The Madisonian. (Richmond, Ky.) 1913-1914, 1914-06-09
WITNESS TELLS OF
LOST S11,OOO,OOO'
Miller Testifies That MeIIen Bor-
rowed SO, $4,000 of Sum
Without Any Approval.
DAVID BROWN ON THE STAND
Man Who Examined Morgan & Co.'s
Books for Commission Says New
Haven and Subsidiaries Kept
Affairs All In Family.

Washington, June S.-The trail Of
the lost 100000" which has fig
ured so prominently in the investiga-
ton of the New York, New Haven &
Hartford railroad led directly to the
man who first uncovered its expendi-
ture-Charles s. Mellen, former prest
dent of the New Haven.
In his testimony before Commis-
sioner McChord of the interstate COM
merce commission, l. S. Miller, presi-
dent of the New York. Westchester
& Boston, told how Mellen had him
self borrowed $9,950,000 of the $11,-
100000 without the approval, consent
or knowledge of the finance commit.
tee of the New Haven" The intima-
tor was that, as Mellen had bor-
rowed the money, he must have known
what became of it
s. goo 900 Was Deducted.
In considering this point the wit
ness said that Mellen knew that $2,-
100000 of the $11, 100000 had been
paid for the Mfllbrook company and
that therefore this sum might be de-
Quoted from the money concerning
which Mellen testified he knew moth
ing.
How the New Haven and its sub
salaries kept their financial affairs
all in the family was testified to by
David Brown, examiner of the COM
mission, who has made an examina-
tion of the books of ]. P. Morgan &
Co. Brown testified Morgan gave a
check to the New England Navigation
company for $5,162.2OS in settlement
for balance due on account of the
transfer of a block of Worcester,
Nashua & Rochester stock. This
check was endorsed to the New Ha-
ven by the navigation company and
then by the New Haven back to j. P.
Morgan & Co. All of these transac-
tions hquidated the debts between the
concerns, but in reality not dollar
was taken from the vaults of Morgan
Concerning the purchase Of the Rut-
land railroad by the New Haven,
Brown testified that the item was con.
cealed on the New Haven books to
prevent knowledge of the origin OF
the stock becoming known. He found
that the check which the New Haven
issued to pay for the stock was en-
dorsed by the New York Central. The
New Haven books have the item list
ed as a disbursement to the naviga
tion company, said Brown. Folk
asked him If he considered the New
Haven books to be false in this in
stance and Brown answered in the
Affirmative.
New Light on Billiard Deal.
New light was thrown on the
Billiard deal in Boston and Maine
stock. According to Brown the New
Haven received the dividends on the
100000 shares Of Boston & Maine
during the time the stock was held by
Billiard and during which time it is
claimed Billiard owned the stock out
right. The books, said Brown, made
this payment of the dividend appear
as a payment Of interest in notes
given by Billiard to the New England
Investment & Security company
which were held by>t the New Haven.
eff an intent to conceal these facts
had been contemplated, could It have
been carried out in this way?' asked
Folk.
Yes, and 1 accused the general au
ditor of that very thing" replied
Brown.
Brown testified that millions Of dol
lars in profits made by the New Eng
land Navigation company In stock
transfers and steamship sales ant
general business transactions wert
absorbed by jugglery. He showed
how the navigation company pait
large prices to the New Haven fol
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