Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-05-19
Banker Always Had His Way
With New Haven, Says
Former President.
TELLS OF BIG DEALS
MADE THROUGH'TAMMANY
Humiliated by Financier When He
Objected to Report on West
chester Transaction.

ing the vast and complicated financial
operations of the New Haven raiiroao
and its various subsidiaries.
Chief Counsel Folk. for the commission
directed his inquiries today chiefly 10 oe-
yeloping the dominant part taken III the
transactions by prominent figures on tne
hoard of directors of the New Haven rail-
road and more particularly the late }.
piernont Morgan and William Rockefe-
Ter.
Mr. aJellen responded readily to this
line of inquiry and told in detail OF
his relations with Mr.. Morgan, !nciuu,
ing some differences which ne salo hau
occurred. Mr.. Mellen also went tulis
into the acquisition of the New York
Westchester and Boston road by the
New Haven.
Operated Through Tammany.
This brought out further references
to the part taken by the late PONCE
Inspector Thomas F. Byrnes OF Ne"
York, who, Mr.. Mellen testified, operateo
through the people ON 14th street
where. you know. Tammany Hall Is
located
Mr.. Mellen, when questioned about dif-
ferences with Mr.. Morgan regarding the
Westchester deal. detailed conversation
with the late financier which he said had
greatly "humiliated" him. AT nrs1 ne
hesitated to relate the conversation oe-
cause Mr.. Morgan was dead. bur "hen
pressed for an answer he said that MI.
MorRan had asked him if he thought he
knew more about how d report on the
Westchester deal ought TO nave oeeii
drawn than he, Mr.. Morgan. did be ao-
mitted that he stood a great deal IN awe
of Mr. Morgan and was. perhaps, a 'Httie
afraid Of him.
Mr. Mellen answered the rapid fire OF
questions with readiness and seeming
composure and frequently evoked laugh
ter by some sally The committee room
was crowded with spectators, lncludlns
many ladies, and the hearing was doi-
lowed with intense interest. Mr.. Mellen
was still under examination wnen the
noon recess was taken
Attracts Large Crowd.
A large crowd besieged the committee
hearing today, eager to get a glimpse OF
Mr.. Mellen and hear the continuance OF
his story. The clash between Attorney
General McReynolds and the commission
over the taking Of the Mellen testimony,
and the seeming expectation that this
would be brought into the nearing,
heightened interest in the proceedings
Among the 800 spectators was sonsid,
erable sprinkling of women. Several
women have been regular attendants at
the hearings throughout the proceedings.
Mr.. Mellen was called to the stand
about 1890 o'clock. In response TO IN
o,iries of Mr. Folk, Mr. Mellen told how
he had become president of the Northern
Pacific
How long were you president OF
the Northern Pacific raiiroad was the
Solicitor Folk.
"Six years.
How did you become president"
offered Place by Morgan.
"I was asked by j. P. Morgan to be-
come president" said Mr.. Mellen.
Mr.. Mellen then testified that Mr..
Morgan called him on the telephone
and rendered the place to him. About
two or three weeks later. Mr.. Mellen
said. he became president. He did not
know when he took the office. he said.
what his salary would be. He added
that he knew it would be all right.
While you were president OF the
Northern Pacific was the matter Of the
New Haven presidency taken up?" Mr..
Folk asked.
Yes Mr.. Morgan told me he would
LAS president of the New Haven: what
were your relations with Morgan?
That is difficult to answer.
What would you say as u the re-
iations?
Il was proud of his confidence and
proud to be called his man. thought
great deal of Mr.. Morgan:
Did YOU carry out his policies?
i do not know. that he had any
particular policies.
what was the relative importance OF
the directors as related to Morgan?"
Morgan Had His Way.
That is giving an opinion. We re-
experience and capacity. I recall no
case in which he did not have his way"
How many directors shaped the road
financial policy?'
There was committee of three or
four. Morgan. Rockefeller. Brooker
and, think, at one time, Ledyard. Nor
gan and Rockefeller were the only
ones who remained on the committee
all the time l was president"
Mr.. Folk presented telegram from
Jacob II. Schiff to Mr.. Mellen, saying
that Kuhn, Loeb & Co. of New York
would be glad to negotiate $4,000. 900
of bonds to be issued by the Boston
and Maine.
Did you give Mr.. SchiT opportunity
10 bid on those bonds?" asked Mr.
Folk.
Il think not
Why not?'
Il think it was considered that the
bonds were satisfactorily placed else
where. OF course l had not authority
personally TO place bonds. ! That was
mittee."
What would have happened had you
turned over these bonds to Kuhn,
Loeb & Coz Mr.. Folk asked.
II should have felt that l properly
might have been dismissed was Mr..
Mellen's emphatic reply.
Bankers Took Chances.
t,oncerning a later bond transaction,
OIr. Mellen said:
kuhn. Loeb & Co. bought large
issue of our bonds-4 per cents-on a
tive-per-cent basis. i don't know
whether they made money on that
transaction or not. i hope they did as
1ney were taking some chances
vas that arrangement with Kuhn
Loeb & Co. made with the consent of
the board of directors?" asked Mr.. Folk
--oh. yes said Mr.. Mellen. Mr..
Morgan and the entire board concurred
in the transaction.
who was the real power in the
ooard?"
All directors had the same authori-
lCoutipued on Second PaKe).-