The Washington times., 1914-05-20

over the notes without exactins adv ance
interest"
Folk went back 10 the minutes of the
New Haven directors meetings dealing
ins 10 get MelIen TO admit thev we're
false. But Mellen maintained his origi-
mai contention. He held that tho min
utes which set forth that Billiard was
TO receive only a rea sonsble comrcnsl J.
ton was adopted. not to deIude stock
holders but to ''frnish MIN a method
OF persuading Billiard to reduce profits
already paid to him.
Commissioner McChord went TO Folk :
rescue. ana tried 10 get the admission
from Mellen but he also failed. 1t was
contest OF wits. in which Mellen had
slI the better Of il
Mellen declared that as far as any
losses or profits indicated py the opera
tons OF the holding company were con-
Cerned 1t made no difference whatever.
Inc holdlng company at that time
was the sole property of the New
Haven" he said. It's transactions
with the New Haven were simply a
bookkeeping proposition. nothing else"
Paid $I54 a Share.
Mellen was asked why certain stock
OF the Boston and Maine was bought
from Billiard at Sl5i per share while the
stock he transferred to the New Eng
land Navigation Company was sold the
same day to the holding company at
$40.
THAT is easy" said Mellen. THE
stock at the high figure was bought IN
the open market by Billiard at the New
Haven's request. He was safeguarded
from loss, that was all. And anyhow
the figure he received and that the
navigation company received was fixed
by the railfo.d commission of Massa-
chusetts."
al
the New Haven Of the Worcester.
Nashua and Rochester road. Mellen
said IL was bought originally by J. r
Morgan and sold by Morgan to the New
Haven. Morgan bought tfG stock from
the Mutual Life Insurance Company of
New York. Mellen said He bought it
at $50 or $16S a share. Mellen not being
certain of the price.
The first l heard of the Coal was
when Mr., Morgan called me on the
Mellen said. He told me that he had
purchased il for the Boston and Maine
and asked me to take up with President
Tuttle. of the Boston and Maine the
merger of the road. 1t had been leased
to the Boston and Maine at $3.50 600 a
year and the lease had ABOUT twenty
five years to run when Morgan took
IL over. 1t was a good purchase. but l
thought the figure paid the Mutual Life
for its shares was trifie steep. 4
the stock because of legislation - New
York
Morgan Acted Alone.
Mellcn insisted that the Rustor and
Maine directors had never considered
buying the road. and tnat Morgan had
acted upon his own responsibility. tie
said he asked Morgan why he bought
"a so high a price. End Morson told
rim that was the best figure he could
l,Iake.
But we got the balance OF the sharcs,
the minority interest" said Mel!en.
The minority was bought through +.
s. Mcseley & Co., oy Boston,
Mellcn said the Navigation Company
put up all tic mo.ey for the purchase.
The stock was distributed to Me;lcn.
Billiard 10 held until the merger could
be arranged. This was necessary 10
preserve these stocks voting power
We were dummies for the Na,iga-
tion Company. ana it was .!ummy for
the Boston and Maine Mellen cX-
planned.
Me,lcn said he believed the money
used for this purpose could haze Decn
Used to much better ADVANTAGE by the
Boston and Maine. The Interest. te
said, was more thnn the annual rental
the Boston and Maine vas paying un-
der its ffty-yeaT lease.
Confronted with n letter ho lad writ
ten TO Tuttie dealing With thc Morgan
purchase Meller amended his original
testimony that Mellen had not discuss
ed IL with Lin.
''Hc must have done So" sad MeiIen.
but i don't think We discussed the
price. Mr.. MORGAN paid s2,7fI. .J19 for his
control. The whole deal stock. debts.
and the like cost the Boston end Maine
81. .a25. Gsl.12.
Mellen said that while the Mutual
Life received SIS share tire minority
stockholders received only $50 or less.