The Bridgeport evening farmer., 1914-05-16
Thirteen Changes in West chester Franchise Made
 At His Desire
PEOPLE OF INFLUENCE
 REACHED BY BYRNEs
Names of Minority Stock holders Are Not Yet
 Made Public

Washington. May 1s.-Eyka imitation of papers already submitted to the interstate commerce. commission by
 Charles S. Mellen, former president of
 the New York, New Haven & Hart
 ford Railroad, in the commissions in-
 vestigation of the New Haven's opera
 tions in acquiring it's subsidiaries, has
 disclosed the. demands made by Mr.
 Mei1en before the Westchester deal
 was put through.
 E MT. Mellen testified that he had
 made. demand for 13 changes in the
 Westchester franchise as condition
 of the exchange of $1,200. .0o0-
 8 1000 shares-of New Haven stock for
 24,000 shares of the Westchester stock. These thirteen changes have been grouped into four: an extension of the time of construction of the Westchester; changes in the route: relief from the then existing block ade in condemnation proceedings; and assurance of the validity of the West chester franchise.
 It is understood that the demands were acceded to by the board of es- innate and apportionment and ar rangements completed to the satisfac- ton of MT. MelIen and other officials Of the New Haven
 NamesSof stockholders of the West chester--that is, of the holders of the minority of stock in the road, have not been QlSCAOSed. stock was widely scattered but that he was able to reach it through the late Police Inspector Thomas F. Byrnes.
 He did not say that it was held by l politicians although that question was asked him; but he did admit that it was held by persons of influence who could be reached by Inspector Byrnes. l
 Chief Counsel Folk, of the comnis | sion. and his assistans have not yet l cou1p1eted Ehe anaIysis of the docu- fnentary evidence submitted and scarcely will be able to complete it bel fore next Tuesday Itsis evident that l the examination of Mir. Me1len will | all of next week.
 It is the present purpose of the com | mittee and of MT. Folk to develop ev- cry particle of evidence obtainalb1e,1 quite irrespective of that which may have been developed in previous in quiries.
 Examination of papers and docu- ments now in possession of the corn-si indicate clearly, Chief Coun- seI Folk pointed out, that it became i really a practice of certain financial interests to buy up properties which they had been led to believe the New Haven wanted and then unload them onto the New Haven at from two to four times what they paid for them.
 In view of the commission and of MT. OtEy SulI 5WOAl0 He a S61nSLs these interests by which they could be fore ed te restore money so obtained to the New Haven stockholders.
 Already some of the methods em- ployed in financing the deals have been shown by Mir Mellen but in the opinion of MT. Folk after an exam Fl nation of the docurn entary evidence now in hand, the story yet to be told will be one of amazing financial jugg1ery and manipulation. Tn his judgment the facts developed will show the necessity for the enactment by the Congress fof legislation along these lines:
 To prohibitit officials of railroad from being financially interested in5 any subsidiary of the road with which they are connected. To prohibit one railroad from owning stock in an- other.
 To provide for government supervi- sion of the issuance of all common carrier securities, and,
 To hold common carrier directors liable for m1smanagement of the trust imposed upon. them.
 Chief Counsel Folk said that neith- sr he nor the commission had receiv- ed further communication from the department of Justice concerning the E testimony of MT. Mellen already ad- duced or about to be given. MT. Fso1E says frankly:
 .sThe question of immunity is Of little consequence as compared to the benefits which will grow out of MT. MeIlens teStirnony''