The Barre daily times. (Barre, Vt.) 1897-1959, 1914-05-26
MORGAN DENIES
MELLEN STORY
Says His Father Did Not Interfere with
Mellen in Management of the New
Haven Railroad System.

| New York, May 26.--J. p. Morgan last
night characterized as untrue thet testi-
mony of Charles S. Mellen, former head
of the New York, New Haven & Hart
| ford railroad, before the interstate COM
merce commission in Washington last
week, that j. Pierpont Morgan, senior,
concealed from Mr.. Mellen facts regard
ing the New Haven road which Mr. Mel
| len should have known.
| Mr.. Morgan offered to produce before
any proper tribunal at any time the rec
ords Of J. P. Morgan & Co. and the per-
sonal records of his father.
| Taking full responsibility upon him
| self for the change in the roads presi-
dency by which Mr.. Mellen resigned and
gave way to another. Mr.. Morgan said it
| was untrue that his father in any sense
took from Mr.. Mellen the management
of the road or any part of its affairs.
Regarding the absorption OF the Bos-
ton & Maine by the New Haven, Mr..
Morgan said his father deemed it advis-
able for the public benefit since it was
recognized, by others as well as by the
late Mr.. Morgan himself, that changing
economic conditions threatened the com
mercial position of New England.
Mr. Morgan's statement was his first
direct reply to Mr.. Mellen's Washington
testimony, which he examined, he said,
from a stenographic report. The state
ment read:
Il became director of the New Ha-
ven railroad in April, 1913, and resigned
December 81 Of the same year. The only
reference to me personally which ] have
found in MIR. Mellen's testimony has to
do with the fact that /, as a director OF
the company, called upon him and told
him that change in the presidency was
desirable. For any blame that attaches
to that act, whether it be accorded me
as member of the board of directors,
or as an individual, / accept full and
complete responsibility.
"There is, however, in Mr.. Mellen's
testimony something more important to
me than any possible criticism of my
self Mr.. Mellen in substance charges
my father with having concealed from
him, the president of the company, facts
which the president of the company
should have known. Every one who
knew my father knows this to be un-
true. During the last 10 years of my
fathers life he was abroad more than
one-third of the time. As the world
knows. he was actively connected during
this whole period with many different
affairs. That he would have had the
time, even if he had had the desire, to
interfere actively in the management Of
the New Haven is impossible.
''Mr. Mellen is right in describing my
father as forceful man. He is right
also in picturing my fathers deep inter-
est in New Haven affairs. My father
was born in New England and he be-
lieved in the New Haven railroad. He
recognized, as Others have recognized,
that with the shifting of the center of
population in this country and the
changing economic conditions, the COM
mercial position of New England was
threatened and that change in this
commercial position would, unless an eff
fort were made to counteract it, result
in an unfavorable effect upon New Eng
lands leading railroad. He undoubtedly
believed that railroad peculiarly sit
uated as is the New Haven with grow
ing passenger traffic at very low rates,
and with extensive Improvements re-
quired along its line, must make every
effort to increase its traffic and main
tain its position. He believed, more
over. that the New Haven and the Bos-
ton & Maine, which were not in his opin-
ion in any sense competing lines, could
be operated to the benefit of New Eng
land more advantageously together than
apart, and that no harm could come to
the public from this malgamation by
| 1f he f,.n ff tata
national regulation which the laws af
forded.
Il am quite ready to believe, also,
that he agreed with Mr. Mellen that
the entrance of the Grand Trunk rail-
way into Providence would have involved
the unnecessary duplication of facilities
for which the New England public soon
er or later would have had to pay. But
the imputation that my father in any
sense took the management of the rail
road, or any part of its affairs, out Of
the hands of the president. is untrue.
"On the ninth day OF March of this
year our firm made public a letter, show
ing in detail the total net profits from
every source to the firm of J. p. Morgan
& Co.. or to any of its members growing
out of transactions of any kind what
ever. connected with the New Haven
lines for period of 20 years. Those
total net profits amounted to approxi-
mately S350,0O0, which included their
compensation for handling, alone or in
connection with others, securities of the
par value of S333,000,0O0.
"The records of my firm and the per-
sonal records of my father are still in
tact; they are available and ready for
production before any proper tribunal at
any time.
"In the present state of the New Ha-
ven's affairs, the shareholders are en-
titled to have made public every obtain
able bit OF evidence bearing not on one
but on all sides of the question. Mean
while, the honest and capable man now
managing the railroad should have the
active cooperation not only of all share
holders. but of all public bodies as well,
to the end that this great property may
be restored to the position to which it is
entitled"
HEARING ADJOURNED.