Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1914-05-13

! ings of the directors"
The witness then told of meeting
at which he said Lewis Cass Ledyard
of New York, one of the board, stated
| that the New Haven would give its
stock, share for share, for Boston &
Maine stock.
Mr.. Ledyard stated said Law
renee. that j. Pierpont Morgan and
others had decided there ought to be
a change in the railroad situation. Mr..
| Ledyard said Mr.. Morgan had been
applied to for SAC, 100000 to finance the
New Haven and also had been asked
| for a similar sum for the New York
! Central. Ledyard said Morgan would
not consider the plan to put up $780,
| 100000 unless the roads could put more
traffic over the lines. The general
scheme was to bring about consol-
idation of railroads until there were
only five and similarly with the ex-
| press companies"
Mr.. Ledyard, who was present this
afternoon waiting to testify, arose and
| declared that some of the statements
made by Mr. Lawrence were incorrect
| and he wanted to answer them. He
| was told that he could do so a little
! later.
| Effect of Control
What has been the effect on the
| Boston & Maine of the New Haven
control?" the witness was asked.
THE increase in freight in the five
years following the absorption was
| only 432, 900 tons, while the New Ha-
Ven's tonnage increased eight times
| that amount"
Id ~
| high grade traffic of the road had been
diverted to the New Haven and the
Boston & Albany. From 1901 to 1906,
! Mr.. Lawrence added, the Boston &
| Maine had had a constant increase
in freight and passenger traffic, but
that since that period it had fallen
! off.
Maintenance
HAS the Boston & Maine property
been kept up?"
! Some ways, not in others. The
road beds, think, are not so well kept
up"
Mr.. Lawrence told of going to Montreal
and urging that the Grand Trunk road
be extended to Boston or Providence
Before the New Haven got the Bos-
ton & Maine, had you and your family
received offers from others to purchase
your stock?" asked John H. w. Grim,
! personal attorney for Mr. Mellen. Mr.
Lawrence said such offers had been made
by different parties, some of whom were
willing to pay 210 for the stock.
| Mr. ledyard
When Mr.. Lawrence concluded his tes-
/ ttmony, Mr.. Ledyard again asked per-
mission and was allowed TO make a
statement
For many years 1 was a director of
the Boston & Maine and also director
/ of and counsel for the American Elk
press Co. The express company had
/ holdings IN the Boston & Maine and |
represented it on the Boston & Maine
| board. l knew Mr.. Lawrence's father
/ pleasantly for a number of years.
Il was in my office in New York one
| day when Gardner Lane of Boston came
/ ITO me and asked If the American Ex-
press Co would sell its stock. He said
Mr.. Mellen wanted it. 1 talked about
! price and finally, at a second visit to me,
/ he said he thought the exchange could
be made on shart-for-share basis.
talked with the directors of the express
company, but 1 never saw Mr. Morgan
in this matter at all, nor did 1 say at
the Boston &c Maine meeting that had
THE directors of the express company
said they would be willing to sell.
| went to the Boston & Maine directors
meeting and told Mr.. Lawrence senior
and others about the offer. 1 told then
the express company would not accept
the share-for-share offer unless it was
understood Mr.. Mellen would allow al
| other stockholders the benefit of it. The
| testimony just given as to the scheme
for limiting or consolidating railroad:
and Mr.. Morgans connection with any
thing of the kind is false
Mr.. Lawrence, jumping up. asked:
rs it not true that William K. Van
derbilt had obtained block of 500.
shares of Boston & Maine stock at a
special price on understanding that il
would not go to New York Central Rail
| road?"
II know nothing of that" answered
Mr.. Ledyard.
WAS not that brought up at the meet
| ing in Boston?" Mr. Lawrence then ask
| ed.
II can throw a little light on thai
phase of the matter. When the share
for-share transfer was made, Mr.. Van
derbilt asked me If 1 would let him put
his Boston & Maine stock in my name
l agreed to this and received in exchang,
the New Haven stock, which l latel
| turned over to Mr.. Vanderbilt"
BECKER TRIAL