New-York tribune., 1903-06-19
UNAWARE OF PAYMENT.
OF NOTE FOR 5000, 900.
Metropolitan Securities Co. Paid 1t
for u. FL. FIynn

The taking of testimony in the action brought
by Isidor Wormser. jr.. to set aside the lease OF
the Metropolitan Street Railway Company to
the Interurban Street Railway Company was
brought to close yesterday, with l. A Helms
heimer, of Kuhn, Loeb & Co. and Patrick FL.
Flynn the last witnesses called for the plain
tiff. No evidence was put in by the defendant
corporation and the case adjourned until
Monday, when counsel both sides will sum
up The hearing was enlivened by a clash
between Mr.. Stickney. counsel for Mr.. Wormser,
and Mr.. Guthrie for the defendant, over an
intirnation by Mr.. Stickney of fraud on the part
of interests arrayed against his client
Louis A Heinsheimer of Kuhn. Loeb & Co,
the first witness verified list of those interest
cd in the syndicate to whom the $66OO'OOo Met
ropolitan securities stock taken by his firm was
allotted. He asserted that the S1.500.000 Mr.
schiff had testified Kuhn, Loeb & Co. received
IS profit included all the preliminary expenses
of organizing and starting the Interurban and
Metropolitan Securities Company, as well as the
100000 fees paid to the Morton Trust Com
Iany. His firm really made about S60OOOo he
declared per cent on the $4,000 1000 for which
it had assumed liability.
Mr.. Stickney called Henry a Robinson and
began to question him about certain expendi-
tures in construction shown the fiscal reports
Of the Metropolitan Street Railway Company
Justlse Scott interrupted him by asking now
that line Of testimony was relevant. Mr. Stick
ney said:
Constructvely there has been the greatest breach
Of trust Although I do not doubt the - men 1f1
Jaw, it is evident they have been led away. Mr.:
Whitneys testimony very briefly given she showed t5d
tangible securities of this great metropolitan com;
Control the entire Transportation acilties of New
York City. We contend that the interests OF the
that great profits were to be made at their expense
by those men who controlled or advised the dl-
rectors of the company.
Justice Scott ruled the questions irrelevant.
Patrick H. Flynn. who organized the original
Interurban system and gave it's stock and bonds
and certain agreements to Kuhn. Loeb & Co. as
security for loan of 100000. identified his
note, given for S2OO,0O and the other papers
relative to the incorporation. etc. Of the Inter
urban company. which have been admitted IN
evidence.
Mr.. Stickney showed him a check for Sl,lSo.-
600 signed by Robert Walker for the Metropolf-
tan Securities Company and paid by the Morton
Trust Company in March. 1902. and asked him
if he got the money. Mr.. Flynn said he be-
ueved he got about SSO00O0 His bank book
showed no entry OF any deposit larger than
So 600 during March, 1902. He received vari-
Gus sums of money president Of the various
enterprises and checked against them lie 1oen-
tilted a check for $250O00 he cashed at the Nor
ton Trust Company in September. 1901 as part
payment Of an $500 900 deal in connection with
the Interurban railroad. Replying TO Mr.. Guth-
rie Mr.. Flynn said his creditors got the $8ooooo
He borrowed 100000 from Kuhn, Loeb & Co
Odd you know your note has beer paid? A
I do not.
Odd you pay it? A.-No.
Q.-Don't you know that it was taken up by the
MstroRetan Securities G;fSmPany? ,oA;i.9ss9 A9ss
It was not
hon tI1e moi he asserted.
were made by Surrogate James c. Church of
Kings County, who his personal counsel
for several years and while he president
of the Nassau Railroad Company, Of Brooklyn
He showed his check book and stubs TO MI
Stickney who asked what one amount OF
S150,0O0 represented
Claims against me- the witness replied, 'that
is claims urged against me. We decided to pay
them and regard them as hlacRnail. one often
has to do that sort of thing in large enter
prises"
After recess counsel for the plaintiff an
nornced tnat the case for the plaintiff was
closed Mr.. Guthrie rested the plaintiffs
case and moved that the case be dismissed ne-
cause the plaintiff failed to prove his case be-
cause all the requirements of the railroad law
have been complied with because the interests
of the Na+ronoIitan stockholders were properly
nreserved under the Interurban lease and be-
couca no fraId actual or constructive, had oeen
shown. -.. ~ Mo-,
dax when counsel will submit briefs Jnstlce
scott made no ruling the motion to dismiss!