The Birmingham age-herald., 1914-05-21
SENATOR ALDRICH INSTRUMENTAL IN
 TROLLEY SYSTEM
 DEAL, SAYS MELLEN
tContinued from Page one,


 islative agent. Everybody in New Eng land seemed opposed to the railroad ownership of trolleys. I felt an en- frightened public opinion would favor railroad ownership of trolleys."
 Did you spend $400,000 in enlight- ening public sentimentg
 q know nothing of that kind
 MT. Mellen said that he knew little of the details of the work of Vice Pres ident Byrnes.
 Did he spend money 10 influence legislation?' asked MT Folk
 q am sure not" said the witness
 Do you recall the prayer from the Hilsg"
 "Yes. in general, but I know little about it."
 "Did you pay for it?'' T fancy I have to pay for all prayers | in my behalf Were a large number of newspapers carried on the pay roll of the New Haven?' asked MT. Folk. q never heard of a large number of newspapers being on our pay roll" Mr. Mellen replied.
 MT Folk read the minutes of a meeting of the directors of the New Haven, held in October 1909. at which a report of the contract with John l.. Billiard regarding the transaction in 100.94S shares of Boston and Maine was
  vious testimony. was said to have made $2.75O,000 out of the transaction.
 Mir Mellen said that a part of the minutes, which made it appear that the New Haven had made a profit of $1.649,220. was incorrect, but that clause to the effect that Billiard was only to get a commission was correct.
 Made Many Contracts
 MT. Mellen further said that he made many contracts. not only with MT. Bill lard, but with others, which he had not submitted to the board of di- rectors.
 What authority did you have to make contract with MT. Billiard involving pay ment by the New Haven of a tremendous profit on a stock transaction?''
 ''I had absolute authority. I am quite certain that the report which we are dis cussing Is erroneous-an error made per- haps by the secretary.
 MT. Folk showed that the total invest ment of the Boston and Maine in the Worcester was T.925000.
 Would the Boston and Maine not have been better off if it had continued to lease this road?' he asked.
 'As 1t turned out I think 1t would, but at the time things looked different"
 When MT. Morgan told you he had bought the stock of the Worcester road at 165 from the Mutual Life Insurance company, what did yvu say?" .-
 'T think I said, Jerusalem or some thing like that Why didn't you remonstrate with him and ask him how he came to do this?"
 'I didn't not think this was the way to approach MT. Morgan him?"
 Tt was not a question of being afraid I always had great respect for MT. Nor gan. had greater faith in his Judgment than l had in my own.'
 Was Mir. Morgan's the master mind in New Haven matters?"
 His was the master mind pretty near ly everywhere tha> Mir. Morgan was"
 MT. Mellen said he thought Morgan have been willing to yield to him in some matters of ''ordnary business
 Tribute to Morgan
 MT. Melen, testifying to his high re- gard for MT. Morgan, said: T do not remember his doing single thing on which he made dollar in connection with the New Haven while l was presi- dent
 Taking up the consolidation with the New Haven of the New England Steam ship company and the Consolidated Rail- road company, a $30000.OOO transaction. Governor Folk asked if this transaction were not to evHde the Connecticut law that prevented railroad from increas- lnK US CdQllal btOCh WltbOut uiStTiDulluB 1t to the stockholders.
 ''This may have been so," answered Mir Mellen.
 ..So you did by merger what you were prohibited from doing by law?' asked Governor Folk.
 The merger was approved by law and we liked the merger plan.'' said MT. Mel len.
 You were getting into the merger habit?"
 Just beginning. That was the incep- ton of 1t. We went back to the Con- necticut legislature and an act was passed approving of the merger"
 Who represented you before the legis- lature. Mir Robbins?" inquired Mir Folk. Yes. that was before he became gen eral counsel of the New Haven"
 MT. Mellen said he approved the fee of Sl0000o paid MT. Robbins for his leg islative work in Connecticut in connec tion with the ratification of the consolida- tion charter. - T thought he did good work and I favored paying him the money" said the witness.
 MT. Folk produced letter from MT.