Arizona republican., 1915-11-19
LAST PHASE IF
 MONOPOLY ON IN
 NEW HAVEN CASE
rRepubIican A. p. Leased Wirel

NEW YORK, Nov. 1S.-The trial of the eleven former New York, New Ha- ven and Hartford directors entered in to a new phase today, when the gov ernment began the presentation of it's testimony to show how the New Haven acquired control of the Boston and Maine railroad, which virtually com pleted the alleged monopoly which the directors are charged with having con- spired to create.
 Through Charles $. Mellen, the gov ernment brought out that the negotia- tions for the control of the road were
 conducted by him in 1907 with Lewis
 Cass Ledyard. who represented the
 American Express company, majority
 holdings of Boston and 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 banking firm of Lee,
 Higginson and company of Boston, who
 later acted as the brokers in the nego
 tiations.
 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 he (Lane) regarded the situ-
 ation that might be created IS so seri-
 ous that it was decided to buy the stock rather than have it go into the
 hands Of other interests. The New
 Haven agreed to buy the stock, he said, giving New Haven stock for it share for share.
 In order to provide the necessary
 New Haven stock for the exchange, Mellen said that the New Haven's steamship lines were merged into the Consolidated Railway company. a New Haven trolley holding concern, and the Consolidated company into the New Haven, for which s30,00O,000 New Ha- ven stock was issued and kept in the treasury for the purpose of the ex- change.
 The witness admitted that the steam hip lines in this transaction were given the valuation Charles w. Morse had placed upon them $200OO 900, although they probably were not worth more than s9,0OO.0O0 or $10,0O0, 900.
 The government placed emphasis on the activities of Ledyard in the nego l tiations, bringing out that before the | stock was sold Ledyard, after core l spondence with Mellen. secured the re- newal for a long term of a profitable l contract which the American Express | company had with the Boston and i Maine. This contract would have l otherwise terminated at a compara- | lively early date and would have auto | matically gone to the Adams Express | company, which the New Haven ope- l rated.
 MT Ledyard told me" said the wit | ness, that the American Express did l not propose to sell itself out of busi- | ness"
 Negotiations also were held in the l leaI MT Mellen said, with the New | York Central, which had a controlling | interest in the American Express com panv and there was a memorandum | prepared for the operation of the Bos 1 ton and Albany, a New York Central, | road. This memorandum was not | made effective. however he added ow ing to the trouble which the New Haven got into with the Massachusetts legis- ature, as the result of which, it was for a time prevented from keeping the l Boston and Maine in it's possession.
 With intent to prove that the New Haven just prior to the deal, still had 1 in view its alleged purpose of acquir ng all the lines it could in New Eng and, the prosecution showed the wit ness copy of d memorandum pre- pared by him proposing that the New Haven lease the Boston and Albany. This was done in connection with a made that the New Haven sell it's interest in New York, Ontario md Western to the New York Central. The latter suggestion went before the board of dirctors and was turned down. The lease proposed Mir. Mellen denied, lad ever been placed by him before the )oard It was one of the matters which Mellen said he "thrashed out with w H. Newman. the Centrars president at that time and which New nan rejected.
 The trial adjourned today until Monday. It is expected the govern nent will complete it's case next week l