The sun., 1915-11-10
NEW HAVEN LIMITATIONS
PLEAS HIT AT BY u. S.
All the Defendants Named in Testimony for First Time
During Almost Five Weeks of Trial-Defence
Not Altogether Displeased

That concluded the nrst phase OF the
Central New England excursion. 4
little later Mr.. Mellen was writing TO
J. T. Morgan TO purchase the Pough-
keepsIe and Eastern Railroad. = small
limo paralleling the Central New Eng
land, for 100000. 1t had nuisance
value. the witness said.
what do you mean by nuisance
valuaT' asked II. l.. Bats for the Gov
ernment.
ut was a nuisance was the reply.
"A nuisance 10 Objectionable to look
at This was some nuisance. 1t made
trouble for u.s.
"How?' asked Mr.. Bats.
"Oh." replied the witness, II objected
seriously to seeing any railroad around
that didn't belong to the New Haven.
] didn't like to see II there"
The defence did not appear TO object
very much to having Mr. Melen assert
that hs was out after other roads and
had suggested foreclosure 10 the direc-
tors. They thought 1t was fair way
to disprove n conspiracy charge.
The naming OF the men on trial came
up In connection with testimony con-
cerning the Central New England sye-
tenn. which grew out Of the acquisition
OF the road above named. the Pough-
kespsie and Eastern. the Dutchess
County Railway. the Newburgh. Dutch
ess and Connecticut Railway and the
poughkeepsie Bridge Railroad.
Owned By Russell Sage.
II turned out that the owner of the
Pouehkeepsie and Eastern was the late
Russell Sage Mr.. Sage died while the
negotiations were on, but ultimately the
New Haven got the road for 100000
instead Of 100000.
De Lancey Nicoll wanted to know II
any one thought that the New Haven
had oppressed Mr.. Sage. II was unani
mously admitted that the road had not
1t developed that after the acquisi-
tion OF the roads they were merged In
an @s,o00,000 corporation. At a meet
ing Of the directors on June z. 1907.
this action was approved. and then came
the reading OF the full list Of defendants
as participating. John @. Milburn then
explained that SO far as Lewis Cass
Ledyard was concerned he had become
director around June l and had re-
signed after attending one meeting, not
to become director again until the
following year.
Mr.. Mellen here made a stateme nj |:
AL this made absolutely no difference
In the situation" he said The New
Haven owned the control OF all these
roads and II was simply putting this
control in another FORM
Then came the most spirited verbal
encounter Of the trial so far. The wit
ness had said that there were minority
stockholders in all the roads. The Gov
eminent started to introduce testimony
AZ to the efforts of the New Haven 10
buy up these outstanding securities The
defence objected on the ground that II
made no difference what was done about
the holdings SO far as the Sherman act
was concerned. The control had already
been acquired. Much OF this documen-
tary testimony was admitted showing
that at various times reports had been
submitted as to additional purchases.
There were minutes OF April s. 1910.
December ., 1910, and up to 1913. after
Mr.. Melien had resigned, showing the
desire on the part OF the company 20
buy the stock
Irritation Evident.
There was a general air OF irritability
In the court room by this time and IL
famed up when Mr. Bats offered a
lease approved By the board on March
81. 1912. by which the New York and
New England Railroad. owned by the
New Haven. was to lease track rights
to the Central New England from Hope
well to Danbury. a distance OF for'y -five
miles. 1t developed that this lease was
never executed, but trackage agree
ment was made the following year which
covered the same ground, Judge Hunt
admitted the tentative lease when the
Government said 1t showed intention.
! Most Of the lawyers were on their feet
then and objections were flying forth
with rapid fire speed. Mr. Llndabury
accused Mr.. Bats OF making a mis-
statement The Judge said Mr. Bats
was emnently fair at all times. Thomas
| D. Thacher called for a fair statement
and Mr. Bats saroastically suggested
| that Mr.. Thacher make a statement him
self. In the midst OF II all the witness
broke In with:
This lease was to be made because
! OF the minority stockholders. The New
! Haven owned the New York and New
England and also the control of the Cen
tral New England. 1t did not need to
do anything. but II recognised the rights
OF the minority stockholders and executed
the lease as II 1t were with the Penn
/ sylvania Railroad. The lease was Of
great benefit to the minority holders, for
/ II increased vastly the earning capacity
OF the Central New England by giving II
a better haul and larger traffic"
/ The Central New England history was
dropped here and the Government turned
10 the New London Steamboat Company.
1t appeared that one Stephenson Taylor
had bought the stock Tor President Hall