Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1915-11-19
Acquiring Boston and
Maine the Completion
OF New HaUen Monopoly
Evidence introduced Thursday Trial of New Haven Railroad
NEUTRALITY-SUSPICIOUS. und Direction of MeIen and
Ledyard Following Inform ton by Gardiner NJ. Lane

New York. Nov. 1S.-The trial of the
II former New York. New Haven d
Hartford directors swung into q new
the presentation of its testimony to show
how the New Haven acquired control OF
the Boston & Maine Railroad. which viz
tually completed the alleged monopoly
which the directors are charged with
having conspired TO create.
With Lewis Cass ledyard
Through Charles 5. Mellen the govern
ment brought out that the negotiations
for the control Of the road were con
Quoted by him n 1907 with Lewis Cass
Ledyard, who represented the American
EXPRESS Co majority holdings Of the
Boston & Maine stock and who is one
Of the defendants. The fact that the
stock was for sale was communicated to
Mellen by Gardiner NJ Lane Of the bank
ing firm of Lee, Higgins & Co. Of Bos-
ton. who subsequently acted as broker
in the negotiations
How Deal Mas Completed
Mellen said Lane told him that the
American Express interests were going to
sell anyway. chiefly because they were
dissatisfied with their investment, and
that ne (the witnessl regarded the situa-
ton that might be created as so serious
that it was decided to buy the stock
rather than have il go into the hands Of
other interests. The New Haven agreed
to buy the stock he said. giving Jew
Haven stock for it. share for share. Il
order to provide the necessary New Ha-
ven stock for the exchange, Mellen said,
the New Haven's steamship lines were
merged into the Consolidated Railway
Co, New Haven trolley holding con-
Germ. and the Consolidated Co. into the
New Haven. for which $50, 600 New Ha-
ven stock was issued and kept in the
treasury for the purpose of the ex-
change.
At Morse Valuation
The witness admitted that the steam
ship lines in this transaction were given
the valuation Charles W. Morse mad
placed upon them. s30,ooo.0oo, although
they probably were not worth more than
50 000. O00 or sl0O0a,00o. The government
placed emphasis upon the activities OF
Ledyard In the negotiations bringing out
after correspondence with Meiien secured
the renewal for a long term of profit
able contract which the American Ex-
nress Co had with the Boston & Maine.
This contract would have otherwise ter
minated at comparatively early GATE
and would have automatically gone TO
the Adams Express Co.. with which the
New Haven operated.
"Mr. Ledyard told me- said the wit
ness. that the American Express Co
did not propose to sell itself out OF
business"
Negotiations were also held in the
deal. Mr. Mellen said. with the New
York Central which had controlling
interest in the American Express Co..
and there was a memorandum prepar-
ed for the operation of the Boston q
Maine by the New Haven in such
way as not to conflict with the Boston
& Albany. q New York Central road.
This memorandum was not made eff
fective, however, he added. owing to
the trouble which the New Haven got
into with the Massachusetts Legislature
as the result of which, it was for
time prevented from keeping the Bos-
ton & Maine in its possession.
Leasing Boston & Albany
With intent to prove that the New
Haven. just prior to the deal. still had
in view its alleged purpose of acquir-
ing all the lines in New England, it