Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1915-11-30

New Haven & Hartford Railroad never
controlled the John L. Billiard Co,
! Charles S Mellen testified today at
the trial of the IL former directors of
/ The road. but for two years Mr.. Mellen
said he held the stock Of the oneman
company himself.
! This testimony followed the efforts
| of the government. to show that Bill
lard assigned the stock of this COM
pany 10 the New Haven which coun-
sci wanted to prove in order to sub
stantiate their contention that the
| Billiard Co. was "a creature of the
/ New Haven" organized for the pur
| pose Of holding Boston & Maine Rail-
road stock to evade the law and for
other illegitimate purposes.
! Government Satisfied
| The federal attorneys professed to
be satisfied, however. with the wit
nesses testimony. He said that con-
! trary TO minutes of the board of di
rectors which puYported to show that
the Billiard Co.'S. 100000 stock was
assigned to the New England Eaviga-
! tion Co, new Haven subsidiary, it
/ was in fact Endorsed by Billiard in
blank and turned over TO him. Mellen
said that he kept the stock together
with notes Of Billiard and several mil
| lions of securities in sealed enve-
| lope from 1909 to 1911 and then turn
/ ed them back to Billiard.
During this time, Mellen testified the
Billiard Co, invested in $4,000 worth
of the bonds Of the Boston Herald,
bought a note for 100000 from its
then editor, W. Z. Haskell, and made
| loans to other newspaper men.
Billiards Real Profit
| Although in the transaction by
which Billiard bought the New Ha-
ven's $780, 200 Boston & Maine shares
from the New Haven and sold it back
year later-'an absolute sales, the
witness called it-Billard's nominal
profit was s2.750,000, all Billiard actual
! IL got was $4,000, Mr.. Mellen testi-
/ field. Mr. Billiard was asked to take the
reduction, the witness explained, on
| the theory that he was "a friend Of
the New Haven"
1t was also brought out that sS775.o00 Of
Billiard company funds We're used to pay
personal obligations Of Charles S. Mellen
of the New Haven and for which / did
not have the proper vouchers" On July
Il. 1913, the New England Navigation
Co, it appeared from the witness testi-
/ -1ony loaned Mellen the money on his
note, accepting as security $4,000 odd
shares by the Billiard Co. stock This
note the Billiard Co. later paid and got
its stock back. Except that a portion
of the personal obligations" was due
the Billiard company itself, the nature OF
them was not disclosed. IF my direc-
tors had asked me to take a pound Of
flesh out of him, he would have gone
away bleeding" said Mellen referring to
Billiard.
/ Closing this chapter Of the case. the
government took up the acquisition OF
the Worcester. Nashua & Rochester
(VermonO Railroad by the Boston &
Maine at the behest Of the New Haven:
the acquisition in 1911 of the Rutland
Railroad. an alleged competitor; and the
traffic agreement between the New York
! Central and the New Haven whereby the
| two roads shared in the business of the
| Boston & Albany and thus, it is alleged,
| siIopressed the latter roads competition
with the New Haven. This agreement,
which was to run until 1899, was after
ward rescinded. and the acquisition of the
| Rutland Railroad, which was bought
from the New York Central with the ap-
proval of the New York Public Commits
sion. became the subject Of minority
! stockholders suit to restrain the pur-
chase. All the facts in the matter were
not before the commission. the prosecu-
ton said when its approval was given.
The government then took up the acqui-
| sftion of the New York. Westchester &
Boston Railroad Co, which precipitated
an argument as to its relevancy to the
indictment which was unfinished when
adjournment was taken until tomorrow.
The prosecution maintained that the road
was never projected beyond the limits OF
New York and was therefore an intra-
state road. Unless ruled out by the
court, this phase Of the case may bring
forth interesting disclosures Of the in
side working of New York politics. The
| Westchester stock is alleged to nave
been held by persons with political infiu-
ence who sold it at a high price to the
New Haven upon the successful amend
-,.,+ of the company'S charter to suit