South Bend news-times. (South Bend, Ind.) 1913-1938, 1914-06-03
James Elton. New Haven Di-
rector, Declares Railroad
President Was MainSpring in
DiTeCtOrShip Affairs.
SAW EXTRAVAGANCE BUT
ENTERED NO PROTEST
Witness Declares He Never Had
Nerve to Question Financial
Operations of His Colleagues
on Board.

WASHINGTON. June 3.-James S.
Elton, one OF the directors OF the New
Haven, was the first witness called
when The Interstate commerce COM
missions lnveSt!s cation into the New
Haven road was resumed today.
Elton, who is % years OF age. said
he was manufactures until he got
too old. he IS now banker and a
director in the New Haven road
Folk plunged directly into the ques-
ton Of the Mestchester deal, asking
the witness IL ne was present when
Morgan, Rockefeller and Miller re-
ported to the board of directors that
they had spent SI1,O0O,0OO on the
Mestchester enterprise.
Elton said he was.
What was your opinion Of the
deal?"
Il considered it extravaganza"
What old you do?"
Nothing"
why not?"
Because l had implicit confidence
in the business ability of Rockefeller.
Morgan and Miller and If they said il
was a good thing 10 do 1 did not think
it was up TO me to question IL"
Says MelIen Dominated.
who was the dominant hgure in
the board OF directors Of the New
HaYen?"
MIR. Mellen"
Folk asked if Elton did not mean 10
say Morgan"
4 did not" answered the witness.
Mr. Morgan had tremendous infiu-
ence. IL is true but / think Mr.. Mellen
was the dominating spirit of the
board"
Q-Do you remember any specific
/ instance when a proposition broached
| by Mr.. Morgan was opposed by the d.
rectOrs?
A-Not any specific instance, no.
Q-Did the directors later express
their disapproval of the deals brOach-
ed by Mr.. Morgan?
A-They sometimes did.
Q-When Mr. Morgan left the room
did the directors express disapproval
which they haG been afraid 10 express
when he was there2
Il would not say that they were
afraid to express this disapproval----
Q-But they did not do so when Mr..
Morgan was there?
A-No, they did not.
Q-Would you sit quietly by again
and allow the Westchester deal 70 DO
put over?
Made No Explanation.
Elton said that Morgan made no
explanation of the expenditure OF sll,-
+ tuu.uUU in connection with the Rhode
Island troueys. Folk pointed out to
the witness that the New Haven had
spent $36,O00,000 on the Westchester
/ and that Ii had been operated at a
! loss. Elton replied that II was expect
I ed il would be operated at loss.
Elton said he knew nothing about
I the exchange Of three shares or West
/ chester stock for one Of New Haven.
How about the slush fund OF ST.
] 100000 which the New Haven gave 10
; New York city officials Tor the iran
/ chise changes?"
II know nothing about that except
what I have read in the newspapers.
"Didn't YOU think that $1,000, 900
was a pretty high price TO pay for
what the New Haven got In the Rhode
/ Island trolley deal?'
Yes, 1 thought So"
What did you do about ~"
/ Il expressed my disapproval OF the
| scheme and then voted for Il
/ "Why?"
It can't exactly say, except that I
/ had implicit faith in AIr. Mellen, and
( he advocated the plan.
/ Was Naturally 1imid-
/ Elton gave natural timldlty as the
/ reason why he did not express his
/ opinion on the purchase OF the Rhode
! Island trolleys III was not a railroad
man. Morgan and Mellen were.
! Il had faith IN their Judgment ne
said II had no railroad experience
and had 70 take their advice which l.
( believed TO be- the best lL seeIheu =
/ big price TO pay. but 1 thought they
ought 10 know"
.'Mr. Elton. what did you say 10
your son the other nightf'
why. that was just little conFer-
satfon about the New Haven inVestlg9
I ton. we were wondering when it
would be over 1 believe ! said nae
( lived -e years 10 fnG that 7 belonged
/ to a damn fool family"
How could you tell whether you
were attending q directors meeting oL
I the New England Navigation company
or the New Haven2'
"I knew that one was one company
and the other another"
Same men in bOth2'
! yes"
/ Didn't you get confused
'I was always confused. They were
going so fast and I am hard OF hear
1 ing"