New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-05-13
NH. ROW UP TO VIII SON;
P. MORGAN DEFENDED

that amount He said he had made an
investigation and found that the New
Haven had diverted "A large amount Of
high grade raflc on the Boston & Maine
to its own road and that the physi al
condition of the Boston 4 Maine had been
allowed seriously to depreciate.
Mr.. Ledyard did not attempt to cortro-
wort these figures OF Mr.. Lawrence, but he
gave some. inside history of the sale Of
the 10000 or 10000 shares held by the
American Express Company. He said
II was for many years a director of
the Boston & Maine Railroad Company.
Prior to 1907 | had also been a director
OF the American Express Company.
l had also been general counsel for the
express company.
Inc express company many years be-
fore-I have forgotten when-had &C
quired large block OF Boston & Maine
stock. and on the Boston & Maine board
I represented that holding"
Mr. Ledyard said that he remembered
that some time prior to 1907 General Law
renee and he had entered into a mutual
understanding that one was to notify the
other In case either determined to sell his
stock. The harmonious relations in the
board continued uninterrupted. Mr.. Led
yard said, until the time OF the selling OF
the Boston e. Maine stock held by the
American Express Company.
Story Of tho Sale.
THE way that case came about" he
said. was that was sitting in my Office
in New York when Gardner Lane. a brok-
er in Boston. came to sec me. He said ::
Mr.. Ledyard, would the American Ex-
press Company be willing 10 sell its Bos-
ton g. Maine stock?' I said: Mr.. Lane,
do not know should have 10 ask
about II. And they naturally would want
TO know who was buying IT, He said /:
Mr.. Mellen wants 20 buy II for the New
Haven road
Il had some talk with him about his
Idea as to price. He at first thought the
New Haven would take some lease OF the
Boston & Maine, and the Boston & Maine
be converted into some guaranteed stock.
He came more than once--I think twice
and he said that he would find out about
that. Finally no came and said he
thought they could give us New Haven
stock for our Boston & Maine stock.
share for share.
Il saw the directors OF tho express
company. OF which I was counsel. |
never saw Mr.. Morgan In the transaction
In my life. He had no interest In 1t. so
far as / knew; he was not in IT. / never
saw him, / have never heard OF him In
the transaction, and ! never. In the Bos-
ton & Maine board. or I'm the executive
committee, or in the presence OF William
r. Lawrence. or any one else. stated that
| represented him. or that I had seen
him. or that | was representing any in
terest In the matter.
THE American Express Company di-
rectors said that they would be willing 10
sell their Boston & Maine stock. went
back to Boston. and at the next meeting
OF the board suppose It was the next
meeting-at n meeting at least of the
board-or OF the executive committee. !
do not remember which-General Law
renee and | being members OF both. |
told him about Mr.. Lane coming on be-
half of Mr.. Mellen and wanting TO buy
our stock, that We were entertaining the
proposition and proposed to sell It,"
Mr.. Ledyard said he had suggested to
Mr. Lane that the American Express
Company would not be willing to sell its
Boston & Maine stock unless Mr.. Mellen
and the New Haven were willing 10 af-
ford the same opportunity to any other
stakeholder wishing TO dispose of his
stock. He said the peculiar laws OF Mas
sachusetts were really responsible for tho
desire Of the American Express Company
To dispose OF its stock.
The Boston & Maine Railroad had como
TO the end OF its bond issuing limit. and
the only way that it could Increase its
bond issuing capacity was by the issue
Of additional capital stock.
Under the laws Of Massachusetts" he
said, that could be done only with the
consent Of the railroad commission. and
the purposes Of the issue were to be ap-
proved by them, the amount was TO be
authorized by them and the price at which
the stock should he offered TO the stock
holders fixed by them. which the law re-
quired should be not less than the actual
value Of the stock. For that purpose the
railroad commission always took the mar
Eot value Of the stock.
AS Mr.. Lawrence has told you. one OF