The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-05-26
The "Compie xion OF the Record

The full typewriter record OF Mr..
MELLES's testimony last week in Wash
ington IL now available. When the
story Is read as a whole II is more
amazing than the partial reports which
came by telegraph. Back Of Mr.. MEL
LENS fulsome praise OF the late Mr.
MORGAN there Is apparent throughout
his whole testimony the effort to pass
all responsibility up to n dead man.
The testimony with reference to the
stock Of the Worcester. Nashua and
Rochester Railroad Is an interesting
example. This was II line leased to the
Boston and Maine Railroad. Large ex-
penditures had been made on the line
for which the Boston and Maine could
not get any reimbursement. II seemed,
therefore. highly desirable to purcha So
the outstanding stock in order that fu.
ture improvements made by the Boston
MELLEN's testimony. however. runs as
follows:
Mr. FoLK-Tell US now about the
Worcester. Nashua and Rochester Rail-
road. That was acquired by Mr. MORGAN
you say?
"Mr MELLES--The stock
mfr FoLK-How did Mr.. MoRGAS ac-
auire II?
mfr MELLES-How7
mfr. FoLK--Yes.
Mr.. MELLEN--He bought H.
Mr.. FoLK-From whom?
"Mr MELLvs--I think from the Mutual
Life Insurance Company Of New York.
Mr. FoLK-Did he consult with you be-
fore he purchased the stock?
Mr.. MELLEN--To the best OF my recol-
lection. no.
"Mr. FoLK-when did you first learn
that Mr. MORGAN had purchased the stock
OF the Worcester, Nashua and Rochester
Railroad?
"Mr MELLES--l think Mr.. MORGAN
called me by telephone and told me that
he had purchased it. and told me the
price.
| do?
Mr.. MELLEN--Why, he knew that the
Boston and Maine Railroad wanted to re-
duce its fixed charges, and he expected
that this purchase would be funded by an
issue of capital stock. and that We would
turn that fixed charge Of the Boston and
Maine Railroad into a contingent or divi-
dend charge by the process.
Mr.. FoLK-How much did Mr. MORGAN
pay for the stock OF the Worcester,
| Nashua and Rochester Railroad?
"Mr. MELLEN--I am uncertain. I think
1t was sl85 a share, But 1t may have been
$3.50. 1t was either $3.50 or si65.
Mr.. FoLK-Mr MORGAN, without your
having had any prior knowledge of the
purchase. called you over the telephone
and told you that he had bought the
stock7
mfr. MELLEN---I would not want to be
too positive that had never heard OF 1t
before. but my best recollection Is that
| that was the first information I had.
Mr.. FoLK--What was the conversation
between you and Mr.. MORGAN in regard
to the purchase OF this stock?
mr.. MELLEN-He told me that he had
purchased the stock and wanted me to
take 1t up with Mr.. FUTILE, who WAS
| president of the Boston and Maine Rail-
road.
"Mr. FoLK--Take It up with Mr.. FUTILE
for what purpose'
| Mr.. MELLEN--Because he bought the
stock for the Boston and Maine Railroad.
MIR. FoLK=-For the Boston and Maine
| Railroad?
mir. MEILEN-Yes.
mir. FoLK-And you knew nothing
about IT.
MIR. MELLES--Why should - ! was
only a director In the Boston and Maine.
was not president"
From this time on all pretence that
Mr.. MELLEN Is testifying ito the best
of his recollection" is dropped. Mr..
MELLRN gets under full steam. and II
Is assumed on all sides that Mr.. MoR-
GAN buys railroads when he please.
and tells Mr.. MELLEN about them after
ward Twenty or thirty pages of dis
rusSion Of This practice follows, the