Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1914-04-11
Decline to Tell Of Financial Transae.
tiens Involving New Havsn Railroad
-oHiesrs Also Refuse to Produce
Books and Records Called For by
Commission.

II It should be necessary to take
similar steps to compel the production
, Of the books and records Of the Bill
lard company another proceeding
probably will be started, according to
Mr.. Folk, at New Haven, Conn.,, as that
is the seat of the concern.
AS to the witnesses, however. tho
situation Is different. They are under
subpoena to appear here and did ac-
| tually appear and their refusal to tes-
tify was made here. 1t is held, there,
fore, that they fall within the jnris-
diction Of the district court.
In the proceedings to he started the
Billiard company, the several recalct-
trant witnesses presumably connected
with the Billiard company, the New
York, New Haven and Hartford Rail
road Company, and the latters sub
sidiary, tho New England Navigation
Company, will be- made defendants al
tho tho railroad and the navigation
company have expressed a desire to
comply with the commissioners orders
and to cooperate with It IN every
way in obtaining the information 1t
desires.
Refuse 70 Disclose Deals.
4
terstate commerce commission at
public hearing to obtain details OF NJ
nancial transactions between the New
York. New Haven and Hartford Eetl-
road and Its subsidiary, the New Eng
land Nayisation Company. and the SO
called Rllard company. thru which
millions OF dollars are alleged to, have
been Improperly diverted from the
New Haven.
Witness after witness refused to tes-
tify, to any Of the affairs Of the Bill
lard company or to produce any Of the
books. records, or agreements. said to
be in existence, concerning its finan-
cial transactions.
Joseph w. Folk, chief counsel for the
commission. then announced that he
would institute in the supreme court
Of the District Of Columbia next Mon
day proceedings in mandamus to COM
pei the recalcitrant witnesses to reply
to questions put to them and to pro-
duce the documents called for by the
subpoena of the commission.
Hearing Halted Pending Litigation.
Further proceedings we're postponed
until April 20. by which time it is
hoped that the courts will have passed
upOIl Tic H1AUUdHluS pIOCSculH8.
It has been expected that Charles S.
Mellen, former president of the New
Haven and john L. Billiard, Of the BIZ
lard company. would testify ut the
hearing which was conducted by the
commission by direction OF. the senate
with view to disclosing whether the
financial transactions of the New
Haven, under Mr.. Mellens manage
A. ID =
been legal and whether any sums i'm
properly diverted from the New Haven
could be recovered. Because the
foundation for their testimony could
not be laid without the records, they
were not called upon to testify.
Attorneys for the commission de-
clared that they expected to show from
the books and from certain witnesses
that immense profits had been made
by certain individuals officially iden-
tilted with the New Haven and with
the Billiard company thru unique trans
actions in finance between. the two
companies, and that much of this
money was recoverable to the New
Haven.
witnesses Won't Answer Questions.
Just what the Billiard company is
was not disclosed. No witness, ex-
cept Samuel Morehouse OF New Haven
would admit that he had any connec-
ton with the company. either as a
stakeholder or 40 an officer. altho the
presumed president, treasurer. and
some stockholders were on the witness
stand.
They declined "by advice Of counsel
to answer any questions concerning the
affairs Of the Billiard company. twas
maintained BY their counsel that Meth
or the commission nor the congress
had the power to require them to give
the inform:,t!cn sought.
Mr.. Morehouse. who said he WAS the
attorney for the Billiard company. aA-
mitted that "in looking after the COM
pany's business" he had taken from
the vaults Of the New Haven railroad
SO. .4o0, 900 Of securities which had
been kept there by the Billiard COM.
pany. But he said he knew OF no con.
tracts between the New Haven. and the
Billiard company. and declined posi-
lively to tell anything else concern
Ing the company. .,.
Thrsatsn Isns lssal Dattls.
Intimations were made by counsel
for the witnesses that the matter may
not Be settled without - protractsd
legal battle. Ss ssss9
Walker D. Hines. who appeared 40
counsel for tho present management OF
the New Haven. assured the commits
sion that he desired In every way TO
&c. operate with the coimnisDi0n ana 10
facilitate its inquiry. He saia the prss-