The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1914-05-19
Former President of New
Haven Says Financier
Dominated Boards Action
Without Exception.
Witness Tells Of Issuing Due
Bills Amounting to $780,
OO0, Paid to Persons I'm
known to Him.
TBY LEASED WlREl

York, New Haven and Hartford rail
road were revealed today by Charles
s. Mellen when he took tn stand in
Investigation. Mr.. Mellen formerly
was president of the New Haven. He
was the first witness called today.
How long were you president of
the Northern Pacific?" was the first
question asked by Joseph w. Polk.
chief counsel for the commission.
six years." answered Mr.. Mellen.
state how you came to be presi-
dent Of the New Haven" added Mr..
Folk
Mr. Morgan told me he was going
to make me the head of the New Ha-
ven, and I assented. That was all"
Were you Morgan's man while at
the head Of the New Haven?"
The newspapers called me his Of
flee boy"
What dominated the board of d.
rectors of the New Haven"
Vote With Morgan.
They voted pretty much as Mr..
Morgan did. We all considered that
MIR. Morgan was man Of exceptional
experience and capacity. We looked
up to him and respected him. There
were other strong men on the board
besides Mr.. Morgan, but I can recall
no case in which he did not have his
way"
How were the affairs of the New
Haven handled?"
principally through finance COM
mittee consisting of Morgan. William
Rockefeller, Mr.. Booker and Mr..
Ledger.
Folk then switched to the Westches-
ter deal and went briefly over the tes-
timony adduced at Mellen's hearing
last week
How many due bills did you issue?"
ITO the extent of from $215.0OO to
$22O,OOO, as near as | can remember"
Yes, but how many due bills?"
Two dozen, perhaps"
"NOw, after the franchise of the
accordance with your desires, these
due bills were presented for payment
by persons unknown to you, were they
nOt?"
Yes, except that know from whom
most of them came. | knew for in
stance that a large number came from
or through Mr. Byrnes. The due bills
were not all. There were also mat
ter of stock transfers. | had given due
for the giving Of six thousand shares
of New Haven stock for $4,000 shares
of Westminster.
You would either pay in cash or in
stock. them"
Il preferred to pay in cash. I used
to ne foolish eniugh to think that New
Haven stock was valuable, and l want
ed to keep it. So I preferred to give
cash where it was acceptable. That is
how became such large stakeholder
In New Haven. | made out the checks
by which paid the due bills to myself,
signed them myself and endorsed them
myself. Some l made payable to the
bears"
Mellen said he nigh recall who pre-
scented the due bills if he heard their
names.
But you gave these men, whose
names you can not even recall, sums
from $4,000 upward?"
Il would have been glad to turn
over the entire outstanding amount to
any one Of them-in silver dollars, if
they had requested it,
He could not remember who the
messengers were. They were of all
manner of appearance-some Of them
were over sixty, some Of them were
boys. 1t made no difference to me-"
exptdIfS OedIS.
Mellen added he had been under
the impression that one person was
collecting the dividends on all the out
standing stock, en- bloc, and was divid-
ing it prorata among the holders of
the stock. He said that about $4,000
shares of the Westminster stock were
turend over to the New England Navi-
cation company. 1t had no value.
Here is a check which was issued
by the New Haven railroad for 81 ,O0O,-
900. This check was made on the
Second National bank of New Haven.
1t was then taken to the First National
Bank of New Haven where another
check was given for it. This check, in
turn, was given to the Shawmut bank
of Boston, and was taken up by the
New England Navigation company
Can you tell us about this?" asked Mr.
Folk
THAT simply figures in some of the
stock transactions. l would collect
Westminster stock and deliver New
Haven stock in return. l would take
the Westminster stock to New New
Haven. Frequently l telephoned that
I was coming with the stock, while on
my way to Boston A clerk would
meet me at the station, relieve me OF
the stock and give me credit for it
on the back of the note. In this way
] finally disposed of the entire eight
thousand shares of Westminster. In
dues course of time the not which went
to cover this Westminster stock was
liquidated with the exception of $50,
900 or $4,000 for which l gave a new
note"
Testifying as to the purchase of the
Portchester line, Mr.. Mellen said that
at directors meeting Morgan moved
the appointment Of a committee tc
undertake the acquisition and that
Morgan as the mover was placed upon
it. Mellen served ex-officion as presi
dent William Rockefeller and George
Mccullough Miller were the other
members.
Governor Folk then read the list OF
directors present at the meeting which
included Mellen. Rockefeller, Miller
Brush Miner, Taft and others. Mel
len said the proposal to take over the
Harlem River line, which was com
peting with the New Haven, and that
at the end Of fourteen months the
committee reported that it had spent