The Birmingham age-herald., 1914-06-04

amount of the profit by the board?'' the inquisitor continued.
 That was left to the executive com mittee."
 ne board would then leace such mat ters to the executive committee?"
 Yes, practically
 What do you know of campaign contribution made by MT. Mellen?"
 "I remember that at one meeting the opinion was expressed that there was to be no more of that sort of hair splitting"
 Was the New Haven not operated as an adjunct to Wall street as a speculative enterprise?'
 No. l believe MT. Morgans heart and soul was in the New Haven, and do not think Wall street had any thing to do with it.
 What is the difference between the present conduct of affairs as compared with the former method?'
 "Well, the directors have learned a great deal" witness replied. They are not taking one mans word Then the head of the road Is a very different man. MT. Mellens ambition ran away with him. MT. Elliot is more deliber- ate. He does not go with such rush He does not carry members of the board off their feet. The directors now direct"
 Do you regard the control by one man, as Mir. Morgan controlled the New Haven, as a bad thing for the pub 1ic?"
 Yes, I do"
 Were you present at the meeting at which MT. Mellen at the time he retired from the presidency of the New Haven was voted $30,000 a year for five years?"
 "Yes," witness replied. T believe the oA 1.o, 11r tl,o 1t of a feeling of sympathy for Mr Mel len. Almost immediately the directors regretted the step and at the next meeting the vote was rescinded."
 Did you not know that you were voting away other peoples money?"
 "Yes; I think we realized what we had done after we took the vote.'
 Cromwell On Stand
 Cromwell al the afternoon session asked MT. Elton If it was not true that the increasing floating debt of the New Haven represented properties acquired and not misappropriations?
 Mir. Elton said he thought that was the case.
 In passing on the purchases brought before the board you were guided by in- formation MT. Mellen gave on the sub- ject, and by the prospective value of the properties bought?''
 I eS, SIT.
 "It was to obtain foothold forever in the Metropolitan district to obtain great and important terminal facilities, that you were acquiring these subsidiary prop critics like the Westchester, was it not?'' MT. Cromwell asked.
 Tt was"
 This action was constant with the policy adopted by the New Haven and by other great railroad systems, was it not?"
 ''I think sc" witness replied.
 Did you regard Westchester purchase wise or incorrect?''
 Well, I regarded it big price, Mir Folk, for what I considered dead char ters " testified Elton.
 Witness thought the Westchester road in time would relieve the congestion at the Grand Central station in New York by aiding the subway.
 William Skinner, the next witness, has been a New Haven director since 1902. He did not recall J. P Morgan making statement regarding the West Chester purchase at any meeting of the board. He said he did not favor the purchase of the West Chester, but raised no objection at the meting when the committee reported in favor of it.
 T went later to MT. Mellen,' the wit ness added T told him I thought $11,- 900, ,000 for the eWst Chester was an un- conscionable sum. He told me he would appoint me a committee of one to call on MT. Morgan about the matter, but did not do so.' Why not?" Well, l had confidence in the com mittee."
 The New Haven directors, up to the l time the committee made it's report | MT Skinner declared had be, 7 1 the impression that the West could be acquired for about s5,o0o.U,4 "A POtentate Value Asked as to the purchase of tho Rhode Island trolleys for S20,000, 900 the witness said the trolleys had "a poten- tial value"
 MT. Skinner asserted that the pur- chase of trolleys by the New Haven were based on the natural growth of New England. He thought many of the investments wise, considering the po- tential value of the properties.
 ''I am one of the largest stockholders of the New Haven" the witness continued. And it is my belief that if their and it's officials had not been subjected to inim- ical investigations and legislation, the property would have pulled out all right D MT. Skinner did not know he said, ex- cept as he had read 1t in the papers, of any sums paid to men as legislative agents. He also said he was unaware of any large sums paid to newspapers. Mir. Skinner said he was present when 109 94S Boston and Main shares were sold to John l.. Billiard at 125, and he SUD- posed that later, when the shares were sold back to the New England Naviga- tion company at 15o. Mr. Billiard was en- titled to the profit, $2. 2.74S,70O. The witness said at that time he had just returned from a trip around the world and was not familiar with details of what had beer done.
 "Would you consider $2,74S,700 a reason. able compensation for acting for the New Haven?' he was asked.
 Took Big Chances
 Well, MT. Billiard took the chances oi suffering heavy loss. If he afterwaro sold the stock at a profit he should say he was entitled to that profit"
 "If MT. Bilarod took no chances, would you consider a profit of $2.7OO,OO0 a reas- enable compensation for his services?'
 "On that statement I should say 1t was unreasonable"
 As a rule, the witness said, the vote. taken at meetings of the New Haven di restors were unanimous. Did you differ with Mr. Morgan at any meetings?"
 But you regarded Mir. Morgan witt reverence?'
 Respect is the word I would use" You felt he was nearly almighty il finance?"
 Pretty nearly" Of the organization of the New England Investment and Security company, tn, witness said. MT Mellen had SlOO.O0O worth of stocl in the investment company and asked tn, New Haven directors to help him out 1T | the matter I took 200 shares and othel