The Detroit times., 1914-05-14
Former Railroad President De-
scribes Manipulation of
Legislatures by Interests
SAYS HE COURTS MOST
SEVERE investigator
Tale Promises to be Most AmaZ-
ing Exposure of High Finance
Ever Recorded
BIZ JOHN EDWIN NErIN,

5. Mellen began today what promises
20 be the most amazing story on high
| finance ever related In the United
States The former head OF the New
| Haven system, as witness before
| The interstate commerce commission
. publicly declared that he planned to
reveal the entire plot whereby legs.
atures and city governments were
purchased and entire railway systems
| manipulated for the benefit OF Wall
ST. insiders,
Although Interrupted almost at the
very commencement OF his tale, he
showed how he personally paid out
over a million dollars cor stock the
| value OF which he placed at 10 cents
Ia pound
Mellen merely laid the ground work
today for the painting OF what he
promises shall be his masterpiece,
Then he was excused TO go back TO
New England for documentary evil
dence TO back up his narrative. He
will continue his story next Tuesday
| and the interstate commerce commits
sion promises that there will be no
Interruptions, until il Is complete in
every detail
Standing ont above everything else
| In Mellen's story today was the fact
that he was the late j u. Morgan $
representative, He said that he was
put AT the head of the New Haven
by Morgan. Apparently he wanted TO
tell all about the agreement " Aieh
made him the guiding spirit in all OF
the wonderful manipulation of New
England's railway systems. But the
commissions counsel Joseph w
Folk, for some unexplained reason,
| shunted aim from this line and took
up one minor transaction the acquisi-
tion OF some $4,000 shares OF the
stock of the New York, Westchester
& Boston railway
This is the electric line between the
Harlem river and New Rochelle in
New York state over which the fast
flyers OF the New Haven road are
rushed eastward in New England
Mellen frankly admitted that the
New Haven directors put at his dis
posal 81 200 900 worth of New Haven
stock 20 be used in acquiring the "a
600 shares OF the Westchester line
from persons OF influence He said
he did not know the identity of these
people, that he did business through
the late Tom Byrnes, New YoTk's
famous thief catcher and establisher
OF the Wall-st. dead line" Inspector
Byrpes negotiated for the shares and
Mellen paid for them in personal due
bills redeemable either in New
Haven stock or in cash When asked
10 identify the persons who got the
money, Mellen leaned far over the
table and. looking Folk, squarely in
the eye, said
They were all alike. They would
| side into my Offices and get by my
clerks Then they would pull an en-
velope out OF their pocket They
would take a paper out and say: 4
have your due bill here for $4,000,
| or some such sum. Then | would
look at il. | would see il was In my
own handwriting would ask: DO
you want a check They would Say
Nothing doing, | want cash.
Then | would draS a check TO
\ Charles s. Mellen for the amount;
would send out and get it cashed.
First would ask how they wanted
II, and they would say in small bills.
would give them the money, tear
the due bills in sman pieces and see
that they went down the saver !
knew none of them but from their
noses | would always make up my
mind that they came from New forks
east side
Mellen was asked point blank
whether this money was not used for
the purpose OF bribing New York Of.
ficials. He baked at the word briD-
cry, and modified IL by saying that
\ 1t went to persons with influence.
n His next answer showed that he
/ l,A - fAa
\ was put to-
I! when Byrnes came TO me, he
\ said, che was all ready TO turn over
\ the stock. But ] considered the fran
Y chise OF the Westchester company
defective In many particulars. | told
him there could be nothing doing UNI
: I'll the franchises were amended.
gave him a list OF the amendments
I wanted and also insisted that certatr>
4 litigation be cleared up. All OF my
4 demands were promptly met
Mellen said that the New York city
4 officials-he thought the board OF es-
( innate or the board OF aldermen
I amended the franchises He could
4 not tell how the deal was put through
I or whether Police Inspector Byrnes
/. did business direct with the politi-
clans
81 didn't want TO know" he said.
"All ! was after was results for the
+ New Haven road and | would have
done business with the devil himself
I had IL been necessary
4 IL is the plan OF the government,
lwhen Mellen is recalled next week.
I ~ fix the responsibility for every
single transaction Mellen Is TO be
4 asked what the directors OF the New
Haven told him In putting over the
deals which are alleged To have re-
suited IN shameful steals
Mellen Is % years old lie is gray
and bald and his skin is like parch-
nent A closely cropped gray mus
iache emphasizes a very firm, nearly
TaTd MOUTH To-day NJ wore uarK
business suit, set OF by a wing col
az and dark red tie
After he had given his name. resi-
lence and age, Folk asked him:
What is your occupation
AT present I am helping the inter
! state commerce commission, the wit.
less responded grimly.
This brought a general smile IN
which Commissioner McCbord Joined.
Mellen said he had brought all the
New Haven papers he could find with
hi6. but that he had others at Ney
Havon and lfaufford which no WO<70