New-York tribune., 1915-11-16
Forced New Haven to Re-
fuse Half of Steamboat
Stock, He Asserts.
BREAK WITH HIM,
BANKERS ORDER
Railroads Policy of Buying
Trolley Lines Urged by Him
self. Ex.President Testifies.

/ men oy looks, tndI Nhe e''uS"NS -
| New Haven case was getting so comph-
/ Gated they were at a loss to know "na'
| il was oil about or where it was lead
/ ing. This situation became so acute
4 that Judge Hunt called halt, and ~
/ was decided TO prepare written state
/ ments of part of the evidence in place
/ of further attempt to make II com
prehcnsible to the jury in an oral
presentation.
Even Charles S. Mellen. OF unfailing
memory as TO all New England trans
portation history, said; 81 am all
twisted about this matter
The evidence yesterday by which the
government sought to make good its
charge that the eleven former New
Haven directors conspired to build up
an unlawful monopoly of New England
transportation had to do with the deals
involving FIVE different Metropolitan
steamship companies. The interrup-
tion came as the government attorneys
were struggling to present an intein-
gent story of these transactions
"The magnitude of this case is tre-
mendous," exclaimed Judge Hunt. ITS
intricacies seem to multiply. Now,
gentlemen, let us see il we can't come
TO some better understanding OF this
METROPOLITAN situation. some better
way to know the difference between
these fjSe companies"
There followed a conference as to
what should be done, and finally 1t
was agreed that both sides get to-
gether on a written explanation.
Aid to Morse Refused.
A few facts stood out fairly plain
in the presentation by X. l.. Bats
chief government attorney, Of the Met
ropolitan matter, while he was allowed
to 20 on with it, He showed .hat the
particular Metropolitan line over which
Charles W. Morse had control went
into the hands Of receiver and that
J. Pierpont Morgan ordered Mellen to
refuse Morse's plea for aid.
Don't you have anything to do with
him." Mellen said Morgan told him.
He explained to Morgan that Morse
was Offering them half the Metropoli-
tan stock /; they would take up the
/ Job of rehabilitating the line.
"'Well,' Mr.. Morgan said to me,
/ Mellen testified, "'you leave him en-
tirely alone. Either break with him or
break with me-.
Mellen broke with Morse, who at
that time was in the Tombs facing the
trial which resulted in sending him to
Atlanta prison.
Passing from this Metropolitan
steamship matter, evidence was put IN
showing, by the minutes Of directors
meeting April 10, 1912, authorizing it,
the purchase of the New York Trans
portation Company, the Eastern Steam
ship Corporation and the Maine Steam
ship Company bonds.
This act brought the steamship op-
erations of the New Haven within the
period covered by the indictment, just
as the Poughkeepsie Bridge transac-
ton. brought out last week, carried the
!
New Haven within the statute of limi-
tations.
Mr.. Bats then offered to put in for
the government evidence Of rebating
by the United States Transportation
Company. controlled b. the New
Haven, but the court ruled against its
admissi bilty.
at is merely cumulative and We do
not want to carry the case any further
in its ramifications than those set
forth in the bill of particulars" Judge
Hunt said.
Purchased 6j Trolley Lines.
From the steamship acquisitions Of
the New Haven the government evi-
dence passed to the buying by it Of
sixty-five trolley lines. II is the con-
tention of the government that these
were bought up to obtain control over
street franchises in New England
towns for the purpose of blocking the
putting through Of any competing
steam lines.
The defence argued against the ad-
instability OF this evidence on the
ground that the trolley lines were all
within the borders OF the respective
states in which they were located, and
therefore the purchase of them in
volved no violation Of the Sherman law
which applies 10 interstate commerce.
Mr. Bats argued that the ultimate eff
feet and purpose of the purchases was
the point to be considered.
In ruling. the court said: at would
never do TO allow in a criminal case
that the law be misunderstood as per-
mitting a conviction because of this
gathering together of these intrastste
instrumentaities of traffic TO be used
within the confines of one state. Ii
at the expiration of the evidence moth
ing is shown but the aggregation Of
these trolley lines and it is not shown
that they were used directly in inter
state commerce, then the jury must be
directed to acquit. IL must be shown
there was the intent TO violate directly
the sherman law
With the stipulation that the evi-
dcnce be accepted on this basis the
government attorneys were allowed to
begin putting in the trolley line evi-
dencc. starting with the acquisition Of
tho Fair Haven & Westville Railroad
] COMPANY. When asked If he recalled
the directors meeting at which 1t was
preached, Mellen said
al remember il distinctly because
Mr. Miller said that he did not object
20 the acquisition of that particular
trolley line. but he did object 70 the
adoption of policy Of trolley line
ACQUISITION IN general.
81 told them then that 1t was the
time to settle the question. that we
ought 10 buy the best there was OF the
trolley lines or sell out what we bad
II was my judgment that the New
Haven Railroad should furnish all
closso, of ,r.nsnortation demanded by