Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-05-20
MELLEN REVEALS
MORE OF ROADS
SECRETS ON STAND
Tells Folk About $500, 900
Loan to Haskell, of Bos-
ton Herald.
MORGAN ASSOCIATES WILL
SAY THE WERE JUSTIFIED
Will Tell Commission That
$35,ooo,ooo Expenditure by
Them Was Proper.
Especial to the Evening star.I

sumo his remarkable story of finan-
cial Juggling before the Interstate
Commerce Commission Showing no
signs of fatigue after yesterdays or
deal Mr.. Mellen took the stand with
the prospect of continuing as a wit
ness for several days.
At a conference before the hearing
, today, Counselor Folk and Mellen
went over the purchase of the Rhode
Island trolley system and of the Wor-
cester Nassau and Rochester Rail-
road. In the former, Folk plans to
show that former Senator Nelson W.
Aldrich was interested and that in
the latter the stock was secured from
the Mutual Life Insurance Company.
President Mellen will be on the stand
for the rest Of the week.
Daniels Questions MeIIen.
For the first time since Mellen took
the stand, the New Haven was repre-
sented by counsel today, Edward D.
Robbins having a seat behind Folk.
Interstate Commerce Commissioner
Winthrop NJ Daniels, of New Jersey,
a new appointee, was present also.
He questioned Mellen at length re-
garding notes given by the Boston
Herald and w. E. Haskell to the
New England Navigation Company,
and later turned over to the Billiard
Company. The notes covered a loan
of $300, 600. Folk endeavored to in
dicate a connection between the loan
and the passage by the Massachu
setts Legislature of bill authoriZ-
ing the New Haven to hold the Bos-
ton and Maine.
The loan WIS made a, year or two
before the bill. was brought up In
the Legislature.
"Outs de of these loans made to
! yourself and Billiard can you tell US
of another large sum loaned by the
| New Haven or its subsidiaries? Folk
asked
There We're such loans, but can
not remember to whom"
"Who authorized the Haskell
! loans?"
"The finance committee of the New
England Navigation Company"
THAT was Morgan, Rockefeller,
Miller and yourself. wasn't it?"
II guess so, but the records will
show exactly"
WAS there any connection between
this loan and note for 100000 made
by the United States Trust Com
pany on May %, 1902"
II guess so: the trust company got
the Boston Herald collateral | con-
slider these notes worth their face
value during all the time the Navi-
cation Company held Them
Questioned About Boston Herald.
Had you any connection with the
reorganization of the Boston Herald
Company"
Yes, I was at some of the meet
ings, representing the Billiard Com
pany, and met several lawyers ana
all of the reorganization committee"
Was Lee, Higginson & Co. repre-
sented?"
~ don't know"
Mellen said that Richard Olney
was not there, and that he (Mellenl
was never in the Herald office.
ut was not generally known that
the navigation company New
Haven subs diary, had big interest
in the Boston Herald before the re-
organization, was it?' Folk asked.
mo, 1t was not advertised said
Mellen.
Mellen emphatically denied that the
New Haven had forced the passage
of the holding bill through the Begis-
lature.
Il did not believe the bill was all
the New Haven should get" he said.
ut did not meet the situation, but
Governor Draper wanted it passed,
and he forced it through the Legisla-
ture through his own influence"
Mellen said the bill was passed 10
permit the New Haven to buy back
its control of the Boston and Maine.
He said he had passed upon its mer-
its at the request of Timothy Il.
Byrnes, former vice-president OF the
New Haven.
"He was your legislative and pub
licity agent?" demanded Folk.
Choate, Legislative Agent.
mo. he was not Mr.. Choate was
our legislative agent, and so far as
Byrnes being a publicity agent Is
concerned, let me say railroad man
cannot avoid publicity these days.
Some of us get too much"
Mellen declared that the real
trouble with the New Haven merger
with the Boston and Maine was the
ownership of the trolley lines by the
latter.
THAT caused all the criticism. If
the Boston and Maine had not owned
trolleys there would never have been
any complaint"
Mellen declared that he tried to
enl' ghten public opinion.
MelIen was then asked whether in
the deal with Billiard whereby the
control of the b and M. passed from
the Billiard Company TO the Boston
Railway Holding Company the New
Haven's subsidiary. the New Eng
land Navigation Company did not
actually lose $1,099,4s0. He stated
there was an apparent loss of that
sum but no actual loss. He ex-
plained that he had negotiated the
entire transaction with Billiard and
the latter had made only a reasona-
BILE profit on it.
The Boston and Maine Deal.
When Melen was confronted with
report, indicating that Billiard had
made a profit of exceeding two mil
lion dollars on the deal he declared
the report was wrong. Folk and
Mellen fenced at length. The attor-
ney tried hard to show the Boston
and Maine transaction with Billiard,
both the original sale and subsequent
purchase, was in the routine of the
Crane up" and was never a bona
fde transaction, but Mellen emphati-
calIy denied the allegation.
Roosevelt Advised Acquisition.
That part of Mellen's testimony
yesterday in which he named ex-
.,.s.,ss ~ -s ss.....sa.s