New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-05-03
Witness at the New Haven
Hearing Tells Metro
pOlitan Negotiations.
MELLEN MAY TAKE
STAND NEXT WEEK
New York Brokers QuestiOned<as
TO Stock Observation-Disclosures
Letter Read.

Washington. May AFTER a brief ses-
sion OF inquiry into tho financing OF tho
Billiard company and the numerous imam
clal operations Of the Metropolitan Steam
ship Company. tho Interstate Commerce
Commission to-day adjourned its in
vestisaton Of the New York. New Ha-
ven 4 Hartford Railroad until Wednes-
day. II - expected that John J.. BILLIARD
one Of the moving spirits or the concern
whose dealings with the New Haven
have been the subject OF considerable
questioning, VIII take the stand next
week.
Mr. Mellen IL 10 testify next week, and
is expected. according TO good author
ity. 10 reveal many secrets regarding the
operation and financing Of the New
Haven.
William Butler Tyler and Arthur G.
Cwynne Of jerks. Gwynne & CO.. Ne"
York brokers' were questioned to-day as
to transactions in the stock of the Billiard
company The reorganizatiOns ard
financing Of the various Metropolitan
Steamship Company concerns were the
subject on which Walter 70. Reid, OF Wa
tervlle. Me. was questioned at length.
During the testimony Mr.. Reid stated
that he had negotiations with Mellen after
the Metropolitan Steamship Company. Of
Maine competitor OF New Haven boats.
had failed. looking to the organization OF
a company in Maine. According 10 Reid,
this transaction failed because Charles
W. Morse. who was then In the Tombs,
was selected as head of the new company
pont Morgan objected to Morse being
president and 10 Melen being known as
a director.
When the hearings were opened to-day
before Commissioner Charles c. Nc
Chord efforts were made to trace the
stock Of the Billiard company sold by
Harry V. Whipple. president of the Mer-
chants National Bank of New Haven
and last treasurer of the Billiard COM
pany.
Paid $1,000 for Stock.
William Butler Tyler. of Plainfeld, y.
j., testified that he had purchased the
twenty shares of stock from Whipple for
jerks, Gwynne & Co. New York stock
brokers. He paid Whipple $1,000 for it,
the firm Of Hallgarten & Co., of New
York.
Mr. Reid. the next witness, told OF con-
versations with ex-President Mellen as to
the reorganization of the Metropolitan
Steamship Company.
Were you interested in this company"
he was asked.
81 had friends who were and I was
acting for them"
MIR Reid told Of calling on Mr.. Mellen
in October, 1909, TO find out If Mellen
would continue the negotiations that had
been started some time before. Mr.. Reid
said that Mellen told him he was to have
81 10000 of stock of the reorganized Met
ropolitan, for which he was to pay moth
ing, but that Reid was to withdraw his
three fast freight steamers put on be-
tween New York and Boston to compete
with the Yale and the Harvard.
Mr. Mellen. the witness said. also told
him IT was agreed Mellen should have
three directors and that Reds interests
would designate four.
The three Mellen directors were TO be
Charles A. Moore, of Manning, Maxwell &
The Reid interests were to be looked after
by Charles w. Morse, John A. McKinnon,
Campbell Darlington and Mr.. Reid. The
arrangement was TO continue ten years.
Later, il was testified. Mellen objected TO
Morse being elected. as he was then in
prison, and stated that J. Pierpont Nor
gan had demanded Morse's elimination.
Reid then told Of going TO Augusta, Me-,
where he sold the old Metropolitan at re-
ceiver's sale. The Metropolitan Steam
ship Lines of Maine was then organized.
This was commonly known as Metropol-
itan Steamship Company No. ..
Following the formation of this com
pany. Mr.. Reid testified, Mr.. Mellen said
his own name must be withheld from the
directorate. Reid told of seeking Morse in
the Tombs in New York. and said Morse
objected TO being eliminated. He then
called on Mellen again and the latter, he
stated. seemed to have lost interest in the