The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-05-21
New Haven Director Bought
a Railroad Without
Authorization.
S19,000.O00 TROLLEYS
LOST 100000 YEARLY
Ex-Prcsidcnt Declares Senator
Aldrich Was Prominent
i'm Losing Venture.

WASHINGTON. May 2o.-Charles S.
Mellen. cx-presldent Of the New Haven.
added another chapter to-day to his
account of the financing of the New
Haven railroad. He told of pur-
chase of control OF the Worcester.
Nashua and Rhode Island Railroad
for the Boston and Maine without. so
Ear as Mr.. Mellen knew, any author-
cation from the Boston and Names
board of directors or from the officers
Of that road.
The first Mr.. Mellen knew Of the
purchase or the price paid was when
Mr.. Morgan called him on the tele-
phone and asked him to notify Presi-
dent futile OF the Boston and Maine.
81 think Mr.. Morgans judgment"
said Mr.. Mellen. would have been JUS
titled in all matters connected with the
New England lines had he lived.
never knew him to make a single dol
lar in any transaction that l have been
cosni2ant Of"
Mr.. Mellen in the course OF the day
testimony told of the acquisition by
the New Haven Of the Rhode Island
;rolleys at a cost Of between $4,000
600 and $4,000, 900. These trolleys are
now losing the New Haven between
100000 and 100000 a year and Mr..
Mellen acknowledged that the railroad
had paid twice their value for them.
Mr.. Mellen declared that ex-senator
Nelson w. Aldrich had been active in
bringing about this transaction.
Denies watering stock.
Solicitor Folk made it clear that he
believed the New Haven road had put
Sc, 900, 900 Of water in its stock through
the Consolidated Railway Company
merger and that this was used to buy
control OF the Boston and Maine.
Mr.. Mellen denied Mr.. Folks sus-
picon of water.
As the result OF to-day's testimony
light Is beginning to break on the
transaction In Boston and Maine stock
by which John l.. Billiard of New Haven
made s2.74s,O00.
The evidence seems to indicate thai
the New Havens holding Of Boston
and Maine was sold to Billiard in order
to evade a Massachusetts law and was
bought back as soon as this legal OBJ
stacle was removed.
Billiard refused to regard the trans
action as a mere accommodation anC
kept the profit, although the minutes
OF the New Haven board Of director
showed that strenuous efforts wer,
made to get him to give 1t up. Com
missioner McChord charged on tn
strength OF to-days testimony that tn
minutes had been falsitied for this pur
pose and Mr.. Mellen himself acknowl
edged that some OF them had been en-
tered for the purpose OF giving him
club.
one entry. was passed three month
after Billiard got away with the stun.
us he trying to keep it," asked So
licitor Folk.
Trying to keep it?" interrupted Bill
lard's lawyer. He has got 1t and h
is going to keep it."
Go Into II. a VI. Deal.
Solicitor Folk began the days hearin
with further questions In regard to tn
sale of lO9,g4s shares OF Boston and Main
stock at $l25 by the New Englan
Navigation Company. New Haven sui
sidiary, to John l.. Billiard and the RI
purchasing of this identical block FEY
months later at $3.50. showing a loss c
s2.749,OOO for the New Haven.
Yesterday Mr.. Mellen said that certai
minutes Of the New Haven board wer
false and inaccurate. One of these col
los presented by solicitor Folk showed
nominal profit OF sl,64s.2O0 to the Ne
Haven company in connection with tn
so-called Billiard transaction in Boston an
Maine stock.
Mr.. Folk read these excerpts to NJ
, Mellen to-day. This In the one from n
minutes Of the directors meeting OF ii
Nav haven of October {, 1903. which NJ
Nell.n characterized as false or inaccl
. rate:
. The President reported that under
4 the contract for the purchase and
sa,s OF this loe, 94S shares OF common
stock of the Boston and Maine Rail-
road, owned by Mr.. John l.. Billiard