Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1914-05-20
MELLEN ON STAND in NEW HAVEN CASE

as they were taking some chances
was that arrangement with Kuhn
Loeb & Co. made with the consent of
| the board of directors?"
| "Oh, yes" said Mr.. Mellen. 'Mr
| Morgan and the entire board concur
red in the transaction" y
| Who was the real power in the
board?"
"All directors had the same author
ity."
rs the New York, Westchester d
Boston not operated now at a loss of
| 81 $50, 600 a year,"
We'll, you have figures as to that,
and | have not" said Mr.. Mellen.
Mr.. Mellen testified that the ques-
ton of the New Haven acquiring the
New York, Westchester e. Boston, or
the New York and Port Chester was
first brought to his attention In let
ter from e M. Herr, president of the
Westinghouse Co. This was about
1905, the witness stated, and his let
ter in reply to Mr.. Herr was read by
Governor Folk. It indicated that Mr..
Mellen did not think much of the prop
osition, but the president OF the Ne"
Haven intimated he would like to keep
track OF the DldlteI. <AliloliS
things the letter said:
1T looks to me like the company
was organized as a strike to sell out
to US at the proper time"
when did the Westminster propo-
sition come up next"'
tFeelers' came to me at various
times TO ascertain if I would be IN
terested in acquiring the Westchester'
| paid no attention to all this and re-
fused to lay the matter before the dl-
rectors of the New Haven until OAK
ley Thorne came along.
Mr.. Thorne told, me, as I recall
that he had acquired control of ootn
the Westchester and New York ana
Port Chester, or else he said he coniu
acquire them. He wanted me to take
it up with the directors and l SAID
had no objection and promised MIN u
bring it before the board"
"You had no idea the board Wouio
consider the matter favorably?"
Mr.. Mellen testified he laid the prop
osition before the board in the sum-
mer of 1906 and that Mr.. Morgan NOV
ed that a committee be named to look
into the matter
Were you surprised?'
81 thought it indicated the board
would do something. ] had not eN-
pected it to take it up
| Mr.. Mellen further said he, as pres
ident of the New Haven. named
Messrs. Morgan and Rockefeller as the
/ committed Mellen said that when the
committee reported about year later
that sill 1856 900 had been expended ne
found fault with the report as not De
/ ing sufficient in detail.
IT saw Mr.. Morgan he said, ana
told him that all details of the mat
| fer should have been set down, ana
that the report should have told how
aaob separate sum was spent told
him might want some time to look
nm some of these items Mr.: Nor
gan was very abrupt in his answer TO
me He was disturbed at that time
as IT was during the panic, and l LETT
his office feeling much Inundated.
"An amount approximating s9,9oS,ooo
WAS maid for the Westminster as pe-
cunning" suggested Mr.. Folk. How
was that payment provided for :"
| Mr. Mellen explained that the n
nance committee of the directors re-
ported in favor of the transactions
which he thought involved about Sll,-
| 900, 600.
The proposition" said Mr.. Melien'
was submitted for the committee by
Mr. Morgan and it was adopted py
the directors.
.what was the value of the west
chester at the time OF It's pui mas
hu tho New Haven?" asked Mr.. FOLK
.J think" replied Mr. Mellen' tha o
work amounting to about sl.Voe'ooe
had been done upon 1t and thal Tie ne,
was about 100000 in real estate. ne
original theory upon Whlch the pu,
chase was made, was that 1t shouio
stand the New Hagen aoout s0V'0VV'
600" .or,
"Wbose fault was it, that you speh'
more than $1,000 0o?", -.
| "rrbat sum was expected TO ne
sufficient basis for the financing Oh III.
road We were caught in the pahie
If 1907 and little by little put moie
money into the transaction.
NJ Folk offered in evidence a le.'
90, which had been written by Mr
Mel,en saying he was SICK anu us
eusted over the Westminster trahsao-
ton and feared that many repulataoi u.
might be damaged on account VI :.
He said also that he expected .ha' n'
would be made the goat OF the en-
tire business. o,,,ef
"pid you write that letter? asNe'
Mr. Folk. ~ AZ, Mol.
Il suppose did" replied Mr.: Mel,
len. TT represented my sentiment !.
then and it represents them now.
am not proud of that TRANSACTION a'''
7 don't know anybody that is.
Asked by Mr.. Folk concernlhs 1T, AZ
connection of Mr.. Rockefeller wiz
the nurcbase of the westehester prop
artv Mr.. Mellen said:
Mr.. Rockefeller was in ravor =
the investment in the, Westcnes.e'
hut was rather staggered at IN
anount of the cost. 1t was more Una
onvbodv thought it might be-
what did the New Haven pay 10
the westchester in the aggreea.e
how much oney did it put INTO III
property"
around s35,ooo,oOo in the aggre
gate replied Mr.. Mellen ."fhe roa
is about 26 miles long, with four 'rach
and is admirably constructed tnroue