St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-04-12
MERRITTS WANT $500, 900
THE Dull UTH IR0H NEW HAVE A LARGE
GRIEVANCE.
BILkED BY RockEFELLEn
Through His Trusted Agent, w.
G. Wetmore-i Queer Story of
Non.Negotiable Notes, Railway
and Mining Shares Brought
Out by a Complaint Filed in
the Zenith City Courts.

DULUTH. April 1.-THE mystery sur
rounding the long and intricate series
of transactions by which the control of
the Missabe road and the mines Oh the
Mesaba range was lost to Duluth and
passed into the hands of j. d. Rookie
feller.of New York, through the agency
of w. c. gilmore, is likely to be cleared
up by suit which was begun in the
district court today in the names of
Alfred and LeouidaS Merritt against W.
Z. Wetmore and the American Steel
Barge company. The complaint alleges
that in January. 1898, the Merritts were
large owners of the stock of the Missabe
railroad. Desiring to aid the company
I'D extending it into Duluth. they en-
tered into agreement with Charles w.
Wetmore whereby he and they should
together purchase large number of
shares. Wetn0re was to advance $780,
600, which was the value of the stock.
Wetmore furnished the money, and the
plaintiffs purchased the stock, and on
Jan. 80, 1898, plaintiffs executed and
delivered TO said Wetmore in this city
four non-negotiable Dromissory
- NOTES FOR 100000.
The notes were to be due and payable
July so. 1893. To secure the notes the
MefrittS pledged to We:m0re the 5000
shares of the stock issued them aud
2,ol3 other shares owned by them. be-
sides 1,535 shares of Mountain Iron, and
five of Nesaba Mountain Iron company
stock. The additional shaies so pledged
were worth S354, 2G6. In February, 1893,
Wetmore advanced s132,57 more, with
which they purchased 2.65l additional
shares in the railway, executing to
Hetmore non-negotiable note for that
amount. due Feb. 4. 1894. They further
pledged the 2.65l shares. worth 1865, 100,
TO secure this nOie. The aggregate
value of the railway stock bought by
them with the money advanced by Wet
more was $3.50. Lou, for which they paid
s432,575. In April, 1893, Wetmore. in
violation of his agreement, detached
from the notes $3.50 shares of railway
stock, for which the Merritts had paid
s432,575, and
PLEDGLD IT TO ROCKEFELLER
as security for debt of his own. In
DECEMBER, 1892. the Merritts contracted
with Wetmore to borrow S16S. 600 upon
the security of s240,O00 worth of the
railways first mortgage bonds owned by
them, On March 3. 1898, the bonds were
delivered. Wetmore failed to carry out
the agreement, but on March Is did loan
100000 OH $50, 600 worth of bonds, but
failed and refused to return the other
$4,000 of bonds. He has not vet ac-
counted for them. On March I3, 1893.
he converted the bonds TO his own use,
On April 30, 1893, after he had pledged
the stock to Rockefeller, and converted
$4,000 of bonds to his own use, he
transferred the FIVE non-negotiable notes
and the remaining stocks collateral
thereto to the American Steel Barge
company. While all these transactions
were going on Wetmore was the vice
president and and chief manager of the
barge company, and the defendant
knew that Wetmore was violating his
agreement and had no right to make
the transfer. The stocks transferred to
the barge company We're converted into
1l.531-3 shares of Lake Superior Con-
sOlidated Iron Mines stock worth $780,
900. Plaintiffs accordingly pray for
judgment in 100000.