The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-06-19
METROPOLITAN FRAUD TALK
WITH A "BLACKMAIL" EPISODE
FROM P. III. FLYNN'S MEMORY.
Relevancy to Wormser Suit Not Shown
Mr.. Guthrie Resents and Justice Scott
tests At Mr.. stickney's Theory Of I'M
conscious Fraud-Msti0n TO Dismiss.

pany was on Yesterday before Justice Scott.
Ever since the trial began Mr..
stickney and Mr.. Pendleton for the
plaintiff have wanted to get the tes-
timony Of Mr.. Flynn about check for
/ 100000 Mr.. Flynn received from Kuhn
Loeb d Co. in January, 1902. They knew
| that most OF the properties now owned
J by the Interurban company had been owned
| by Mr.. Flynn. They took 1t for granted
! that the 500, 900 check had something to
do with the formation Of the 1nterurban
company. The attorneys for the plaintih
were practically sure Of this when they
found that the check had got into the pos
session Of the Metropolitan Securities
Company, together with a note given by
Flynn to secure the note. Mr.. Flynn WAS
questioned yesterday about this TRANSACT
ton.
Q. You were interested in the formation
OF the Interurban company? A. No. had
nothing to do with that company
O. Didn't you receive a check from Kuhn,
Loeb 4 Co. for 100000 in january. 1922!
A. Yes.
O. Didn't you give as security for that
note certain surface railroad properties IN
The Bronx? A. Yes.
o. Wasn't that money given to you In pay
those companies? A. Oh. no. owed some
folks and they wanted their money. They
wanted il 40 badly that they convinced me
that I'd have to raise it. My lawyer. James
C. Church. arranged with Kuhn. Loeb 4 Co.
to lend me s2Oo.Ooo. | got the money and
paid my debts
Q. Do you keep any books' A. Oh. yes
O. Will you produce as soon as possble tho
books that will show the details Of this trans
Iva m
and bank book.
Q. Are those the only books you have that
will show about this? A. Yes.
Mr.. Stickney's face assumed q rather
hopeless expression and finally he asked
If the witness knew the note had been paid
NO." said Mr.. Flynn. his face lighting
up.
-You don't say so. Who paid II? l
never had anything like that happen to me
before
Mr.. Guthrie came to the rescue and ex-
planned that the note had not been paid.
but had been transferred to the Metropoli-
tan Securities Company by Kuhn. Loeb 4
Co. The witness was asked If he knew Of
the transfer, and he replied that he had
never heard OF 1t before
Mr.. Stickney asked. without any apparent
relevancy to the case at bar:
Any more claims against you about that
timc?"
-Oh, yes" said Mr. Flynn. About
$4,000 worth which l did not regard as
claims at all. considered them hold-ups
or blackmail. But on consultation with
my lawyer decided to pay them. Some
times on large enterprises We have to SUBJ
nit to such things
1t was decided that this was irrelevant
the subject was dropped and Mr.. Flynn
departed.
Mr.. stickney sought 10 offer proof
regarding the finances of the leased
lines OF the Metropolitan. Justice
Scott said that he could not see , how the
to have Mr.. Stickney inform him. Reply
Eve understand the situation TO be,
your Honor. that the assets Of the leased
lines werc not highly regarded by the Metro
taken into account until this lease came up
and then they were represented as one
OF the terrible burdens OF the Metropolitan
company. / am not willing to say at this
time, and hope shall not be obliged ever
to say that the gentlemen who have acted
in an advisory capacity to the Metropolitan
company, men Of the standing and char.
acter of Mr. Whitney and Mr.. Ryan, have
been guilty OF even constructive fraud.
I say hone ] shall not be obliged to say
| that.
Il prefer. rather. to believe, as do, that
! in their enthusiastic devotion to their own
| interests, they were carried OF their feet
| by this dream of a new Golconda mine
| and turned the magnificent properties
pany the no Re sset pspsr mill nHm Of
the Metropolitan Securities, Company.
Nothing like this financial legerdenain
has ever been known before in the annals
| Of this State"
time" said Justice Scott, TO express any
| opinion OF this case, but i may say that.
should find that any one connected with
the Metropolitan company has been guilty
| of fraud, even those acting only In an ad-
yisory capacity and ID no! even directors OF
telligence TO the extent of concluding that
they did not know exactly what they were
doing"
Indeed. your Honor" exclaimed Mr..
Stickney. they were past masters In their
art.
Il submit, your Honor" said W. p.
Guthrie for the defence, jumping to his
feet, "that the remarks Of counsel are
neither fair nor right, After conoeding,
at the very beginning OF this case. that 4
hardly seems to me that 1t is legitimate
| practice to come into the temple Of justice
in search Of truth and try to find it by trap
| or device
Does the gentleman mean to say that
| We have resorted to traps and trickery?'
| fairly shouted Mr. Stickney, as he sprang
| to his feet. AS for the gentleman's in
| sin uation, care not that Snaps his fn gersl;
| it does not hurt me particle. But for the
sake Of his own dignity, say to him that
he would better withdraw his words.
Mr. Gu.nrie wasn't moved to take back
anything and the Court excluded the test
mony after telling the lawyers that he
| hoped no blood would be shed.
After recess the defence announced
that it would rest on the plaintiffs case.
| Mr.. Guthrie moved to dismiss the COM
! plant, first, because the plaintiff failed to
prove his case; second, because all the re-
auirements Of the railroad law have been
complied with; third that the interests
of the Metropolitan stockholders were
properly preserved under the Interurban
lease, and fourth, that no fraud actual or
constructive, has been shown. Argu lent
on this motion will be heard on Monday.
DEADWIFE WAS MABEL MERZIER.
Desth Notice Reveals Her Marriage to ".
Wheeler he Forest.