The Bridgeport evening farmer., 1915-10-22
'MELLEN TELLS HOW ''NEW HAVEN'' ROAD
 BUILT A MONOPOLY
Former President of Company, Appearing for Government in 1 Suit Against Directors, De- scribes Details of Big Deals.
Acquisition of Rhode Island Companies Accomplished by Swapping of Stock After Pro position Had Once Been VOt- ed Down.

New York. Oct. 22.-Charles S. IeIs len, former president of the New York. New Haven and Hartford railroad, ap- 1 bearing as a government witness in | the trials of past and present direct ors of the road for conspiracy, today | continued his narrative of the Newl Haven's acquisition of various trans | portation companies of New England 1
 The absorption of Rhode Island companies occupied much of the wit ness time during the morning ses-i sion. Frequently he was asked to{ identify minutes of the directorsA meetings and other papers. l Counsel for the defense lost another point today when Judge Hunt, pre- i siding at the trial, ruled that the gov ernment might put into evidence an l agreement made by the New England 1 Rail & Steamship lines in 1881 fixing! rates and providing penalties for it's before been made public though itl was brought out that it had been fori years in the files of the interstate commerce commission.
 The attorneys for the defendants 1 argued that the agreement was en-, tired into prior to the enactment of ! the Sherman law in 1890 and was not ! relevant to this case. The govern i ment contend1ed that it was continued : ] in force after that date and upon it's l admission, put in evidence through Charles s. Mel1en that the directors had taken official cognizance of it at a meeting held in 1890.
 Mir. Swacker, of government cOun- sel, first showed the witness a copy of soca1led Corsair agreement which divided the transportation traffic of New England between the New Ea-- Boston 6 iDany line.
 MT! AEe1lR&N explained that this -K=as mot the real Corsssir agreement which was made on MT. Morgan's yacht.
 '"The real Corsair agreement he Isaid, covered a division of traffic be- tween the New Haven and the New York Central at the Boston & Albany , junction Cat Springfield, Mass.) But | have always referred to this agree ] ment here the Corsair- It was made at MT. Morgan's house" The witness then identified the sig natures of Mir Morgan and other di- ! rectors who signed the agreement
 MT. Mellen was then asked to I identify minutes of New Haven direc- 7 l tors meetings which described the ! successful negotiations in 1902 of . lease of the New York, Providence & | Boston line, one of the New Haven's { early competitors, through it's steam : ship connections at New York
 The lease carried with it a con tract under which stock of the New York. Providence & Boston was to be ! subsequently, exchanged for New Ha- ven stock, share for share, and tho i lease cancelled. William Rockefeller, the minutes I showed, was not present at the direc- tors meeting at which the lease was approved, but wrote, a letter asking to be recorded/as in favor of the pro position. Two years previous, other minutes revealed, the New Haven had rejected a similar proposition- r7a7a ArNF provide for the exchange with the Providence line shares was increased by S5,0OO, ,0e0, according to other min utes which the witness identified. This action was taken in May, 1892 and four months later it was shown :. that the New Haven began negotia- | tions for the acquisition of another in , dependent line,t Providence & WOr- { cester By November, the minutes re- veaIed this was accomplished
 In the meantime, it appeared that | some question of the legality of the 1aaee of the New York, Providence & Boston had come up, but minutes re- corded in May, 1893, showed that the 7 Rhode Island legislature had passed | an act approving the New IIaven's Ilease of the road and the Connecticut legislature had passed an act author izing the New Haven to increase US canitaI stock.
 MT. Swacker then laid before the jury. still reading minutes, an account of how the. directors were able to get control of the minority shares of Providence & Stonington s. S. com pany, the majority of whose stock was controlled by the New York. Provi- dence & Boston. It was the desire of the directors to obtain the complete unison of the steamship line with the New Haven.
 At one meeting it was reported to the board that 1.43O shares had been acsuired at $15O a share William Rockefeller and Charles F. Brooker. both defendants, were recorded as present at one of the meetings.
 SALTS TEXTILE co.