Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1914-05-20

volved -
II thought continued MIR. Mellen,
that l was entitled to know more
about the transaction than did know.
1 thought / was entitled to know why
we were paying s11,000,o00 for great
big basketful of stuff that we did not
know the value Of 'rt
II never did know what the real
motive for the deal was L tried to
find out and failed. l do not mean to
convey the idea that anybody got
away with money he was not entitled
to. The committee presented its re-
port and 1t was ratified. That was
all there was to it at the directors
meeting"
Mr.. Mellen explained that In an ef-
fort to obtain from Mr.. Morgan in
formation about the report, he was
subject to further humiliation. MI
Morgan, he intimated, treated him
brusquely and refused to give him
any more information than the report
contained.
II felt" said Mr.. Mellen. that in
disagreeing with Mr.. Morgan l would
be wrong nine times out of 10.
Were you afraid of Mr.. Morgan"
asked Mr. Folk.
Perhaps there was some measure
of cowardice about my feeling. You
can put 1t that way. l stood in great
awe of Mr. Morgan, greater than of
any other man I ever et."
Mr.. Mellen explained that after the
meeting of the board, at which the
report had been adopted, ]. s. Sem
ingway. director, entered his Office
and said:
We're flying high here, spending
$11o00000 I'd like to know something
about it,
Suppose, I suggested" said Mr.
Melen, that you go and find out
I have barked my shins trying"
In fact" continued Mr.. Mellen, II
offered to appoint any director COM
mittee to get the information but they
all 'ducked.
AT the time of the purchase Of the
Westminster. there was no railroad of
that name?" inquired Mr.. Folk.
Well said Mr.. Mellen, there was
an electric line of that name which
had a franchise"
Was it purchased to suppress COM
petition?"
No, not that" said Mr.. Mellen. 81
think that the purchase was a mis-
take, as l have indicated. 1t was a
dangerous proposition"
How much did the New Haven put
into the property
Between $4,000, 900 and sac, ooo, 900, 1
believe" replied Mr. Mellen.
Mr.. Mellen said that he put up ST.
100000 to settle a suit
Who asked you?"
MIR. Ledyard." Meilen replied. He
said they wanted me to come to New
York. and I brought down cashiers,
checks to settle the suit"
Mr.. Mellen said he turned the checks
over to Ledyard and that the suit was
settled.
Taking Of 3. & M.
Mr.. Melien told Of the transactions
leading to the acquisition by the New
Haven of the Boston & Maine. He
said he took up the matter when he
was told by Gardner NJ. Lane of Bos-
ton that the stock of the Boston &
Maine was to be sold. He said he
investigated and found the American
Express Co. wanted to sell its hold
ings in the Boston & Maine and that
some of the other large stockholders
would do the same.
Mr.. Mellen explained that the ar
engagements between the American Elk
press Co. and the Boston & Maine
and the Adams Express Co. and the
New Haven were quite different, as
the country along the New Haven
lines was highly industrial and dense
ly populated. He said that Mr.. Led
yard was general counsel for the
American Express Co. and director
of the Boston & Maine at the time
the Boston & Maine was acquired by
the New Haven.
Il wrote him a letter." said Mr.. Mel
len," suggesting that he would bet
ter make a contract with the Bos-
ton G. Maine for the American Elk
press Co. before l got hold of the
Boston & Maine"
That was done, was it?''
Yes, believe so. The contract
was extended to 90 years"
. Express Contracts
Are not the express contracts with
, both the Boston & Maine and the New
Haven too low" asked Mr. Folk.
. Il believe they are. The only way
the 33 per cent. contract between the
American Express Co. and the Bos-
ton & Maine could have been made
was that if it got the Boston & Maine"
Did you have any arrangement with
: Mr.. Ledyard about the purchase of
I the Boston & Maine stock held by
, the American Express Coz" asked Mr..
Folk. ttFtt3 .>.
@ Yes Mr. Ledyard was acting as a
h seller OF Boston. & Maine stock. We
were acquiring that stock
Mr.. Folk read letter from H. w.
. Whitney, written to Mr.. Melien in
= May. 1907, in referenee to the New
- Haven and Boston & Maine affairs, In
= which the Little Father at Washing
- ton" was referred to. v.
What was the Little Father at
! Washington? asked Mr.. Folk.
Let's see-190I-I think probably
{ that was President Roosevelt" Mr.
Melen replied smilingly.s ..-
: Did you have a conference with
d President Roosevelt concerning the
s Boston & Maine purchaser" asked Mr..
h Folk.