Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-05-21
TELLS HOW ROOSEVELT
BLOCKED SALE OF SHIPS
Acquisition of Steamer Lines by
Charles W. Morse Opposed by
the Then President.
100000 A YEAR NOT FREEDOM
Had More Bosses as President of the
New Haven Than When He
Was a Low-Salaried
Clerk.

Charles S. Mellen, former presi-
dent of the New York. New
Haven and Hartford railroad told
the interstate commerce commits
sion today that he favored rail
road monopoly, to be controlled
and regulated by the govern
ment, and that such a monopoly
would be beneficial to the public.
Despite the fact that he had been OH
the witness stand for two days. undergo
Ing almost uninterrupted questioning by
Joseph w. Folk, chief counsel for the
commission. Mr.. Mellen apparently was
In good physical condition for today's
examination. At the conclusion of his
testimony yesterday Mr.. Mellen began to
show signs Of fatigue from his prolonged
Efforts 1t appeared today. however, that
he was much refreshed after a good
nights rest.
Examination Not Ended.
Just how long Mr.. Mellen would con-
today. The prospects were. however, that
he might not finish his testimony for at
least two days and possibly longer
Although the hearing was not sched-
uled to begin until 1890 o'clock the spa
cious hotel room where the inquiry ie held
was crowded with spectators half an hour
earlier. Mr.. Mellen and his counsel, ].
w. H. Grim, did not arrive until few
minutes before the set hour. The former
New Haven president appeared in good
humor and told friends that he felt no
strain from the two-day grilling which he
had undergone
There was considerable delay before Mr..
Meiien took the stand, Commissioner Nc
Chord again presiding.
Mr.: Folk. taking up the matter of the
acquisition of the Rhode Island trolleys,
asked Mr.. Melien:
No Assurances by Aldrich.
What assurance did Senator Aldrich
give you to be transmitted to the New
Haven directors?''
Il do not remember that he gave me
any," Mr.. Mellen replied.
Mr.. Mellen then stated that his inn
preston was that when Mr. Aldrich saw
him at Stockbridge he made some aIlu-
sion to bringing about a resumption Of
Rhode Island trolleys. He could not re-
call the date of this meeting, but said
it was in the summer of 1906.
MIR. Mellen further said that the United
Gas and Improvement Company during
the negotiations refused to separate the
Connecticut and Rhode Island trolleys.
They refused to separate the proper
ties" he declared. We did not want
the Connecticut properties
To Make Up Deficit.
Mr. Folk pursued his inquiries con-
ne tho
directors of the New Haven. He called
attention to the minutes Of the board of
December 8. 1906. at which the contract
between the New Haven and the United
Gas and Improvement Company was sub
mtted with the approval of their coun-
sell Mr. Buck.and. The agreement to
purchase the trolley lines from the Unit
ed Gas and Improvement Company was
oy the board
Has the deficit that resulted from the
purchase of the Rhode Island trolleys
ever been made up?' Mr.. Folk asked.
No, but l am confident it will be.
said Mr.. Melien.
$50 you paid s1s.OooOoO or saoOoo.oov
for property worth about SSOo0.0o?"
Il do not accept your valuation OF
ss.0Uo.G0O. The sum We paid was the
value of the trolieys.'
In explaining the purchase of the Rhode
Island tsoiieys, Mr.. Mellen said that the
price paid was In debentures of the Rhode
Island Security Company, securities guar
aateed by the New Haven railroad. This
was necessary because the New Haven
owned the Security Company.
las this was inter-company trans
action" said MI Mellen, 'the price was
perfectly im,naterial. 1t simply was the
passing of securities between the New
Haven and its various subsidiaries. 1t
was the changing of assets from one
pocket to another.
Backed by His Directors.
Mr. Mellen declared that IN the Rhode
Island trolley transaction he was assist
I'd by various members of the board of
directors OF the New Haven.
Il used TO winnow out the chan drop
ping out details. after comforting with
some director and then taking up the
main points with committee.
WAS influence used in the transac-
.ion?''
II never have known responded Mr..
Mellen. a large transportation matter
hat was not backed by influence. The
act is that in the acquisition OF these
.lectric lines l was working toward a
great principle.
sooner or later, 1 felt. transportation
was to be by eiectrlcity. l mad theory
hat instead of great railroad passenger
Ito tions which are very expensive the
,nhItc was going to be better accommo-
iated by the electric lines. running at
high speed through the country and in
he cities. Electric and steam railroads
ire not necessarily competitive. / am
.onf,dent at this moment that my theory
uould work out, and / say now that
hose who were and are fighting us were
opposing their own best interests
"Do You think control of that kind
vould be fair to the public?
.~rhe control must be such as was con-
empiated in New England. or It must be
The hands of the government" an
,wered Mr.. Mellen with emphasis
You regarded control by one man as
good thing?'
Had Numerous Bosses.
THAT is a misnomer." declared the