Daily capital journal. (Salem, Oregon) 1903-1919, 1914-05-19
R. R. DIRECTORS
Continued from page onc.)

mission, turned out to be worth "about
ten cents per pound" and he declared
that despite the fact that he was op-
posed to the deal from the outset, he
was made to "face the music" f" while
those responsible jourhryel to Carlsbad
and other famous resorts.
Mellen also produced a prediction ho
wrote in 1907 which asserted that
tmany regulations would be damaged
as result of the Westchcstcr deal and
that in the end l win be the goat"
And the witness admitted that this was
how the affair had turned out.
Worsted in Interview.
The witness also declared that he
had clashed only once with Morgan and
in connection with the affair said
"I emerged from the interview
worsted, humiliated and ashamed" AT
the same time, Mellen swore, he be-
lieved the stock to be worth but inti
mated that he feared another clash
with Morgan. Then Followed tale of
how Tammany Hall had had a finger
in the deal but had cleared its skirts
by placing the responsibility up to
Oakleigh Thorne, New York finan-
cier and politician.
~ feared Morgan's IS dominating man
ner," added Mellen, "Dut | did not
fear for my job. The other directors
also feared him, and his suggestions
were carried out to the letter.
Mellen then told of an occasion when
Morgan's fellow directors protested
against the expenditure of $ll,000,000
when they had only expected to spend
$5,OO0,O 900.
"But," added the witness, "like
myself, the other directors were I'M
willing to demand Morgan's personal
reason for spending the money, and the
expenditure was approved"
Amplifying Mellen's "goat" testi-
mony, Solicitor Folk produced letter
Mellen wrote to Allen Wardcll in 1907,
dealing with the Westchoster affair.
AT the bottom it contained the follow
ing note:
Sick and Tired.
''I am sick and tired of this whole
business. l fear before it is settled
many regulations will be damaged and
that Charles S. Mellen will be left
alone, holding the bag"
Mellen identified the letter, adding;
I'm the light of present developments,
L believe [ was a prophet" "
Asked what he meant when he said
that he would be the "goat," Mellen
answered:
"When things go badly with big
corporation like the Kew Haven, some
men remain behind to face the music.
Others 60 to Carlsbad and other places
for their health, / am staying here
to fight it out as far as the Westches-
ter is concerned. It was n bad deal in
every way. | don't think 1 should
have been tempted in.o It,"
Witness Identifies Letter.
The. witness then identified letter
he had received from Thorne, which
said in part;
~ have had several interviews with
city authorities and am sure / will get
| Just what / wanted. There are people
in Fourteenth street who are favorable
to the Westchester deal and others ia
vorable to Port Chester. In the end,
both sides will have to be taken care
Of"
Asked to explain Thorne's letter,
! Mellen said:
Fourteenth street Is broad street
in New York with a building on it
known as Tammany HAIL"
The witness then recited the history
of the deal in detail. He said that in
1906, Thorne told him that he had ac-
quired the Westchester and Port Ches-
ter proposition and asked Mellen to
bring the matter to the attention of
the New Haven directors Mellen said
he did so and Morgan moved that Mel
len name committee to investigate
the propositions and determine whether
such holdings should be bought.
Mellen said he then appointed com.
mittee composed Of Morgan, William
Rockefeller and. George Miller.
"Tbis committee added Mellen
"spent $l1,155,000."