Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-05-20


154 received by Billiard for the Boston
and Maine stock and the price OF 40
the holding company received were both
fixed by the Massachusetts railroad COM
mission.
Homer 8. Cummings. counsel for
Billiard. brought out from the witness
| that none other than Billiard was en-
titled to any of the assets of the Bill
lard Company.
Mr.. Mellen then was asked as to the
purchase of the Worcester, Nashua and
Rochester railroad by the New Haven.
He said Mr.. Morgan bought the con-
trolling holdings of the road from the
Mutual Life Insurance Company of
New York.
Mr.. Morgan His Informant.
| What was your first knowledge of
Ihe Transaction
Mr.. Morgan told me he bought the
'ad and wanted me to take the mat
up with Mr.. futile. president of
Boston and Maine, which had
ased the road at s25o.ooo a year and
and Maine"
The Worcester, Nashua and Roches-
er line, it was explained, ran from
.orcester. Mass. through Nashua to
WAS it not true that the Mutual Life
dto &c rid Of its stock in the Wor-
ester road?'
ad to unload its holdings"
SO they unloaded on the New Haven?"
asked Mr.. Folk.
Well. I don't know as to that
Mr.. Mellen said he was not positive that
he had any other arrangement concern
Ing the purchase than that over the tele-
phone with Mr. Morgan.
Explaining the details Of the acquisition
OF the Worcester. Nashua and Rochester
by the Boston and Maine, he said that
by directors Of the New Haven and sub
sequently was turned over to the Boston
and Maine without profit and on payment
Of interest at 4 per cent
Unable to Recall Number Of Shares.
Mr.. Mellen could not recall the num-
Der Of shares Mr.. Morgan bought from
the Mutual Life. but said it was a ma
jority OF the stock. He did not remem-
Der the amount involved. but said it did
not run very considerably into millions"
What compensation did Morgan get
from the Boston and Maine directors
Tor his part in the acquisition of the
Worcester"
Il do not remember that he was
given anything at all, except possibly
one-fourth or one-eighth commission"
Gov. Folk produced letter from Mr..
Mellen to President Turtle of the Bos-
ton and Maine. It was dated January
1S, 1910, and referred to the acquisi-
ton of the Mutual Life holdings. After
hearing 1t read. Mr.. Mellen said:
Il think that shows I must have had
some talk with Mr.. Morgan before the
telephone conversation, but I still do not
recall it,
81 Now, Mr.; Mellen, the Mutual Life got
Yes. the letter to Mr.. futile says 1t
held 1854 shares, so at 165 it received
us it not true that all other holders Of
shares?'
Stock when held in big blocks always
brings better prices"
At this point recess was taken until 2
o'clock.
Details Of Morgan Control.
Slowly. under the examination of Chief
Counsel Folk Of the interstate commerce
commission, former President Mellen of
the New Haven gave yesterday the de-
tails Of the absolute domination in the
affairs Of the road by the late j. Pier
pont Morgan. Everybody listened with
absorbed attention, and at times evident
amazement, as the witness related how
he stood in awe Of Mr.. Morgan. because
precedence Of financial matters; how he
had consulted with Theodore Roosevelt,
then President Of the United States, re-
garding the purchase of the Boston and
Maine railroad; how he had prevented
the late e. H. Hartman from acquiring
the Boston and Maine by getting it him
self for the New Haven, and how he had
dealt with the late Police Inspector
Thomas F. Byrnes of New York to
obtain the Westchester stock held by
persons whom he assumed to be connect
ed with Tammany Hall.
AS he did when on the stand last week,
Mr.. Mellen gave his testimony with APP
parent willingness. answering every ques-
ton readily and concisely-that Is. every
question except one. He did try to avoid
telling about the time when Mr. Morgan
Inundated him by brusquely refusing to
chester transaction, to which he thought,
as president of the New Haven, he was
entitled. When he finally related the in
cident. his face was drawn into hard
lines, and he clasped his hands over the
table in front Of him almost convulsively.
His voice indicated no signs of emotion,
however. continuing clear. distinct and
resonant.
Gives Touch Of Humor.
Later he gave the story a touch Of
humor. When Directors Hemingway and
Skinner Of the New Haven demanded Of
him why the road was expending S11 ,000.-
600 on the Westchester purchase, he said.
he offered to appoint each of them COM
mittee of one to find out; that he had
''barked his Sims in a futile endeavor
to obtain information from Mr.. Morgan,
and that they could try if they desired.
They ducked." concluded Mr.. Mellen,
grimly, and a ripple of appreciative
laughter ran around the hearing room.
Particular interest was aroused by Mr..
Mellen's account of his conference with
the then President. Col. Roosevelt, re-
specting the acquisition of the Boston and
Maine. He explained that he was great
admirer Of Col. Roosevelt and frequently
conferred with him about important ques-
tons. Col. Roosevelt said to him at that
conference, according to the testimony.
that he was not a lawyer and was not
prepared to advise what he should do
about the proposed purchase. but on Mr..
Mellens statement of the situation he
thought there might be nothing objec-
tionable in 1t. Mr.. Mellen added that the
President said he could countenance no
illegal action in the matter. and sug-
gested that he confer with Commissioner
Lane of the Interstate commerce commits
sion. From Mr.. Lane he said he got no
expression Of opinion.
-AYY TIT, tfN, r0 " nm a ryNe,