The Detroit times., 1914-05-07
BILLIARD ADMITS
HEMADEFORTUNE
FROM new HAVEN
Sold Boston 4 Maine Stock To
Holding Company At Profit
of $2,74S,750
INSISTS HE HAD
NO SECRET AGREEMENT
Securities Bought From Rail-
road We're Returned To Sub
sidiary Corporation

WASHINGTON, May High
finance" as related 10 the affairs OF
the New Haven railroad was revealed
today in remarkable statement in
inquiry by John L. Billiard, Of New
Haven. Conn. president OF the cele-
DRAFTED Billiard company, anG former
director OF the New Haven railroad,
Billiard admitted maS.ng proats
running into millions in transactions
in stocks OF the New Haven road and
it's subsidiaries. But he denied that
the railroad OF any Official had any
interest in the Billiard company. lie
said his stock deals, except one and
the Billiard company were strictly
private enterprises. Before he be
came a New Haven director in 1907,
Billiard said he bought 10000 shares
OF Boston Maine stock for sl3,75i,0OO
from the New Haven company, and
sold them back at $3.50 u share net
ting a profit OF SEAS, TOTO the Bos-
ton holding company, organized by
the New Haven as a subsidiary.
Both in the purchase and resale
OF this stock, BILLIARD said the nego-
uatfons betW cen me and the railroad
company were absolutely free fr0Iii
any secret arrangement or under
standing.
He admitted agreeing, however IN
view or his profit, on June 80, 1909,
TO take over from the New England
Navigation Co, New Haven sub.
sldiary $4,000, 900 OF gold notes OF
The New England Investment a Sc
curity Co. another New Haven sub
sidiary controlling trolley lines al
Worcester and Springfield, Mass, IN
Dayment for the Boston and Maine
stock, repurchased by the New Haven
railroad.
Billiard testified that he bought the
great block OF Boston & Maine stock
When the MASSACHUSETTS, supreme
court declared that its ownership by
The New Haven was illegal lie Dor
owed immense sums from New York
banks and rIsked his entire private
ortune, he said. in the deal Among
his loans was one OF SllOOO,OOO from
the National City bank, OF New York.
Il knew the New Haven company
hoped at sometime Billiard testined,
ITO get the law changed so il could
hold the stock At that time TN
1909 il was generally understood
that the railroad company had TO part
with this stock"
Il paid President Mellen St25
hare for the stock about the market
price He telephoncd me that II
would give Sl25 a share he would
help me finance the purchase. This
agreed TO do ! paid part OF the
purchase price with note and the
balance In cash having borrowed
large amount OF money for the pur-
pose from the National City bank.
There was absolutely no under
standing by which ! was To be pro-
tected against fall in value of the
Boston & Maine stock, or by which
was under any obligation to keep the
stock or to sell il again to the .,eW
Haven railroad.
After holding the stock a year, Bill
lard said, the New Haven got through
The massachusetts legislature a bill
10 authorize its holding OF Boston and
Maine stock, incorporating the Boston
Railroad Holding company.
THE New Haven then wished 10
re.acquire the stock" said Billiard.
81 sold ~ back at about the market
price" he declared II received $3.50
a share, showing me a profit OF $25 a
share on my original purchase OF lO9,
900 shares. was not at that time a
director OF the New Haven company
and both in the purchase and resale
the negotiations betN n me and the
railroad company were absolutely
free from any secret arrangement or
understanding"
Later dealings of the Billiard com
pany, the witness insisted, with the
New Haven railroad or its subsid
lsries. were all simple business trans
actions"