The Bridgeport evening farmer., 1914-06-04
B. & M.
 STOCK SHARE FOR
 SHARE WITH N. H.
Lewis Cass Ledyard, Former Director, Contradicts Statements Made By Me1len To I. C. C.=-Skinner Tells Of Billiard Company Deal And His Losses From New Haven


 Washington, June Lewis Cass Ledyard of New York, former direc- tor of the New Haven railroad, suc- ceeded to William S4xfnner's place on the Interstate Commerce Commissions grill today, contradicting certain staten ents of Charles s. MeIlen, for mer president. He said:
 "In the spring of 1907, I had been a director of the Boston & Maine for some time, but had had no relations with the New Haven. On the Boston & Maine road, represented the larg- est holder of stock. the American Ex- press Company.
 one day if the express company would sell it's stock I asked him why and he told me MT. MelIen wanted it for the New Haven. After consulting with officials of the express company, told MT. Lane we would be willing to sell Tn the course of negotiations with Mir. MelIen, the terms were fixed. MT. MeIlen had offered one share of New Haven for one share of Boston & Maine We asked that the same terms be made with Der stockholders and MT. MelIen agreed
 When the interstate commerce commission continued today it's inves- tigation into the financial transac- tions of the Nevvw Haven railroad and it's subsidiaries William Skinner of Holyoke, Mass, a director of the road, who was a witness yesterday, vzas on hand to resume his testimony.
 That Prayer Froza TIfIIs.''
 why did the directors make a. re- port to the stockholders to the effecr that New Haven held n7arketable se- curitfes ef the Billiard Company worth i, ,f10, ,400,6O0 when they were in real l fty of little value 2" asked Chief Coun- sel Folk, of MT. Skinner.
 We took the word of the account ing departn1ent of the road '' Have you no auditing committee on the board ?'s
 "No. but we employ certified ac- countants.''
 .sDo you not know that the accoun- tants said they had not been able to determine the value of the securi- ties ?"
 T could not investigate all of, these details I accepted the report of the accounting department of the value of the securities
 ssDid you know of The Prayer From the Hills issued to create pulp lie sentiment ?''
 ssYes.s'
 ssDo you think it was proper to try to influence public feeling by circulat- ing literature purporting to come from the people, when, as a matter Of fact, it was sent out by rhe rail- road ?''
 with all the hue and cry against the railroads. they must create senti- ment in their favor"
 Railroads on Board.
 ssYou have a representative of the Pennsylvania. Railroad on the New Haven board and a representative. of the New York Central ?' asked Mir. Folk
 s.Yes. both roads are represented on the New Haven board. The Pennsyl- vania is a very large stockholder."
 tsDo you think that interIocking di- rectorates works in the public inter est?''
 T think so, yes. We get a tremen- douse traffic from the Pennsylvania believe the public gets better service by our working together"
 "In other words, by creating a transportation monopoly ?'' suggested MT. Folk.
 nnent creates no monopoly. It works for the betterment of both the roads and the public
 Mir skinner was questioned by Will liam Nelson Cromwell, appearing for several of the directors.
 What was the average attendance at the directors meeting asked MT. Cromwell.
 About 20, [ think"
 Were not these various financial transaction brought before the board in a general way after details had been work out by officials of the various de- partments ?'
 saThese matters were presented in summary form by Mir. Mellen. He would make suggestions and give his views
 were these matters presented in writing and passed around at the meet ings?'
 Were the decisions of the board in these matters generally unanimous?''
 Usually they were. If any serious objections were raised to any transac- tion, action was postponed
 Could Not Mortgage Road.
 s.what brought about the troubled conditions of the New Haven? Was it not the necessity of disintegrating some of the properties acquired which, under various laws, the New Haven had to dispose of it after it had bought them?''
 sThat had a good deal to do with Were not the conditions also partly due to the lack of ability to properly mortgage the New Haven property2"
 They were"
 In course of hiss interrogation, MT. Cromwell developed that no mortgage lies against the main line of the New Haven.
 You were not able to finance the New Haven as other large railroad systems usually are f1nanced.''
 tsNo, we were not We were obliged to finance the system from year to year. Difficulties grew out Of state