New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-07
MORGAN BOOKS
ON N. H. SHIP DEAL
Continued from page |


,,bicb was tn be in bonds and -, iU'-
coo in cash. At the time the steamship
company did not have more than S-'o'-
600 i'm cash in its treasury anu t"e
Navigation company had less
amount. When the deal was COM
r,oted however. the steamers had been
sold. and in addition to the S9,VVo'VVo
in bonds the Navigation company hela
all Of the common and preferred STOCK
of the steamship company. The entire
transaction occupied day only.
Lesson in High Finance
The New England Navigation Com
many borrowed S3,OO0,OO0 on its note
from the New Haven company; IL tneh
paid the New England Steamship Com
many SO Q75. 900 for it's common stock.
With the money thus received the
Steamship company paid off S2,Sio,ooo
of the Sj,1O0,O0O it had agreed 10 pay
in cash for the Navigation company
steamers. The Navigation company,
after receiving this part OF the cash
payment. gave the Steamship company
$1,000. 900 for it's preferred stock, ana
the Steamship company turned back 10
the Navigation company the balance
of the S5.7OO.OOO for the Navigation
company's steamers. The Navigation
company then redeemed its notes -
the New Haven, paying $50 in H.
terest.
All the checks were drawn on me
Farmers Loan and Trust Company OF
New York. The New England Steam
ship Company had paid So,IVnooo III
cash for the Navigation company
steamers, although at the time it did
NOT have more than $250,000 in its
treasury, and the Navigation company
had advanced this cash, although II,
too. had "a less amount in its treasury.
AS result it held the common and
preferred stock of the Steamship COM
pany.
l.. S. Miller, president of the New
York, Westchester & Boston Railroad,
spent a good part Of the day explaining
He said that 1t would have TO do four
and a half times as much business as
it now does to make 1t pay. Referring
to the discrepancy between the eX-
penditure of $S,2j0,000 for the pur-
chase Of the Westchester roads by the
special committee Of the New Haven
and the 1,1JO.OOO which this COM
mittee reported it had spent, he as
serted that there were vouchers on file
at the office of the Millbrook Company
showing where this S29OO,OOO had gone
and that they were open to inspection
by any officer Of the New Haven. He
testified to this, he said, in order to
} show that Mellen could, if he wanted
to, have found out where and how the
entire $11, 10000 had been spent.
John A. CARRIER, counsel for William
Rockefeller said that Mr.. Rockefeller's
throat was in so serious a condition
that his physician feared that fatal re-
suits would follow if he were compelled
to testify. He said Mr.. Rockefeller
was in a highly nervous condition, and
that it was practically impossible for
him to write because he was afflicted
with palsy. Asked by Mr. Folk
whether or not Mr.. Rockefeller did not
attend several directors meetings re-
Gently, Mr.. CARRIER said that they were
formal. and that it was something he
was in the habit of doing and involved
no nervous strain.
Commissioner McChord announced
that any lawyers who represented
clients in the investigation would be
allowed to file briefs. He said that the
commission would decide whether or
not they would take any dispositions,
and that If it should decide to hold
further hearings it would notify all
those interested
Mr.. Folk will go TO New York on
!. Monday. He said that the examiners
! would continue their investigation OF
the books of j. =. Morgan & Co. He
declined to say, however, that his visit
to New York was in that connection.
Commissioner McChord has not given
an opinion officially as to whether he
will allow the statement OF George Mac
Culloch Miller to go upon the record.
Mr.. Miller has advised the commission
that he Is exceedingly eager to tell all
that he knows regarding the Westches-
} ter negotiations. He has written TO
the commission that II they wish to 60
to his home In Morristown, n. j., to
take his deposition he is perfectly will
ing that they should do So
AS MIR. Rockefeller and are" Mr..
Miller wrote. with the exception Of
Mr.. Mellen, the only living members
Of the original committee, and as Mr..
Mellcn has already testified, deem Il
important that n statement from me
respecting my participation In the ac-
lions Of such committee should be be-
fore you. | therefore authorize Mr..
Hoffman Miller to present TO you IN
lmy behalf such q statement. duly veri-