The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-05-15

Haven and HARTFORD hiroau COMPANY,
said Solicitor Folk addressing the wit
ness.
Picked by MIR. Morgan.
ssyhy the person whom have always
regarded as almost entirely responsible
for my connection with the New York.
New Haven and Hartford company. that IL,
the person who took the greatest personal
interest In making me president. was the
late Mr.. Morgan"
q. hid Mr.. Morgan first suggest to you
the idea Of becoming president OF the
New York. New Haven and Hartford
A forget whether II was Mr.. Morgan
or the late William n. Bishop, They
were both interested in having me leave
the Northern Pacific and come to the
New Haven, but my personal relationship
wa. more with Mr.. Morgan than with Mr..
Rishop NV connection with the Northern
Pacific brought me into close rela-
tionship with Mr.. Morgan.
O. State what was said Nv him In con-
nection with your becoming president or
the New Maven. A. did not have any
thing 10 say to him. He did it himself.
O. In what way did he do it, A. Sc
cured my election by the directors had
no negotiations. 7 dii no, know what my
salary was to be. Mr. Morgan told mo
he was going to make me president OF the
New York. New Haven and Hartford Ran.
and thanked him. 7 thought II was the
reward OF good service.
O. Was it, a. 7 think so.
O. State what else took place " any
thing. A. Nothing excep, that I was
elected.
Q. When you tool, charge OF the New
Haven railroad president what was
tho policy Of the board Of directors In
reference to extension OF the investments
Of the road In securities OF other roads?
A. found that they had been acquiring
for years large amounts OF the securities
Of their leased lines apparently with an
ultimate view to their merging or union
with the main lire or parent company.
They had contro, Of several trolley com
panies and several steamship companies.
O. Did that policy continue during your
term A. II did
q. Was II your policy or some one
o,se's policy? A. was in accord with
the policy.
The wrstche.tcr Line.
Mr.. Folk then took up with Mr.. Meller
tic acquiring by tho New Haven Of the
Westminster trolley line. IIo read the fol-
lowing memorandum which had been
handed TO him by Mr.. Mellcn:
NEW HAVEN. January. 1909.
Upon presentation of this memo
Ysndum there will he delivered shares
~ the capital stock Of the New York.
New Haven and Hartford Railroad
Company. with all dividends accrued
thereon from above date or this
memorandum will he cashed at the
market value OF said stock on the
date Of presentation. with such ac-
crued dividends. hut In no event shall
the stock be valued at more than
$3.50 per share"
Q. What is that memo, Mr.. Mellen
A. That Is form OF personal due bill
which ! gave for New York, Westcheste
and Boston shares. 1t was eventually
redeemed by the New York. New HaveI
and Hartford Railroad in It's own shares
OF capital stock. You will md in tn
records. II you have the New Haven rec
ords In your hand. "A vote of the board o
directors, by which some 5000 shares o
the New Haven stock was transferred 4
me for the purpose OF acquiring outstand
ing minority shares OF the New York
Westminster and Boston Railroad
O. Were these 5000 shares Of New Ha
ven stock transferred TO YOU in escrow
A. That was the real intent OF the trans
action.
O. In escrow for what A, For the &C
oulsltion of three times that number o
shares of the New York, Westcheste
and Boston Railroad Company.
O. And these shares were to he de
livered to YOU? A. They were TO be de
livered 10 me and 1t was the understand
ing OF the parties that ] was 70 hold TIL
New Haven stock for tho redemption o
those shares which they had.
O. Who were the parties? A. ] neve
was able to meet tho parties. There wa
man sent up to deal with me in IN
transaction. ! never supposed he wa
ANYTHING more than-what IL II you cal
it?-a fence" that is H.
o. There were certain franchises whic
Won desired to secure and have amende
with reference TO the Westchester? 4
There were c'-.ain franchises which IN
Westminster ho,. which We're insecure an
needed notifications.
wished an Immediate Exchange.
O. And these shares OF New Have
stock amounting to si,200,000 wer
placed In your hands in escrow 10 :
delivered when the franchise should h
amended IN certain specified particulars
A. As | recall it--and 7 was not pal
ticuiar to understand II very well--w
were perfectly willing 10 put up II
5000 shares--the New Haven road wa
in my hands The other parties al
parently had their $4,000 shares a,
cumulated ready for delivery The
wished to make an immediate exchanr
our people were unwilling to make u
immediate exchange and said that IN
situation should remain in statu a.
Until such time ms certain needed modii
cations In the franchises, certain ltlgi
ZION then pending and certain thinl
which were Of questionable validity WEI
validated
.. That agreement was In writing vi