New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-05


and find out IL he had any communi-
cation with any one about the Grand
Trunk. told Mellen that | thought
Mr.. Morgan could take care Of him
self"
Mr.. Ledyard told his story in
STRAIGHTFORWARD way. Neither Mr.. FOLK
nor Commissioner McChord interrupt
cd him During the three hours he was
on the stand he took UP every impor-
tant point brought out in the testimony
thus far and gave his version of It, lie
was no. sworn. although he expressed
a Willingness 10 take the oath. When
he had finished nc left no doubt in the
minds Of his listeners that he was one
Of the directors who did direct.
one Of the interesting phases OF Mr..
Ledyavd's narrative related to the mys-
terious Billiard Company, and 1t was
brought TO light that Mellen had put
through the deal whereby his friend,
Billiard. made S274S,000 out OF the pur-
chase and sale of Boston & Maine stock
10 the New Haven. Neither Morgan
nor Ledyard knew anything about the
Billiard transaction. according 10 the
witness. until a meeting Of the eXecu-
tive committee IN October :, l9Os,
when they both returned from abroad
Both we're exceedingly angry when they
heard about II, especially Morgan, be-
cause Mellen had told them that Mr..
Billiard was a friend Of the New Haven
and the profits, amounting to s2'TtS,OOO,
seemed 10 them exorbitant.
Al this meeting of the executive com
mittee, Mr.. Ledyard said, the proceed
ure was informal, like all the other
committee meetings Of the New Haven.
and he declared that no resolutions had
been drawn in advance affecting the
Billiard transaction, the contract for
which had been signed the preceding
July.
Opposed to Billiards Profits.
Much opposition was expressed TO Bill
lard's profits. Morgan, Mr.. Ledyard testi-
fed. was exceedingly angry and did not
think them justified. Mellen, he added.
seemed disturbed at this.
Mr.. Ledyard intimated that, as a result.
Mellen had inserted in the minutes or
this meeting a resolution saying that all
OF the profits Of the transaction and the
stock OF the Billiard Company belonged
TO the New Haven. and that this resolu-
ton was made a part of the minutes of
the directors meeting held six days later.
Ledyard declared that he attended both
been brought up. but he had found that
II had been made part Of the record.
In the early summer of 1870 Ledyard
said. Mellen had come TO him and said
that an erroneous record had been made
in the minutes about the Billiard case.
They were very misleading and might
make trouble, Mellen told him, saying:
You know we never owned the Billiard
stock, and the profits were fixed by con-
tract. The records are twisted and want
TO correct them"
Mr.. Ledyard informed Mellen that there
were very stringent laws in New York
regarding the change OF record, but
Mellen took the position that 1t did not
amply in a case where IL was to correct
things that were untrue. Ledyard said
that a record had been made, and that
whether il was false or erroneous he
thought that the drastic laws Of New
York State would apply. The records
were not changed.
At the meeting Of the directors on Oc-
tober S, Mr.. Ledyard added. Mellen de-
clared he would do all that he could to re-
duce BILLIARDS. profits. He did not say
however, that Mellen had inserted in the
record the resolution which. Mellen de-
clared on the stand, was TO be used as
an accelerator TO affect Billiard.
ledyard Doubted Transaction.
1t appeared from Mr.. Ledyard's testi-
mony that he was somewhat doubtful as
10 the genuineness Of the Billiard trans
action. He could not quite understand
how Billiard could demand such large
profit. This suspicion apparently reached
an acute stage in the spring Of 1909 at
directors meeting called TO discuss re-
ply TO questions concerning the Billiard
Company submitted by the Massachusetts
Legislature.
Mellen Mr.. Ledyard said, had assured
him that the Billiard sale was bona fide.
Mellen submitted the questions and his
proposed reply, but Ledyard declared he
was not satisfied with the answers and
demanded more information. He said
that he cross-examined Mellen. who de-
clared that the sale was made TO Billiard
because he was friendly TO the New
Haven. Ledyard insisted on that fact
being put into the reply. His questions.
he said, irritated Mellen. who left the
chair and made an impassoned speech to
the directors. He seemed TO be hurt that
the directors did not have full confidence
in him.
I've got TO know the truth about this
whole transaction" Ledyard said he de-
manded at the time. land l will not sign
a report until do know"
The reply was amended to read that
while the New Haven had no agreement
or understanding with MIR. Billiard for
the purchase Of the Boston & Maine
stock, IL had been sold by the road TO
individuals 1t believed to be friendly.
Bonds illegally Issued.
Details Of the situation which led up TO
the financial difficulties of the New Haven
and its sale OF the Boston & Maine stock
were given by Mr.. Ledyard. He told OF
the purchase OF small road In Massa-
chusetts y the New Haven and the merg-
ing OF these two companies. For forty
years the New Haven had gone along and
issued debenture bonds under its Con-