South Bend news-times. (South Bend, Ind.) 1913-1938, 1914-05-19

- plUullntlA plAil4tldnS III -NeW 4 0Ik
You would either pay in cash or
in stock them"
Il preferred to pay in cash. used
to be foolish enough 10 think that
New Haven stock was valuable, and
/ wanted 10 keep IT, SO 1 preferred
10 give cash where it was acceptable.
That is how L became such a large
stockholder I'm New Haven. / made
out the checks by which / paid the
due bills TO myself signed them my
self and endorsed them myself. Some
I l made payable 10 bearer
Dues Bills Were Bunched.
Mellen said the due bills seemed
tC be mostly punched in the hands Of
some particular person. he indicated
that he believed these due bills were
held by some person, perhaps as agent
for a number Of scattered due bill
holders. When the time for the pay
ment OF dividends came around a mes
senger would come around and collect
Inspector Byrnes seemed 10 hold
a great many Of these due bills said
Meilen. Il always paid in cash. The
payment was made in such a way that
there would remain no written rec
ord"
Asked if the New Haven board OF
directors knew Of the proposed
York, Westchester and Boston rail-
road Mr. Mellen said:
"Hew far they knew Of changes TO
the amendments in the franchise /
would be unable TO say. The stock
was put in my hands SO that certain
accomplishments should be brought 10
pass. ] carried IL through TO compile
ton. and rendered my report"
Mellen said he might recall who
presented the due bills il he heard
their names
But you gave these men whose
names you cannot even recall sums
from $4,000 upward.
Il would have been glad 10 turn
over the entire outstanding amount TO
any one of them-in silver dollars II
he requested il" He could not re-
member who the messengers were.
They were of all manner of ap-
pearance-some Of them were over
sixty: some Of them boys 1t made no
difference to me"
One Person Collected.
Mellen added that he had been
under the impression that one per-
son was collecting the dividends on all
the outstanding stock. en- bloc, and
was dividing il pro rata among the
holders OF the stock. He said that
about $1,000 shares af the Westches-
ter stock were turned over to the New
England Navigation company. 1t
no value.
Testifying as 20 the purchase Of the
POrtchester line, Mr.. Mellen said that
al q directors meeting Morgan moved
the appointment Of a committee to
undertake the acquisition and that
Morgan as the mover was placed upon
it Mellen served ex officio as presi-
dent. William Rockefeller and George
Mccullough Miller were the other
members.
Gov. Folk then read the list OF di-
rectOrs present at the meeting which
included Mellen. Rockefeller Miller,
Brush. Miner. Taft and others. Mel
len said the proposal was 10 take over
the Harlem River line which was
competing with the New Haven and
that a. the end OF fourteen months the
committee reported that IL had spent
$11.0o0.000 in accomplishing is pur-
pose.
did you know that such money was
| being spent during this time o"
Yes. I deposited the money in ae-
count No ."
Then followed series Of questions
AMI answers revealing the sharp clash
which came between Mellen and Nor
gan over the manner in which the
money was expended Morgan DOM
mated.
Admits Cowardicc.
Folk then handed MeIlen a COPY or
the finance committees report. Mellen
read some large unitemized items,
saying Il ought TO have known moro
about this and this. 7 was entitled 10
know and [ felt that ] ought 20 know.
But I didn't learn anything. Mr.
Morgan told me nothing
Mellen said there was 10 objection
10 the report Asked why he didn't
object. he said III admit cowardice.
] did not press Mr.. Morgan for in
formation because ] thought j wes
wrong. I'm willing 20 say ] was
coward
Folk then switched 90 an attempt 20
discover the trail of the Tammany
tiger i'm the WestChester deal Mellen
stated that ne knew that "c0stsin
gentlemen on Fourteenth 81" were
| interested ia the deal but did not know
how Tammany got hold of its stock.
II suppose a lot Of things about this
matter" concluded Nellen "but 1
don't know any OF them for certain"
Mr.. Mellen said that ne had at
tempted 20 purge his own record sp
far all dealings regarding the ac-
QUESTION ~ the Portchester and Vest
chester lines were concerned: that he
hadn't writer or received any letter
in connection with this matter that ne
| bad not placed before the finance CONF
mittee
y wasn't suspicious ~ .ny as4o-
ciates. vas suspicious ~ results"