The Bridgeport evening farmer., 1914-05-21
Mellen Advocates Federal
 Monopoly of All Railroads
Continued from Page fl

 missioner McChord again presiding
 No AIdrich Letters.
 MT. Folk, taking up the matter of the acquisition of the Rhode Island | trolleys, asked Mir. Mellen:
 What assurance did Senator .Ald- rich give you to be transmitted to the l New Haven directors ??
 sI do not remember that he gave me any MT Mellen replied.
 MT. Mellen then stated that his inn pression was that. when Mr. Aldrich saw him at Stockbridge, he made 1 some allusion to bringing about a re- sumption of negotiations for the ac-5 Quisitioni of the Rhode Island troI1eys.. He thought it was in the summef of 1906. MT. Me1len said MT. A1drich did not write any letters in regard to the Rhode Island troIleys,
 MT, Folk read the minutes of meeting of the directors of the New Haven held June 8, 1906. showing that the plan for taking over the Rhode Island trolleys was disapprov- ed.
 ESQ it was shortly afterwards that MT. Aldrich saw you at Stockbridge P
 F think SO. said MT. MeIlen- He was motoring through the Berk- shires, T believe. and stopped off to see m
 Mir. Mellen further said that the United Gas Improvement Company,
  separate the Connecticut and Rhode Island trolleys
 They refused to separate the prop ertiess he declared. VI did not want the Connecticut properties..'
 The intiHation was that the New Haven shad to take the properties of both states in order to get the Rhode Island t1oIleys.
 MT. Folk. called attention to the minutes Of the meeting of Dee. 8. f<.I, the New Haven and the United Gas Improvement Company was submit ted with the approval of the then counsel, MT. BuckIand. The agree ment to purchase the trolley lines from the United Gas Improvement In ansWer to further questions, Mir. Mellen said that, while the deficit from the purchase of the Rhode Is land troIleys had not yet been made up. he was confident it would be.
 VaIue Not Excessive.
 sso you paid $1s. .oo0, GOO or s2e.-; 100000 for property worth about $s,-
 q do not accept your valuation of S, ,000. 900. The sum we paid was the value of the trolleys.
 How do you estimate the value in a case like that?'
 When Ivalue a purchasefI con slider it's prospective value. what it ultimately will be worth
 In explaining the purchase of the Rhode Island tro1leys, MT MeIIen said that the price was in debentures of the Rhode Island Security Company guaranteed by the New Haven rail- road. This was necessary because the New Haven owned the security com pany.
 As this was an inter.connp npany transaetion, said MT. MelIen, .tthe price was perfectly i'm material. It simply was the passing of securities between the New Haven and it's var ious subsi diaries. It was the changing of assets from one pocket to anoth- CT. r.''4
 Mr. Mellen declared that in the Rhode Island trolley transaction he was assisted by various members Of the board of directors of the New IIsl- ven.
 What inauence was used in the transaction 2's / 1T imagine there was every kind There always is undue influence for and against every matter Of this kind but, as to any particular prominent man, I do not recall.
 Influence Everywhere
 Was there influence exerted to in- duce you to acquire these trolley lines 2 asked MT. Folk.
 II never have known : responded Mfr Mellen, a large transportation at was not backed by influence. The object in the acquisition of these cleo tric lines. was working toward a great principle. The sooner or later, Fl felt, transportation was to be cleo tricitK. had a theory that, instead of great railroad passenger stations which are very expensive, the public would be better accommodated by the electric lines running at high speed tI1 Eh the coantry and in the cities Electric and steam railroads are not necessartly competitive.
 .I am con ddent at this nno1nent my theory would work ont and I@say now that those who were and are fighting us were opposing their own best inter ests.1
 would be fair to the public 2,'
 The control must be such as was contenplated in New England or in must be in the hands of the govern nent." answered MT. Mellen with ern- pl1asis.
 You regard control by one man as
 That is rnisnomer," declared the witness in positive ones. No one man could control it. had more bosses when was president of the New Haven at 3 salary of s60.o00 than when was clerk at $50 a nonth.,'
 Who were your bosses ?. people
 The main force was MT Morgan. was 1t not ?''
 The great force in the world is brains and MT Morgan had them, . replied MT. Mellen, strengthening up in his chair and looking MI. Folk squareIy in the eye.
 Then the control would have gone to one man ?'' MT. Folk continued.
 If his brains controlled the situa- ton he had a right to that control.,s
 Have you, in the light of later events, changed your views?s'
 Mir Morgan's death changed the situation LAST ADD MELLEN. Ptodw
 Bought Without Authority
 MT. Mellen yesterday cited instances