New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-05-09
Treasury Official Thinks
N. H. R. R. Borrowed
100000 Illegally.
MELLEN, ROCKEFELLER
AND BAKER SUMMONED
Criminal Prosecutions May Be
ReSult-PulIman Contract
Under Fire.
From The Tribune Bureau ]

McChord yesterday. the Treasury De-
partment has begun an investigation of
the loan OF 1,OO0.O00 made by the
National City Bank to the New Haven
on Boston g. Maine stock. 1t wants to
know whether the bank violated the
national bank law.
This became known to-day when
John Shelton Williams, Controller OF
the Currency. asked the Interstate
Commerce Commission for a copy Of
Mr.. Billiards. testimony and also for
the check for S11 ,1O1. 1873 SS with which
the New Haven company paid the loan.
1t was declared at the Treasury De-
partment that the largest loan the Ma
tional City Bank could made to one
person, according TO its capital. was
S5,OOO,OOO.
The Department Of Justice has asked
for copies Of all Of the testimony IN the
New Haven investigation to determin ,
whether there should be criminal pros
ecution.
the belief among interstate commerce
officials to-day that John L. Billiard
had double crossed" the New Haven
Railroad in its purchase and sale of
the Boston & Maine stock. formed an
other interesting chapter in the in
vestigation of the New Haven. Ac-
cording TO the records the S11, 100000
loan was made by the National City
Bank on June 80, 1905. and matured
on April 10, 1910. 1t was paid on Oc-
tober 5, 1909, however. The records
show that the bank collected a COM
mission of $4,000. The loan vas paid
by a check for 81. 101. .13S SS on the
Farmers Loan and Trust Company,
signed by II. NJ. Kochsperger, one Of
the vice presidents, and by A. S. May,
treasurer Of the New Haven company.
This check has been produced.
Summons for Rockefeller.
Former Governor Folk, counsel for
the commerce commission, has sent out
subppnas to William Rockefeller,
Lewis Cass Ledyard, George F. Baker
and Mr.. Miner, four directors OF the
on October s. 1909, the minutes Of
which showed that the New Haven
company had understood that 1t was
TO take over all of the profits realized
by Mr. Billiard, less a reasonable COM
pensation for services and risks Mr..
Folk has also subppnaed Charles S.
Mellen, former president of the New
Haven Railroad, to appear at the in
vestigation next week.
Mr.. Billiard, in his testimony yester-
day, said that he had made $2,74s,000.
He said he had kept this money be-
cause he believed that he was justly
entitled to it. Mr.. Mellen, It was said
here, testified at previous investiga-
ton that he did not believe Mr.. Billiard
had made any profit out Of his dealings
in Boston G. Maine stock.
The extract from the minutes Of the
meeting Of the New Haven directors
on October S. 1909, is as follows;
Meeting of the board Of directors OF
the New York, New Haven & Hartford
Railroad. October s, 1909. Present:
Messrs Mellen, Rockefeller, Morgan,
Miller. Brush, Warner, Miner, Skinner,
Barney. Taft, Elton. Hemingway, Nc
Crea, Robertson, McHarg, Ledyard'
Pratt and Lawrence. 1t was voted that
IN. nlan explained at this meeting for
carving out the contract Of June 80,
,aoo regarding the 1o9,94S shares OF
Roston & Maine common stock and Tor
acquiring securities Of the Boston Rail-
road Holding Company to be issued for
so,d stock in the rate Of SIS stock and
s,25 per cent bonds Of the holding
comDany for each share OF Boston &
Maine Railroad stock is approved pro-
,;d.d that all the shares OF the Billiard
c,nn,nv and all it's profits, actually
or nominal, realized by Mr.. Billiard
,.., . reasonable compensation for his
..,vics. and risks, and tho amount OF
ii. actual expenses in connection with
.h. purchase and sale OF Boston d
M,;r. stock, be first vested in the New
vo,k. New Haven & Hartford Railroad
Company, and subject to the di'Pos''
a.. ~ ia board of,directors.'
MelIen to Testify.
Mr. Mellen will take the stand in the
Nsw Haven investigation on TUESDAY.
,r,ory the things he will be called
,non 10 explain is a contract made
,,i,h the Pullman Company on Janu-
orv I 1913. whereby the equipment
ana business Of the sleeping car and
norlor car business of the New Haven
railroad was turned over TO that conf
pany for 100000 year.
This was testified to this morning ty
Arnold c. Hanson. an examiner for The
r,,ars,ate Commerce Commission, who
said that in 1911 the sleeping and par
,or car equipment Of the New Haven
Railroad represented An investment of
81 299. 900 and that the net revenue de-
r,v.d from II was 1901 100, or q per
cent.
In 1912. according to Mr. Hansen
the investment in sleeping and parlor
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