The evening world., 1914-05-20
HAD AUTHORITY Tc
MAKE BIG CONTRACTS.

MAKE BIG CONTRACTS.
Mr.. Mellen said that part Of the
minutes which made IL appear that
the New Haven had mace a profit Of
S1,649.220 was incorrect, but that a
clause to the effect that Billiard was
only to get q commission was correct.
Mr.. Mellen further said that he made
many contracts, not only with Mr..
Billiard, but with others. which he
had not submitted 10 the Board Of
Directors.
What authority did you have to
make q contract with Mr.. Billiard in
volving payment by the Kew Haven
OF tremendous pront on a stock
transactions
II had absolute authority and re-
ported my action TO tho Board"
why did the New England Navi-
cation Company loah AR. Billiard
II suppose there were some trans
actions between Mr.. Billiard and the
company"
"How did II happen that Mr.. Bill
ard was allowed to wipe out his OBJ
legations later on a 4 per cent. basis
instead Of 8 per cent. 2"
That was Mr.. BILLIARDS. way to pay
as little interest as he could"
why did you accede to thisf"
He made objections to per cent.
and ] thought there was ground for
them and the board agreed"
Mr.. Mellen then was asked as to
the purchase Of the Worcester.
Nashua and Rochester Railroad by
the New Haven. He said Mr.. Morgan
bought the controlling holdings of the
road from the Mutual Life Insurance
Company Of New York.
| @. Did he consult you beforehand
A. No.
@. What was the price paidf A.
100 or 1866 a share, think.
| Q. What was your first knowledge
Of the Transaction A. Mr.. Morgan
phoned me he had bought the road and
wanted me to take up the matter with
Mr.. futile, president Of the Boston
and Maine. which had leased the road
at $250.000 a year. and which Morgan
had bought for the Boston and Maine
MORGAN GOT IS MORE THAN
THE OTHERS.
Mr.. Mellsn could not recall the
number OF shares that Mr.. Morgan
bought from the Mutual Life. bu,
said II was a majority Of the stock
He did not remember the amount in.
volved.
what compensation did Morgan
get from the Boston and Maine d.
rectors for his part In the acquisi.
ton OF the Worcester"
II do not remember that he wal
given anything at all except possibly
q one-fourth or one-eighth commits.
sion"
Gov. Folk produced a letter from
President futile Of the Boston and
| Aafn To
and referred to the acquisition of tn,
Mutual Lfe's holdings. After hear
ing It read Mr.. Mellen said: 81 thinl
that shows I must have had some tall
with Mr.. Morgan before the tele
phone conversation. but l still do no
Now. Mr.. Mellen. the Mutual Lif
got 1876 for its stock?"
"Yes. the letter to Mr.. Tuttle say
1t held 1850 shares 30 At 1s6.
rs II not true that all other hold
ers Of the Worcester stock only &c
l50 for their shares?"
"Stock when held in big blocks al
ways brings better prices"
At this point recess was taken unit
. o'clock.
Confronted with a letter he ma
written to Tuttle dealing with tn
Morgan purchase, Mellen amende
D his original testimony that Morga
had not discussed It with him.
He must have done So" said Me
- len, "but don't think we discusse
the price. Mr.. Morgan paid $2.744,6
for his control. The whole deal
q stock. debts and the like-cost II
7 b. and M. $7,925 ,691,'
His was the master mind In q
deals OF the New Haven. wasn't It
q demanded Folk.
X HE'ALWAYs BOWED TO WILL
MORGAN.
% ut was the master mind in ever
thing Mr.. Morgan was concerned In
n was the reply. But I considered N
Morgan the best advised hnancier
America and l always bowed to !
will. felt he knew better than
y did"
I'm the light of the New Hav
3 developments do you think Mr.. Mo
10 gan's Judgment was justified?" ask
Folk.
r IT think that II Mr.. Morgan HI
lived a few years longer everythil
he had suggested for the benefit
er the New England lines would ha