New Britain herald., 1915-11-12
WHARF PROPERTIES
 GAIN TO NEW HAVEN
Mellen TeStifeS as to Reason for
 Buying Windsor Line

1 Buying Windsor Line
 BOATS AGAIN TRANSFERRED
 Attitude of Roosevelt Led Director
 to Proceed in Aquiring Transporta
 tion Property in 1907-Mellem Ad
 vocated Morse Offer.
 1 New York, Nov. 12.-Acting upo: their understanding of the assurance:
 of former President Roosevelt that nc
 action would be taken against the New York, New Haven and Hartford railroad if they rejected the offer
 made by Charles Morse in 1907 to take their steamship holdings off their hands, the board of directors of the road continued in their policy of acquiring control of additional steam ship lines, according to testimony adduced at the trial of the eleven directors of the road today. The Morse offer they rejected in spite of strong recommendation by Charles $. Mellen, president, that advantage of the opportunity be taken.
 Mellen in memorandum had pointed out that it would be neces- sary to strengthen the New Haven against Morse competition, and the New Haven, immediately after Mel lens interview with Roosevelt began negotiations for the acquisition of Boston and Philadelphia Steamship company, known as the Windsor line, which had important wharf terminals in Providence, and which, the gov ernment maintains, the New Haven feared might get into the hands of Morse. These wharf properties, the New Haven, on acquiring the line, transferred to itself and then sold the rest of it's properties to the Mer- chants and Miners Transportation company, which was described as "A u ASAiA1S itlIeIeSt. The transaction involved voting trust advancement the New Haven was able to exercise influence in the manage ment of the Menchants and Miners and to put James F. Hemingway, a defendant director, upon the lines board of directors.
 Steps for Acquisition.
 The prosecution then began to put in documentary testimony to prove that after this the New Haven took steps to acquire other steamboat lines, in pursuance to a memorandum by Mellen to the board of directors that if the Morse lines were not taken over. it would be necessary to strengthen the New Haven against the Morse competition.
 There were two lines, the Merchants and Miners and the Windsor Line which the New Haven had it's eyes on for this purpose, the testimony seems 10 show. As for back as 1900 the New Haven had thought it advisable to get the Windsor, it was brought out by letter exchanged between execu- tive officials of the company, and in 1905 tentative negotiations were in progress for its purchase.
 Action in that direction was taken on January 12, 1907, when the di- rectors of the New England Naviga- ton company, 8 New Haven road question Of it's acquisition to a com raittee with power. |"
 Buying of Windsor Line.
 On February g, 1907. Mellen re- ported to the board that as head of the committee he had acquired the Line, through Kidder, Pea body & Co.,, Boston bankers, and his action was approved. The price was s1s5 a share and the bankers got $9.25 per share commission.
 Meantime, according to letters ex- between Mellen and J. C. Whitney of the Merchant & Mining Co.,, "A friendly inter sst,' MT. Mellen had sought to induce .he latter line to purchase the Wind ,or. The Windsor stock was selling j.. that time, according to one letter 1t $1.30 a share.
 Mellen characterized the line as one we would rather not buy,' but that he line owned wharf properties in which the New Haven re- i ,arded as important.
 The negotiations with the Merchants | md Miners did not materialize, and 1 Mellen then jumped in and bought l the line himself.
 It was soon arranged, according to ,ther letters and minutes, to consol- date the Windsor with the Mer- .hants and Miners und1r a voting rust except that the wharf proper ies were transferred to the New Ha- -en. The Merchants and Miners was hen independent.
 Result of Transaction.
 The net result of this transaction, explained MT. Mellen, was that the Jew Haven acquired a voting inter-