Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1914-06-05

ney and others were surprised when
they learned that the New Haven, by
its six-mile holding in Massachusetts
had become a Massachusetts, corpora
ton and was bound by the laws or
the state. Under the Connecticut char
ter the New Haven could issue deben-
lures, not limited by the amount or
outstanding capital.
After the acquisition of the Massa-
chusetts trolleys the New Haven could
not do this, as 1t was against the law
of Massachusetts,. This law was later
modified to permit a corporation to is
sue mortgage bonds to the extent or
double its cash. The New Haven has
thus been held since 1908, in wise
between the conflicting laws of the two
states"
Mr.. Ledyard said when he was put
on the executive committee of the
board of directors he found that the
committee held no regular meetings.
u asked Mr.. Mellen about this he
said, and he told me that the Con-
necticut directors wanted everything
discussed around the board"
1t was Mr.. Mellen's intention he
said to appoint special committee for
NN~@--~
The meetings of these committees, he
said. were informal. The meetings of
the hoard were largely attended
MeIlen's Figures
Mr.. Mellen presided, said Mr..
Ledyard. and he was the most eX-
traordinary presiding officer L ever
saw. His capacity to retain in his head
facts and figures relating to all the
transactions of the New Haven was
simply remarkable. l never knew any
one else at the meetings to take the
initiative in bringing matters before
the members of the board
Mr.. Ledyard said that unless mat
ter appealed to the board as while
it did not go through.
Much has been said,' continued Mr..
Ledyard, lin the press and elsewhere
as to my relations with Mr.. Morgan
or his firm. For many years 1 was an
intimate friend of Mr. Morgan's but
held no business relations with him.
I never owned share of stock in the
New Haven or any of its subsidiaries
and never owned a security issued by
any of them. On the new board l
represented the American Express Co.
holdings"
Mr.. Ledyard said when he became
a director of the Ontario & Western
Road he bought some Of its stock.
Taking up Billiard Co. matters, Mr..
Ledyard said
while l was in Europe in 1898 the
Boston & Maine stock was sold to Mr..
Billiard, and after my return l asked
Mr.. Mellen if the sale was outright or
a dummy transaction. He told me
the sale was outright.
THE following spring 1 was taken
i'll and again went to Europe. Be-
fore that, in January, the Massachu-
sets Legislature had asked the New
Haven board for certain information
regarding its compliance with the
Massachusetts trolley decision and al
so the Billiard matter. At the meet
inf in January l again asked Mr. Mel
len as to the sale to Mr.. Billiard, and
he told me that it was a bona fde
transaction.
Il asked who Mr.. Billiard was, and
he replied: He is wealthy Connecti-
cut man l asked why the sale was
made to Mr.. Billiard and Mr.. Mellen
replied that it was because Mr.. Bill
lard was "a friend of the New Haven
interests 1 then inquired why this
was not mentioned in the reply to the
Massachusetts Legislature. Mr.. Mel
len left the chair and became excited.
He seemed to think I was showing
lack of confidence to him. Later the
answer to the Massachusetts Legisla-
ture was amended in accordance with
my suggestion"
Mr.. Ledyard said several important
things happened while he was in Eu-
rope that year.
In the first place." he stated, the
suitb rought by the government as a
result Of the acquisition by the New
Haven of the Boston & Maine was dis
continued. This was on June "a, 1909,
and the governments action confirmed
the opinion Of Mr.. Olney and myself
that the acquisition of the Boston &
Maine was not violation of the
Sherman antitrust act. The bill to
authorize the Incorporation of the
Boston Railroad Holding Co. was ap-
proved by the Governor of Massachu-
sets about that time and the Billiard
contract was executed and, on July 8,
was approved by the directors of both
the New Haven and the New England
Navigation Co.
BY the time I returned home Mr..
Billiard had sold back to the Naviga-
ton Co. the Boston & Maine stock
/ won't to a meeting of the executive
committee of the New Haven board
Oct. 2. I was outspoken in expressing
my opinion regarding the Billiard
transaction and the big profit that
had gone to Mr.. Billiard. Mr.. Morgan
was present. The dissatisfaction
shown l believe, resulted in Mr.. Mel
len afterwards saying that the profit
could be cut down but no resolution
was adopted at the committee meet
ing. | have examined the record of
the meeting Of the directors Oct. 8.
1909 and it appears a report was
read then of the meeting of the exec
utive committee on Oct. 2. The reso-
luton incorporated In that record is
III the form with which you are IA
miliar and l am quite sure it was
adopted after the executive commit
tee meeting. The board ratified the
record. l do not understand the sub
sequent record which has been read
til. Ill