The Birmingham age-herald., 1914-05-20

have availed greatly. He was himself for years the president of the New Haven system, and his father conceived and built the line from New Havcn to New York. It was MT. Bishop who first set the example of consolidat,o1. He work. d out both the financial and the economic problems involved in the proposition that the New York and New Haven Railroad cor,I any and the New Haven, ,ia,ttsrd an! SpringIeld company snou.d merge. It Was Air. E,shop's figuring which cstab- lished +he rate at which ,ne stock of tine consolidated company sou.d be given in feturn for the stock of the New Haven and Hartford company Fms was one Of the first mathe nautical and financial con- pu'ations ever made in the United States for ,he ruTpose of consoli iatiny railr oa lines
 M-. Bishop however, at the time of the dis eussion over the selection of the rew president of the New Haven was well sd- vanecti in years F'ifty-three years peicre this Cir ussion took place, Mir. nisnop was a member of Congress, representing the Bridgeport Conn.,. district. If he cid Warmly adv.se the election of MT. Mei,en as president, +, must have de"arte6 some whar from the habit he established in tie last years of his life. He did not permit himself to undertake much business ac- tivity at that time.
 At las, MT. Morgans wisnes preva l, d. and Ar Weller was elected president Of the New HsNen Railroad company.
 MT. Mellen's Purpose
 In his testimony MT. Mellen states that about the first thing he discovered after he took office was that the directors of the New Haven company had been buy ing for years securities of leased lines and had obtained control of trolley lines and steamship companies. This testi- mony should serve to correct an impress sion which has recently prevailed that it was due to MT. Melen that the out reaching by the New Haven company with intent to secure ownership or con- trol of various lines in New England and to establish authority over trolley lines and the steamboat companies was under taken.
 The New Haven company had begun this policy years earlier. It was the chief feature Of the administration of Charles Peter Clark during the F years Eff his presidency of the New Haven sys- tenn. Therefore. it will be assumed that MT. Mellen was correct in his testimony when he said that his policy was merely continued by him. although he was in perfect accord with 1t. He might have added that his philosophy of the railroad system in New England was based upon the conviction that the best interests of that entire section would be served if the New England railroad companies were unified.
 Ten Sents a Pound
 Mir. Mellens policy. however did not include the purchase of an electric rail- road whose lines ran from the Harlem river to the capital of Westchester coun- ty, New York, 25 miles distant. Consid- cred from the physical point of view, this railroad is model. It is probably most perfectly constructed electric rail- road line in the United States. ulti- mately it may open to development thou sands of acres in Westchester county be practically part of the suburbs.
 Mir Mellen. however testified that the stock of this line was in his opinion not worth over 10 cents a pound when the New Haven company bought it. Yet New Haven stock valed at $1,2O0O00 was placed in MT. Mellen's hands for the pur- pose of exchanging it for "A GOO shares of stock in this electric railroad, worth, according to Mir Mellens testimony about 10 cents a pound.
 Precisely in this statement Is to be found the still unsolved mystery which lies behind this transaction and which represents a large amount of money lost bv the New Haven. MT. Mellen frankly testified that a secret transaction involv- ing a good deal of money was carried on by him on the one hand and the late Inspector Thomas Byrnes of New York on the other, apparently with intent to satisfy certain political interests in New York city.
 That was not the method adopted by Alexander J. Cassatt when he was presi- dent of the Pennsylvania Railroad com pany. Mir Cassatt purposed building in association with the New Haven com pany one of the worlds greatest railroad bridges over Hell Gate. the whir1pool-like estuary which connects Long Island sound with New York harbor. He en- couptered political obstacles in New York city. The proposition was held up by the politicians but when intfmations were made to MT. Cassett that the obstacles would be removed for a good considera- tion he turned his hack upon those who made it. Not until 1egislation was ob- tained from the legislature at Albany wa it possible to overcome these obstacles. The great bridge would have been com pleted by this time but for the antagon- ism of nolitica1 strikers. Undoubtedly if was influences of this kind which Pres ident MeIlen sought to remove when he issued personal due hills in large amounts to unknown persons with intent. success full as the event proved. to remove the obstacles which the politicians had mt I'D in the way of perfectjng the pur- chase by the New Haven of this Vest oL.eto~ ord poetop railway propertv