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Show , IbVU MANDAMUS PROCEEDINGS IN NEW I HAVEN CASE ARE ORDERED I din Interstate Commerce Commission Will Take Action Immedi- $f ately to Coiripel Production of Books and Papers to Dis- f? close Financial Dealings Between Railroad and Bil- 5 lard Company Witnesses Flatly Refuse to i$ Answer Questions Regarding Deal- ings Involving Millions. f RIGHT OF COMMISSION IS DENIED I Chief Counsel Folk to Open Action at New Haven Testi fce mony of Charles S. Mellen Delayed to Await Outcome of J Legal Action Both Congress and Commission De- ug' fied by Defense Treasurer of Railroad Com f& pany Only Man Willing to Testify He H Gave Evasive Evidence. Washington, D.'C., April 10. Mandamus Man-damus proceedings to compel the production pro-duction of books and papers to disclose dis-close financial dealings between tbe New Haven railroad and tbe Billard company will be started immediately by the interstate commerce commission. commis-sion. Chief Counsel Folk announced tbat be would bring the proceedings, probably prob-ably at New Haven. His decision came at tbe end of a morning of examination ex-amination of witnesses who refused to answer questions intended to develop de-velop evidence of dealings involving millions of dollars. On the advice oT their attorneys, they denied the right of the interstate commerce commission com-mission to inquire into the tinancial affairs between tbe company and the railroad. When the hearing adjourned, there was a probability tbat the testimony of Charles S. Mellen, former president of the New Haven system, might be delayed to await the outcome or the mandamus proceedings. Washington, April 10. Further inquiry in-quiry Into the financial affairs of the New Haven railroad was begun by tbe Interstate commerce commission today after several weeks of investigation investi-gation of the books of the company. The inquiry, under the direction of Commissioner McChord, Is being made in compliance with a senate resolution directing the commission to develop all facts regarding tbe New Haven's banking connections; tlie purchase or its subsidiary properties, prop-erties, the money paid Tor them and the emoluments or commissions paid for negotiating the various transactions. transac-tions. Mr McChord announced tbat tbe principal subject to be considered at present was the relation of the Billard Bil-lard company to the financial operation opera-tion of the New Hnvcn. Walker D. Hines, counsel for. the present management, man-agement, said at the opening that It was the policy of Cbairruan Elliott and the present management to cooperate co-operate in every way with the commission com-mission and furnish all information. Witness Refuses to TesVfy. Harry V. Whipple, president of the Merchants National bank of New Haven, Conn., the first witness, refused re-fused to testify as to his business relations with tbe Billard company. He said ho was not now a stockholder stockhold-er in that company but had been up to last fall. "To whom did you sell your stock in the Billard company?" ho was asked. "I must decline to answer that question ques-tion because I consider it as an invasion in-vasion of my personal rights," replied Whipple. Judge Stoddard, counsel for the New Haven, explained Mr. Whipple's declination to reply. Jurisdiction Challenged. "We challenge the rights and the jurisdiction or the commission," said he, "to inquire into any act of the Billard company. Our conclusion is that such an inquiry would be beyond the scope of the commission's authority. author-ity. Acting on that conluslon, we have decided to decline to answer questions relating to such matters." "Were there any relations between the Billard company and tbe New Haven during your incumbency as treasuuer of tbe Billard company?" Mr. Whipple 'was asked. Witness Again Declines. The witness again declined to answer an-swer by advice of counsel "Suppose," suggested Chief Counsel Folk of the commission, "that it can be shown that tbe Billard company owes the New Haven railroad many millions of dollars, do you think tbat it would be desirable to conceal this fact, in view of the desire of the senate sen-ate for the information." "I think," Interrupted Judge Stoddard, Stod-dard, "tbat the senate resolution has gone far beyond the powers either of this commission or of congress. Neither tbe commission nor congress has any power to investigate the relations, re-lations, if any, ot the Billard company and tbe New Haven railroad." Declines in Every Instance. A series of questions was put to Whipple, intended to develop evidence evi-dence or financial relations between the Billard company and the i'ew Haven, or the Billard company and tbe New -England Navigation company, com-pany, He declined in every instance to answer. He refused to say whether wheth-er there had been a transaction between be-tween the Billard company and the New England Navigation company in. volvlng ?21,000,000; whether tbe New Haven, through its subsidiary, the New England Navigation company, did not advance to John L. Billard a million dollars on his four promissory promis-sory notes, or whether Billard was Indebted to the New England Navigation Naviga-tion company for 52,000,000. Counsel for the commission said 1 Mr. Whipple had been directed by subpoena to bring books, documents and contracts of the Billard company, "Are you prepared," he inquired, "to produce those books and docu-ments?" docu-ments?" "I am not," Whipple responded, and declined to say whether his re- fusal was or was not because tlie H books were too bulky. H Bank President Also Refuses. HI To Samuel Hemingway,, president of the Second National Bank ot New HI Haven, a similar line of questions Kl was put. He also declined to an- E swer. His counsel. Homer S. Cuin- LU mings of New Haven, said he had ffl concluded that "responses to such in- ifl quiries by the witness would be in- appropriate, as they were quite bo- H yond tlie powers of the commission." "Suppose It could be shown," sug- JM gested Mr. Folk, "that the Billard company was owned and controlled by the Now Haven road through dum jH my directors and officials? Wo lv-JM that have nothing to do with an in-quiry in-quiry Into tlie New Haven's financial transactions?" "I don't regard this," said Mr. Cum-mings. Cum-mings. "as a proper tribunal to con- duct this Inquiry. Congress bas no 'IH power to investigate tbe Billard com-pany." com-pany." "Even though," interjected Mr. jH Folk, "the Billard company be a hold- iH ing company of an interstate rail- - road?" p "I am not on the witness stand," mth- responded Mr. Cummings. E;V ' Witnecses Refusal Recorded. ftstf I By direction of Commissioner Mc- Ma.1 Chord the record of the progeedings to show that the witucsscs refused yjj to answer essential questions In the Iflfcl face of a ruling by the commission aflR that the question be answered and s ?P?5 despite tbe order witnesses persisted 11 in their refusal. Sfy ! A. S. May. traisuror of the New Haven, lestiried that the road did not hold securities of tbe New England ,9 Navigation company, but did own all the stock. fi "What obligations or John L. Bil- iSM lard, or of the Billard company were held by the New Haven or the New England Navigation company?" - iifjl Treasurer May Reply. ?MI "Only such," replied Mr. .May, ' as were necessary n the conduct of the mMs affairs of the New Haven." E "Did Mr. 'Billard give his note to wM tho New England Navlcation com- mS pany for $2,742,500?" HJ "I think so." IMfl "What transaction did that note H9 represent?" "It is impossible," responded the mim witness, "for mc to explain all the El details, but I think the transaction R"J was' in connection with the acquis!- gjj tion of Boston and Maine stock." El Mr. May said he knew nothing BtJ about a million dollars said to have Wm been turned over by the New England jKJ Navigation company to Billard. ilfl |