChord and Daniels were at the commission table.
 "When was a loan of s3o0.ooo made to Maskel of the Boston Herald?' be- gan Mir. Folk.
 ''Two years or more before notes of Haskell were sold to Mr. Billard,' MT. | Mellen replied
 Asked to explain the transaction. he said.
 q had known Mir Haskell some years and laid the case before the finance committee, and they agreed to the loan"
 "Was the fact that he was owner of the Boston Herald an inducement to make the loan?" MT. Folk asked.
 Tt was certainly not bad induce l ment.''
 What was pending in the Massa- chusetts legislature at the time of tho loan to Haskell?'
 There was always something pend ing in the Massachusetts legislature" MT Folk turned to the Boston Rail- l road Holding company bill. which Gov ernor Draper advocated to bring the stock of Boston and Maine under a company controlled by the state of Massachusetts. Mfr. Meilen testified that copies of the bill had been sent him by "Mr. Choate or Mir Byrnes"
 That Is Timothy F. Byrnes, vice president of the New Haven. and pulp l licity man?" asked MT. Folk. 1 "No man can be in the railroad busi- ness nowadays and not get publicity. Sometimes he gets too much
 Did you retain Mir. Choate to draft this bill?'
 "Mr. Choate was our registered leg l