New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-03-17
THE MERRITTS' IRON SUIT
ct,,ptEs w. wETMORE SAYS HE HAD
FULL AUTHORITY.
REPATRIATION OF THE CHARGES MADE BY THE
MERRITT NEUTRALITY-SUSPICIOUS. "i'o"i'"
OFT OF THE BIG ROCKEFELLER IRON


,rt ronort telecraphed from Duluth. Mimi, 10 the
oefoc, that a suit had been brought by Leon'oas
and Alfred Merritt. the iron men, against the @''''
lean Steel Barge Company, alleging m!sappiopl'"
tion Of securities by Charles Whitman "eti"o'e'
vall-known lawyer of this city, was iou"u7"' ~ ~
learned YESTERDAY on proceedings taken mere oeO'e
ruetice Ingraham. of the Supreme Court y tenn
.,r,. Injunction has been granted restraining the
h,,, company from selling certain stock OF the
.l,a S,,noror Consolidated Iron Mines company
which the Merritt brothers claim to own Inc co'i-
nlaint in the suit alleges that the STOCK WAS me-
gally transferred by Mr.. Wetmore 10 tHe p@'e e
co,npanv IT having been deposited with MN as c'i
lateral for notes given by the Merritts TO MI wei
more. 49,, ..o.o
The Injunction was granted "ex-parte state
ments and Mr. Wetmore and others Interested III
the matter deny that the transfer was iiesanS
made The suit grows out of the iron liihi"s enc
prise OF the Merritts in which John d. hocheie"e'
is now largely Interested the Merritt ofo'"e,'
have been owners of large iron mining deposits III
tho f,roous Mesabic range of North Minnesota
To hiring their ore 10 the lakes they started 10
build the Duluth Missabe and Northern Na"aS'
% run from the range to Duluth' ABOUT I'm -
miles The Merrltts invited Mr. Wetmore INTO 'neir
onterprse expecting to through his influence
pocuniary assistance from John d. Rockefeller anu
o,h.r standard Oil people Mr.. Wetmore is a mem
her ~ the law Arm Of Barlow. Wetmore * Murray
Al No. 80 Wall-st.. and has done conslderao'e p"s'
ness OF IA legal nature for the RocketeIIers ~ -
said that Mr. Wetmore induced John ID. Rocheiee.
10 advance money to the Merritt enterprise ui'
ne had about 100000 invested. The Merritt IRON
mines were purchased by the Lake superior Con-
so,idated Iron Mines COMPANY, concern orsdhl%eu
In July 1888 with a capital Of S2O0oO.@o Inc imam
cal panic proved great for the Merritts 10 s'ahd
and the control Of the Lake Superior company
ulssed into the hands Of the Rockefeller interest
early this year The American steel Barge Com
panv which has Offices at no SO Wall-st, Is
Rockefeller enterprise. and transported the ore OF
thu Merritt Rockefeller mines from Duluth 10 'he
lake distributing points Mr.. Wetmore, through the
NEGOTIATIONS attending the big iron DEAL was vice.
president Of the American Steel Barge com
u,uv and one Of the vlco-pTesidents OF
the Dn,uth Nllssabe and Northern Rail
way. Leoaiias Merritt was formerly president Of
tho Lake Superior Consolidated Iron Mines COM
b op now Ne prcsi@nt in the Rockefeller interest
Tie stock Of the Merritts passed into the control
Of the American Steel Barge Company because thsy
were not able to take up the loans on 1t, ana the
rresent suit is designed to preserve their equity IN
the stock in the hope that future appreciation Oh
it, value will enable them 10 recover IL 49,,
colgate Hoyt is president Of the American Steel
Information that any mas been brought against
the barge company in Duluth by Alfred ana Leon III
brought in this city restrain the company froii,
s cnateraI To- the notes % the Merritts. which
barge company holds As to the arr
roJ from, evidence in my possession that Mr. Wet
more had full power 10 use, 10 hypothecale aii 10
renyTo'hecate the notes ana securities Oh tne HieI
rltts I'm his possession. -
lanes Ii Hoyt acting as counsel for the barge
company said that Mr.. Wetmore had no relation
whatever - the company at present. atnouSH ~, ne
Werritts came into the possession OF the company
J through Mr.. WetmOro. who deposited them as
collateral for money owing by MN 10 me con-
funy Mr. Hoyt said: LAS to Mr. Wetmore $
ryht 10 hypOthecate those securities In THIS man
| n-r / have not the shadow Of a doubt. and no one
| could have. inasmuch the company had IN us
possession. in black ana WHITE over Sne W,or
~ the Merritts full AUTHORIZATION TO Mr. Wetn0Ie
- do this very thing. The collateral not having
bene redeemed. the barge company some Tune ago
decided 10 sell the securities at public auction
I'm this city prevent the sale. ana the sul Is now
ncnding" Mr.. Hoyt declared that when the sui
came to trial he had no doubt that the company
v.nIld defeat the AIcrrts with the greatest ease.
Mr. H0vt added that he had teegrapned inquiries
| 10 Duluth and had learned that no suit had peeh
begun there as was alleged In the published dis
Charles W Wetmore himself said: MY connec-
lion Win This transaction has been entirely honor,
able and | had express authority Tor every 'hiils
dl There IS no suit in Duluth \ SUIT mas peei
b.glu here 20 restrain the american Steel Barge
| COMPANY from dsposing OF certain stock owned py
fh, Merrtts which had been hypothecated wlth
me- and which rchypothec tt,i win t'Is ~,
The company decided To- sell the stock because th-
Norrlfts could not pay their notes and they theil
began the suit 20 restrain the SAFE ...t.
When asked why he had severed ms come
| company. Mr. Wetmore replied: IN the nnahCid.
| panic last year the burden grew too heavy Tor
M to carry, and had TO give up my intere,s,,
| Did You have written PERMISSION 20 h!Po'heea'e
the Merritt stock was asked. ~
| Yes" replied Mr.. Wetm0re, emphatically
Mr.. Wetnorc is president Of the Nortn Ameri S
he retired last year. previous to the stockholders
| meeting.