The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-11-13
The i,5OOth Document.

VT soVVsu
Al the defendants except Henry X.
McHarg were present when Judge
Hunt opened court, and Mr.. Bats at
once took up the purchase of the Mcr-
chants and Miners and the Windsor ship
lines. which did not come TO New York.
but ran to Philadelphia and Southern
ports. The i,500th document was put
in evidence early and u sigh of despair
went up when it was realized hat about
5000 more arc to come In before u Is
all over.
The way in which the purchases were
made. according TO letters. minutes and
Charles $. Mellen. was that kidder. Pea
body & Co. sold control of the Windsor
Line. or the Boston and Philadelphia
Steamship Company. to the Merchants
n Miners Line. 80 per cent. Of which
WAS owned by the New Haven. In the
subsequent reorganization the New
Haven acquired much more, This was
in March. 1907.
There was no doubt that after presi-
ient Roosevelt had told tie New Haven
to go ahead and keep q. w. Morse out
II the Sound lines the New Haven did
Il. Letters were read showing how they
acquired piers in Providence and other
places which Morse might get.
James =. IIemmingway's name came
IN as the Merchants and Miners situa-
ton developed. He IL a New Have
banker and was q member of both
boards. He and Mr.. Mellen exchanged
letters about the company. There was
some dissatisfaction over the way In
which the lire was being run, and as
the New Haven owned 80 Per cent. of
the stock, a directors meeting of the
transportation company was held at the
Grand Central Terminal in January,
- III ~ . --..
vassed. The following year, when the
Merchants and Miners needed money.
Mr.. Mellen vas empowered to arrange
for IL.
Evolved by NeIlcn.
The outcome Of this was a plan
evolved by Mr.. Mellen which would
have put the New Haven in the coast
wise trade Of the United States on "A
most ambitious scale. Mr., Mellen
wanted To extend the line to Galveston
and then. when the Panams ANAL
opened. run "a line to the Pacific coast.
This appeared in "a letter dated August
7, 1912. addressed to Michael Jenkins,
chairman OF the board OF directors of
the Merchants and Miners Transports
ton Company
'There is on foot in Boston a strong
movement when | feel the interest OF
our company may require Us possibly To
assent-that there be put on n line of
etwee Boston and Galveston
MY best judgment Is that the line it,
self will not he "A paying proposition,
but the interests of our company would
seem. at this writing, TO put on the line
and accept the loss.
sit looks to me like a pretty hard
proposition" the writer continued, TO
ask the Merchants and Miners to sac
rifice itself by mourning Il loss for the
benefit of the general interests of the
New Haven system and this leads me
to make the following tentative sug-
g%estions."
Inasmuch as the Merchants and Min
crs would need considerable financing
Mr.. Mellcn thought losses and everything
could be taken up in one general scheme.
81 have had several talks with our
Whitney" the letter says, and | have
suggested 10 him to suggest to you that
tho other stockholders exchange their
Merchants and Miners shares for I p.r
cent. first mortgage bonds par for par,
aud that thereafter tho New Haven
openly assume control as the majority
stakeholder"
The letter goes IN There are ton
tative suggestions teaching Us from the
pool of Boston directors at the presen;
time looking to the establishment Of n
line between HostoY and tho Pacific
coast upon the opening Of the Fanam;,
Cana and 7 have Questioned whether
The Merchants and Miners would like to
project itself into either the Galveston
or the Pacific coast business as i, il al
present organized. considering we are
tho owners Of a bare ons-lalf of thu
stock.
The Witness Explains.
~Our relations with everybody con-
nected with your company are mos,
friendly. We do not desire anything
except the power 10 dictate that YOU
lose money in our interest and want
10 protect those who hold the stock. I'M
div!duals, against their proportion OF
that loss II IL is made for our account
The witness explained the last clause
by saying that If the line lost money be-
cause of the New Ravens act the road
would pay the loss.
The lines never went through, ns the
Panama Canal act shut thai waterway
TO railroad owned steamships.
After recess Mr.. Mellen testified that
the New Haven board rejected G. w.
Morse's offer. He voted for H.. but
changed his vote before he announced
the result and made it unanimous.
There had been strong protests from
$500 e'' VI
nv. Bats then turned to the Metro.
politan steamship chapter and the audi.
cnce In the court room settled back .x-
pecttng "A long and tortuous proceeding
in which the name of John J.. Billa"d is
10 appear and the lalors of l.. -. Rob
bins develop,
Up to 1905 the Metropolitan COMPANY
was an outside" freight line to Boston.
The New Haven entered the lists against
them when they announced "A passenger
service also b"tween New York and Ros-
ton by building the Harvard and the
Yale. First the New Haven started a
freight line with three new steamers.
the Did Colony, the Massachusetts aud
the Bunker I'M. later transformed will,
passenger carriers 10 succeed the Iiar-
ward and Yale, Mr.. Morse appeared ia
tho METROPOLITAN when 1t went into the
passenger busincss.
When the New Haven went after the
M"trb politai line II went into IN" fight
vigorously, Not only were steamers nut
on. but various other methods were tri Il.
Mr. Mcllen had "A ha2N idea that the Mot
ropolitan line wanted 10 get Piers ~ and
IS, North River. New York. The New
England Navigation Company got them.