Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-05-20
BIG PROFIT SHOWN
IN RAILWAY DEAL
Particulars Given by C. S. Mel
len, Former President of
New Haven.
SALE OF BLOCK OF STOCK
AND COMMISSION PAID
Relations of New York, New Haven
and Hartford Railroad and
the Billiard Company.

Details concerning the relations Of
the New York. New Haven and Hart
ford railroad and the Billiard Company.
through which the latter. or John L.
Billiard. made a profit of $4,000. 900.
were given to the interstate commerce
commission today by Charles s. Mol
len, former President of the New
Haven. .44aEiRi
Today's proceedings. while interest
ing. were lacking In tho spectacular
features of those of yesterday. Stress
was laid upon the relations of the New
Haven and the Billiard Company Mr..
Mellen maintained that all the records
Of those transactions were In the hands
Of the commission and spoke for them
selves
Mr.. MeIlen declared that Billiard was "a
strong and honorable man.-as honorable
a man as ever knew; but he related
incidents of his shrewd transactions with
the New Haven with evident gusto.
Toward the close of the morning session
and Rochester railroad by the Boston and
Maine was discussed. 1t developed that
1t was brought about by the late ]. Pier
pont Morgan. Mr.: Mellen testifytng that
Mr.. Morgan handled the details Of that
purchase. The road cost the Boston and
Maine $2925691 as an entirety. Mr..
Mellen. while he considered the property
valuable. frankly said he had not ap-
proved OF the purchase Of the property.
Interest Is Unabated.
Interest in the remarkable story being
related to the interstate commerce COM
mission by Mr.. Mellen showed no abate-
ment when Mr.. Mellen resumed his
| testimony. Before the hour Of begin
Mt <lA
was well filled with spectators, who
waited interestedly the coming Of the
principals in the case.
Mr.. Mellen arrived eahly, accompanied
by his counsel. J. w. H. Grim. He
seated himself at the left Of the stand
and chatted pleasantly with several per-
sons who greeted him. He showed no
signs Of fatigue from his prolonged eff
fort of yesterday.
took the stand. after a few minutes OF
conference with his counsel. He was not
quite as pale as on yesterday. Commits
sioners McChord and Daniels were at
the commissioners table.
Loan of $3oo,O00 Explained.
Testimony regarding q loan of $500,
to Col. Haskell of the Boston Herald at
a time when there were matters before
the Massachusetts, legislature in which
the New Haven people were interested
was given this morning by Mr. Mellen.
He admitted that this loan had some
relation to the note given by the
United States Trust Company for the
same amount, and said he believed the
. .S company held the collateral for
the loan, which consisted of securities
OF the Boston Herald, which at that
time were worth their face value, but
are not now, in his opinion
ne admitted that he had attended
REORGANIZATION meetings of the Boston
Herald, but had taken no part In the
a1scuslon and that these meetings were
held in clubhouse in Boston and not
at the Boston Herald Offices.
Gov. Folk read the minutes Of a meet.
ing OF the directors Of the New Haven,
held October 8. 1909, at which a renort
OF the contract with John s. Billiard re-
sarding the transaction in 1O9,9 shares
OF boston and Maine. was ordered APP
proved. Mr.. Billiard, in previous testf-
mony, was said to have made 50, 74S 700
out of the transaction
Mr. Meilen said that part of the min
utes which made it appear that the New
was incorrect. but that a clause to The
eject that Billiard was only to get q
commission was correct
Mr.. Mellen further said that he made
many contracts, not only with Mr.. BIZ
lard. but with others. which he had not
submitted to the board of directors.
What authority did you have to
make contract with Mr.. Billiard in
voiving payment by the New Haven Of
tremendous profit on a stock trans
actton?'' asked Mr.. Folk
I had absolute authority and I re-
ported my action to the board"
Says Report Is Erroneous.
I am quite certain the report which
we are discussing is erroneous. It con-
tains great fallacy. because it suggests
the getting of an assignment from Mr..
Billiard Of profits already in the hands Of
the New Haven. That Is ridiculous. The
report Is in error-an error made perhaps
by the secretary"
The minutes are wrong, then?' de-
manded Mr.. Folk.
Il don't think I have stated anything
more strongly than tnat the report Is
wrong
Mr.. Folk read the contract between the
New England Navigation Company and
John L. Billiard, by which Billiard agreed
to sell to the Navigation Company the
10o, 14S shares of Boston and Maine stock.
This contract was accepted, the shares
to be passed to the Boston RaiIroad