The Providence news. (Providence [R.I.]) 1891-1906, 1902-09-04
FINANCIAL PLUMS
FROM STEEL TRUST.
Dispute Between Partners Over
Profits Results in Disclosure of
Immense Fortunes Made.

New York Sept f-1f half be true that
has been recently testified TO before
United States commissioner. hearing wilt
nesses In this city In an equity SUIT
brought in the United States Circuit court
OF this district, some luscious pecuniary
plums were plucked by persons who IA
cilitated the transfer OF the Carnegie
company stocks at the time that great
concern was merged in the United States
steel corporation.
Though Commissioner Alexander has
been taking testimony since last winter
at numerous hearings held I'm the law OF
fees OF James. Schell a Elkus, every ef-
fort has been made. heretofore with sue
cess to prevent the facts there elected
from becoming public Some OF the well
known men who have been examined In
this city are William Pierson Hamilton.
OF the firm OF J. p. Morgan & Co., son-in-
law OF Mr.. Morgan; Richard Delaheld,
president of the Nationad Park bank;
George s. Hickok cashier of that insti-
tuition. and Colonel John j. McCook, of
the law firm of Alexander Green. In
the case OF Mr.. Hickok a special order or
the United States court, signed by Judge
Thomas. was necessary before he would
divulge certain of the transactions OF the
National Park bank on the witness stand
william III. Van Tine, OF Pittsburg, the
plaintiff I'm the equity suit. charges over
his signature that s24.3T was paid to Mr.
Deiafield, OF the National Park bank. for
services which consisted in three MIN
utes' telephone conversation with j. r.
Morgan Co.. and that the bank also
received an extra $1,000 for keeping open
after regular banking hours to certify cer-
tain cheeks involved I'm the deal.
CHECKS NOT INDoRSED.
Mr. Van Tine also AYERS that In one OF
the transfers OF stock J. Morgan a
Co. made two checks payable 90 the Ma
tional Park bank for an aggregate OF
S3,OS3, 600; Inat these checks were honored
and the proceeds d1sbursed to persons I'm
the deal; that neither of the checks was
indorsed. and that the bank officials po-
sitively refuse TO disclose TO whom these
funds were disbursed. except that Will
liam j. Hilands. of Chicago, who is the
defendant In the squity suit, received
$4s. .160.
Mr.. Van Tine says further that from
the handling OF another OF these Stock
Exchange deals Colonel John j. McCook
made a profit OF $4,000
Richard Delafield went TO his summer
home In Tuxedo park early yesterday.
When Mr.. Van Tines statements were
laid before him there last evening ne
begged to be excused from making any
statement on the subject, as he was about
to go TO dinner. Come to me at the
bank tomorrow" he said, "and will an
swer any questions that are pertinent"
Colonel McCook contented himself with
saying: 80 far as / am concerned the
matter Is one involving the relation of
client and counsel. and we are not In the
habit OF discussing those matters for pub
lication.''
In a dispute between w. II. Van Tine
and w. j. Hilands over the apportion-
ment Of the profits accruing from the
sale to the United States Steel Corpora
ton of certain OF the Carnegie stocks on
which they held options the pending suit
had its origin. Van Tine lives In Pitts
burg and Hilands is the senior member
Of the Chicago brokerage firm of Hilands,
Gartside a. Co.
SUIT BEGUN IN NOVEMBER.
Suit was begun I'm the United States
circuit court, In thisy. cit last November.
and Commissioner Alexander concluded
recently and taking OF testimony here in
the plaintiffs behalf. The case for the
defendant opened In Chicago last Friday,
when Mr.. Hilands himself was on the
stand during an examination there con-
Quoted before Special Commissioners
Sampser Jane. schell & Elkus. of this
city, are solicitors for the plaintiff and
Edward Denst. of that firm. has usually
represented them I'm the proceedings re-
corded here Addison c. Ricaud and GIL
bert r. Roe, also Of New York, represent
the defendant.
On his return to Pittsburg from Chi
cago, where he listened to the defendant s
testimony last Friday, Mr.. Van Tine
gave out. over his signature. lengthy
statement, Of which this is a part:
This suit Is brought on grounds Of
false statements rendered us as TO the
profits arising from the sales, and for an
accounting OF the statement by the at
torneys for defence. In which l seek
to recover a division OF enormous profits.
which Is correct only as 10 amount OF
profits. but not to any imaginary idea as
to the partnership.
"W. J. Hilands entered into partner
shrip with me TO sell stocks OF the Car
negie company and to divide equally all
profits arising on the sales. claim he
misrepresented the actual profits OF the
sales and has. with others tried 10
cover up the details OF the several trans
actions and deprive me OF my just share
Of the profits.
TELLS OF PROFIT.
I'm the sale OF A. NJ Moreland's stock
there was a proht of s93. 400 OF which I
received 81 as an equal one-half OF profits.
In the John Walker stock there was
profit OF about s77.Oco OF which / re-
profits. In the H. NJ. Curry estate stock
there was a profit OF $4,000. OF which +
received nothing. as the statement OF Hi
lands was that there was no profit I'm this
deal at all
''In the A. NJ. Moreland sale 5000 was
paid by Mr. Moreland as commissioner
for selling and $500 by J. y Morgan a
Co. as the buyers. The adjustment OF the
profits between Hilands and myself as
equal partners. was not that the total
profits we're 1900 paid by Moreland. and
that Colonel John j. McCook. Of the firm
ef Alexander Green. Of New York was
90 receive t25oo. and that other parties
were to receive 500. which left $1,000 each
~ an equal division of partnership
prohts.
Mr. Hiisnds testified last Friday that
ne had paid Alexander a Green 1890 and
Colonel McCook 1900 personally and the
other $500 % some one else. Hilands de-
s<ed repeatedly 10 Mr.. Moreiand and nv
self that he had pocketed tsS. 90 paid TO
him by Morgan a Co. and which he now