Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1914-05-13
MELlEN WILL NOT TESTIFY
Continued from Page One)

MELlEN WILL NOT TESTIFY
Continued from Page One)
owned, in the spring of 1918, about 3d.,
600 shares in the New Haven and the
New York Central about 10000. The
Mutual Life Insurance Co., witness
said, at the time mentioned, owned
$4,000 shares in the New Haven.
Lobbying Connection
The New York, New Haven &
Hartford Railroad was connected with
lobbying against the provision of the
Panama canal act prohibiting rail-
road owned ships from passing
through the canal according to tes-
timony at the hearing today.
Timothy E. Byrnes, former vice
president of the New Haven, testified
that $1,000 paid to Clarence w. De-
Knight, a Washington lawyer, by for
mer Rear Admiral F. T. Bowles, then
president of the Fore River Shipbuild-
ing Co., for services in connection with
the Panama legislation, in reality
came from the New Haven treasury.
The Senate lobby investigating COM
mittee recently had DeKnight and
Bewles before it with relation to the
transaction, but the New Haven's con-
nection was not then brought out.
Directed by MelIen
Mr. Byrnes, who resumed the stand
today, was shown a voucher for the
transaction and was questioned by
Chief Counsel Folk in regard to it. He
said he approved the voucher at the
personal direction of President Mellen
and that he learned later that Mr..
Bowles had asked Mr.. Mellen for the
money to retain counsel in the Pana-
ma canal legislation, the New Haven
being interested on account of its
Long Island Sound lines.
Mr.. Byrnes was on the stand two
hours and again was questioned as to
payments made through his office to
various persons for services to the
New Haven, and particularly as to the
work of Arthur P. Russell, an assist
ant attorney in the Boston office. Mr..
| Byrnes resented what he called I'm
situations in the quesries as to leg
islative work. He also said many slurs
had been cast in other quarters and
before being excused made state
ment in which he said that before he
took up the New Ravens work in Bos-
ton he adopted a positive rule to "cut
OUT anything in the way of Illegal ex-
penditures in legislative matters. This
rule. he said, he had strictly adhered
to-
The task of collecting and sending
to Washington the mass of vouchers
called for by the commission, it was
stated, today, called for the services
of 800 clerks in the New Ravens main
office and the papers were brought to
| Washington from New Haven in sew
en- trunks on a special car.
William 3. Lawrence
William B. Lawrence was called as
a witness.
Before the absorption by the New
| Haven of the Boston & Maine did not
your family have large holdings in the
Boston & Maine Railroad?"
Eyes. for about 20 years. My father
and his brother and sister owned
stock
How much altogether"
"Oh, 1t varied a little from time to
time I should say the amount was
between 1900 and 1900 shares"
Value of Stock
Asked as to the value of the stock
just before the. acquisition of the Bos-
ton & Maine by the New Haven, Mr..
Lawrence replied:
In 1906, a year before the Absorb
ton. we bought some common stock
at 1876. The commonwealth of Massa-
chusetts had fixed that price the
law at that time being that subscrip-
tions for stock in railroads must be
at the price fixed by the state"
Have you estimated how much
your family has lost as result of the
| absorption"
"At a guess I should say about ST.
100000 or $780, 600"
Mr.. Lawrence said his father Sam
uel c. Lawrence, was director and
he thought the largest individual
stakeholder. He himself was clerk of
the corporation and clerk of the di-
rectors. In response to a question as
to the roads financial condition about
1906, Mr.. Lawrence read from a re-
port of the fiscal year ended June 30,
1906, made by the fourth vice presi-
dent, w. j. Hobbs. This showed the
gross earnings from operation to have
been $39, 214, 202.S6, and the operating
expenses to have been $29, 353, 36S57,
making the net earnings from oper-
| alton $3.50, S34.29. The income from
other sources, according to the report,
was s622. 0S5. 25, making a net income of
$40, 1882, 1854. Dividends declared total
ed s1,S34.646.
3. g. M. Competition
Mr.. Lawrence said that in 1905 the
Boston & Maine was successfully
competing with the New Haven and
was carrying two million more tons
of freight year. He said the capital
ization was $2S,0o0,00O of common stock
| and 100000 of preferred.
did you personally know of the