Norwich bulletin., 1914-04-30
HOW NEW HAVEN ROAD
 ACQUIRED FRANCHISES
Details of Deals Given Interstate Com
 merce Commission.

Washington. April 29.-Some of the details Of the deals by which the New York. New Haven and Hartford rail- road acquired the franchises and right of way of the New York, Boston and Westchester. and the Portchester lines. were given the Interstate Commerce Commission today by Oalzleigh Thorne, former president of the Trust Com pany of America, of New York, who, In conjunction with Marsden J. Perry, Of Providence, engineered the trans action. MT. ThOrne said the New Ha- ven road paid s11, 400, 900 furnished by J. P. Morgan and Company for the properties and that he and Perry received sT25,000 for their services. He added that in 1912, five years later after he had retired from the presi- dency of the trust company, he burn ed all the books relating to the deal
 Frank $. Fowler, examiner for the commission, called to the stand by Chief Counsel Folk, stated that exam ination of the books of the Millbrook company, organized by Thorne for the purpose of transacting the financial affairs of the two roads after their acquisition, showed that more than $1.032.000 out of the S114OO. 900 paid by the New Haven had not been ac- counted for in the expenditures Mr. Thorne explained this by saying that any balance left on hand after the transaction was turned over to the MillbrOok company.
 Earlier in the day Harry V. Whip pie of New Haven former treasurer Of the Billiard company, and Edward E- Field, former president, testified to their connection with this much discussed concern. These witnesses when they appeared before the com mission April 10, refused to answer questions pertaining to alleged reIa- tons between the company and the New Haven railroad and were threat ened with indictment.
 Today they showed willingness to answer all questions but insisted that they acted upon instructions from Samuel c. Morehouse. counsel for the Billiard company, and knew virtually nothing about the concerns affairs It has been contended that John L. Billiard and his associates made about $2,700.000 bp the deal through which the New Haven took over the Bos- ton & Maine. The witnesses, however threw no light upon this affair
 Whipple said he understood the Bill lard company was a holding concern for the Boston & Maine railroad and that the reorganization in October was only for the purpose of winding up it's affairs. He denied knowledge of any transaction whether President MeIlen had borrowed $375, 900 from the Billiard company and said that if the company had notes outstanding to the New Ha- ven road for $10,S00,000 he was un- aware of 1t.
 MT. Field showed equal ignorance of the business of the concern. He was treasurer of a department store in New Haven, he stated, and had taken the Billiard presidency merely because Morehouse had asked him to do so. He said he asked nothing about the concerns affairs. After a few months he felt a little uncomfortable about being head of a company about which he knew so little and resigned. He did not know whether the com pany was still in existence.
 When MT. Thorne took the stand he said he took up the matter of the so- called Westchester deal with Presi- dent Mellen in June or July, 1906. The two roads were at that time rivals for a franchise, and he said he told MT. Mellen that if the two were com b1ned the obtaining of franchise probably could be arranged. A letter from Thorne to Mellen on October 1o, 1906, advising secrecy as to the de- tails prior to the consummation of the deal was read into the record. 1t re- ferred to the possibility of the trans action being blocked by people in Fourteenth street" This, the wit ness explained, was because some lea d. CTS in Tanmany Hall favored grant ing franchise to the Westchester road and others favored the Portehes- ter road
 First I wish to state to you" wrote Thorne, that I am dictating this let ter and the enclosed memorandum to my personal stenographer. in whom have every confidence and that there is absolutely no risk of anyone learn ing the contents of either
 T have had several interviews with the city authorities and although some things may have to be done there I can assure you that l will get what I want, provided I own both franchises AS it is at the present time there gre