The Birmingham age-herald., 1914-05-22

ducing him to divulge the nature of tn proposed amendments. He declined t reveal this until the third reading hat been passed, and after bitter speeches by Andrew Bonar Law, the opposition leader and others, denouncing the pr
 
 directors of the New Haven have beer like without MT. Morgan?"
 About as tame as a lot of cows with out a bull
 Mr. Mellen said he was opposed tc the New Haven holding and operating steamship lines.
 q always was against the plan. was afraid of disasters on those finder boxes"
 Mir Mellen, after testifying regarding an offer of s20,000,o00 made by Charles W. Morse for the purchase of steam ships owned by the New Haven. said he came to Washington and consult ed President Roosevelt in regard to the matter
 MT. Morse" he said, had acquired practical control of nearly all the steam lines of the Atlantic coast He wanted our holdings and l finally got a def mite offer of s20,O0O.0o0 from him. wanted to sell but I was a great ad- mirer of President Roosevelt and thought a matter of that kind ough to be laid before the President of tn, United States. I saw him and he wa: anxious apparently. that Morse should be checked in his acquisition of contro of steamer lines. He urged me not t, sell.
 Talked With Roosevelt
 q told Mir Roosevelt that as it wa. expected the bill being prepared bA Herbert Knox Smith, commissioner O would contain a claus, preventing railroads from ownins steamships it would be to our advan tage to accept the Morse offer. I tolt him I felt it was doubtful that W, ought to turn down the proposition when by it we could turn our property into cash.
 Herbert Knox Smith and Commis sioners Prouty and Knapp were pres ent, having been called In by Mir. Roose welt. MT. Roosevelt told me, T can onl, promise you, MT. Mellen, for mysel that if you do not sell your lines will promise you so far as l am con cerned, while the law remains as i is. you shall experience no trouble iron me in your ownership of what you nov have"
 When was the bill put in by Attor hey General Bonaparte?"
 CT think in 1907"
 Why was the provision preventing the railroads from owning steamer left out?"
 "I imagine it was because MT. Roose welt kept faith with us.'
 When Mir Mellen of the New Have railroad took the stand today. MT Folk taking up the acquisition of the Rhod Island trolleys, asked MT. Melen:
 What assurance did Senator A1dric give you to be transmitted to the Ne' Haven directors?'
 CT do not remember any," MT. Melle replied
 Refused to Separate
 Mr Melen stated that his impresso Stoelxbridge he made some allusion to re suming negotiations for acquisition of tn Rhode Island trolleys. MT Mellen further said that the Unite Gas and Improvement company refused separate the Connecticut and Rhole Islan trolleys The intimation was that the Ne Haven had to take the properties in bot states in order to get the Rhode Islan trolIeys.
 Has the deficit that resulted from tn purchase of the Rhode Island trolley ever been made up?'' MT. Folk asked.
 NO, but am confident it will be- sal MT. Mellen.
 50 you paid $19,o00,00O or s20, ,O00, 900 fo property worth about sS, GOO, ,000?"
 'I do not accept your valuation of s. GOO, OOO''
 How do you estimate the value in ca SC like that?''
 When I value purchase l consider it prospective value, what it ultimately wi be worth"
 In explaining the purchase of the Rhod JSI Mr "a price paid was in debentures of the Rhod Island Security company, securities guai anteed by the New Haven road.
 ''As this was an intercompany trans action" said EIr. Mellen, "the price wa perfectly immaterial. It simply was tn passing of securities between the Ne' Haven and it's various subsidiaries. It wa the changing of assets from one pocket another.
 Mr. Mellen declared that in the Rhod Island transaction he was assisted by vs rious members of the board of directors.
 Was there influence exerted to induo you to acquire these trolley lines?" aske MT. Folk
 Working Toward Principle
 q never have known responded M Mellen, "a large transportation matter ths was not backed by influence The fact that in the acquisition of these electri lines l was working toward a great prir ciple. Sooner or later. l felt. transpol tation was to be electricity. l am sti confident that my theory was right
 Do you think control of that kind fai to the public?''
 ''The control must be such as was con templated in New England or it mus be in the hands of the government" an swered MT. Mellen with emphasis.
 You regard control by one man as good thing?"
 That is msnomer. No one ma could control it. I had more bosses whe was president of the New Haven a a salary of s6O.00o than when I was clerk at $50 month"
 ''The main force was MT. Morgan, wa it not?"
 "The great force in the world is brain. and MT. Morgan had them,' replied MI Mellen.
 Then the control would have gone t one man?r MT Folk inquired.
 If his brains controlled the situatio he had a right to that control"
 Have you. in the light of later events changed your views%'
 MT. Morgans death changed the sit uation."
 In response to a question regarding tn acquisition of certain Massachusetts trol ley lines, MT, Mellen said:
 Interest Personal
 My interest in the Massachusetts trol leys was personal I bought them mysel ana paid for them with my own money. would have lost money If the stock ha, gone down It went up and I mad money I made a total of $22,5OO.'
 Concerning the control of the Joy Steam ship line by the New Haven, Mr. Mel len said