The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1914-06-05
BY ASSOCIATED RPESs

/ BY ASSOCIATED RPESS
Washington, June 4-Charles 5.
| MeHeu' recent testimony that he as
president of the New Haven railroad.
allowed himself TO be indicted i'm the
( Grand Trunk case to shield the late J..
. p Morgan, was denied before the in
+ terstate commerce commission today
! by Lewis Ledyard of New York, d
director of the New Haven at the
time.
/ Ledyard took the stand as 4 volun-
tary witness in the commissions in
Vestigation of the New Havcu's tinan-
cial affairs and was not sworn. a
subpoena issued for him recently was
Withdrawn, but he urged that he be
allowed to make statement.
William Skinner, q director. COM
pleted his testimony TO-DAY. He said
/ he could not recall any instance in
which Morgan attempted to dominate
the directorate.
why did the directors make a re-
| port to the stockholders to the effect
that the New Haven held marketable
securities of the Billiard Company
worth 10000. 900, when they We're in
reality o. little value" asked Chief
Counsel Folk OF Mr.. Skinner.
Il took the word Of the accounting
department Of the road"
Then, Sc far as these securities
were concerned, you we're merely
rubber stamp directOr?"
Did not and could not inyeSt igate
all of these details. [ accepted the
of the value of the securities
Did you know of the 'Prayer from
the Hills issued to create public sym
pathy?"
YES"
do you think it was proper to try
to influence public feeling thai way
Il believe railroad or other pUbiiC
corporation has the right to create
public sentiment in its favor"
by deception? Do you think it was
right to circulate literature purp0rt-
ing to come from the people when as
a matter of fact it was sent out by
the railroad
with all the hue and cry against
the railroads, they must create sent-
ment in their favor"
Are they justified I'm using any
methOd?"
mo but they must create the SEN
timent"
You have a representative of the
Pennsylvania railroad and a director
of the New York Central road on
the New Haven board. do you think
that interIocking directorate works IN
the public INTEREST,"" asked Mr. Folk
Il believe the public gets a better
service, by our working together"
In other words. by creating a
transportation monopoly" suggested
Mr. Folk
.By no means, such an arrangement
creates no monopoly 1t works for
betterment Of both the roads and the
public"
Mr.. Skinner was questioned by Will
liam Nelson Cromwell appearing for
several of the directors
Were not these various financial
transactions brought before the board
in general way after details had
been worked out by officials OF the
various departments
These matters were presented in
summary form by Mr.. MeIlen He
would make suggestions and give his
views"
Were these matters presented in
writing and passed around at the
meetings? 90
Some of them were
Were the decisions Of the board
in these matters generally unani-
mous?"
Usually they were. If any seri-
Gus objections were raised to anv
transaction. action was postponed"
What brought about the troubled
conditions Of the New Haven? Was
II not necessity of disintegrating some
of the properties acquired, which. un-
der various laws the New Haven had /
to dispose of after it had brought /
them ,"
That had a good deal to do with
it,"
You were not able to finance the /
New Haven as other large railroad +
systems usually are f1nance-72''
NO, we were not. We We're obliged /
TO finance the system from year to I
year. Difficulties grew out Of state /.
laws and inquiries and public crttl- !
cism"
The purchases Of troIIeys and
other properties, as I understand it."
said Mr.. Cromwell. were made with .
some other view than the material
value at the time the properties were
acquired. Was not the object to make .
permanent the New Haven system? ?''
That is correct"
Did Mr.. Morgan at the directors
meetings show any desire to domi-
nate or dictate?" Mr.. Skinner was
asked.
Not that I recall. He was away
in Europe much Of the time and could
not attend meetings regularly"
After Mr.. SINNERS testimony, MIR.
Ledyard was called. but was not
sworn He said he desired to con
-radict certain statements made by
Mr.. MeIen in his testimony.
ON the Boston and Maine board. he
said, he represented the largest hol-
Iers OF stock. the American Express