The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-05-09
MENGIS'S SUIT FOR MILLION.
ARGUMENT ON APPEAL BEGUN
ny ELIHU moor ~ RROOKLYN.

lie Refers 20 MengiS, VINO Obtained a
verdict Against Louis Fitzgerald OF
the Mercantile Trust Co.. a. an Ad.
yenturer VINO Had Failed Frequently
Morris c. Mengis's million dollar lawsuit
against Louis Fitzgerald, president Of the
Mercantile Trust Company. which was
won by Mengis in June, 1904 in a verdict
for the full amount plus 3il2, $40, accrued
interest, was argued again yesterday In
the Appellate Division Of the Supreme
Court, Brooklyn, by Eihu Root. repre-
senting Fitzgerald, and Thomas +, Wagner,
representing Mengis.
The enormous verdict for breach OF con-
tract which Mengis won was based on an
alleged agreement between Mengis and
Fitzgerald with reference TO the sale Of the
Western Maryland Railroad. "A appeared
at the first trial Of the case, Mengis, in the
capacity Of a promoter. came TO Mr.. Fitz-
gerald in January 1901. with a proposition
for the purchase Of a railroad under certain
specified conditions. These conditions
seemed to be very attractive and interested
Fitzgerald and he asked what Mengis
expected to get out Of the transaction
himself.
Mengis demanded a million dollars and
according TO the testimony there was a
verbal contract whereby Fitzgerald argeed
to give MenRis 81. 0Oo, 900 provided he went
into the railroad purchase with Mengis,
and to give Mengis 81 900, 900 II he went into
the investment with anybody else. Up 10
the time this verbal contract was made,
Mengis had not told Fitzgerald the name
Of the railroad in question, describing II
only az "a railroad in one Of the Middle
States
When Fitzgerald agreed 70 give Mengis
the million dollars under the conditions
named, then, according 70 the testimony,
Mengis revealed 10 Fitzgerald the name OF
the road in question and scheme in con-
nection with II whereby a great deal Of
money could be made.
The Western Maryland Railroad is line
ninety-two miles In length with 200 miles
more Of leased lines. It ended sbortively
at a point some distance from Baltimore
and as it stood was not Of much worth
Connected, however with another line to
the west OF 1.-THE West Virginia and Pitts
burR-it became pregnant with important
possibilities.
Mr.. Gould, Il was well known. was anxious
TO get TO the Atlantic Ocean with his Wabash
system. He had got as far as PittsburR
and anybody with these West Virginia and
Pittsburg and Western Maryland links
would be in a way TO show Mr.. Gould road
for his Wabash trains TO the Atlantic Ocean
by way Of Baltimore.
The Western Maryland road was owned
almost entirely by the city Of Baltimore,
and the information which Mengis had to
give Fitzgerald was that Mayor Hayes Of
Baltimore was secretly determined on
two things with reference TO the Western
MARYLAND Railroad One was that the city
OF Baltimore was going to sell the road,
and the other was that the road was going
10 be sold. when il was sold, TO some indie
pendent company and that the Pennsylvania
the Baltimore and Ohio and the Phila-
delphia and Reading were not going TO
get hold OF IL.
All this information and the West Virginia
and Pittsburg- Wabash scheme were the
wares which Mengis brought 20 President
Fitzgerald Of the Mercantile Trust COM
pany, and which, according TO the tesu,
mong of Mengis. Edward Lauterbach and
others, Mengfs only parted with TO Fitz,
gerald on the agreement that II fltzeeralu
went into the purchase Of the road, ether
with or without Mengis, Mengis was TO get
the sum Of 81 100000.
According to the testimony, the dickering
and investigating over the transaction
employed Stephen Little, public account
ant. and Richard Tibbitts, lawyer OF high
standing at the Baltimore bar, and through
their assistance all the facts and figures
with reference TO the Western Maryland
Railroad were laid before Mr. Fitzgerald.
The upshot Of Il all was that Mr.. f1tZ-
gerald refused to 70 into the matter with
Mengis. Not long after this, however
a syndicate was formed consisting OF j.
II. Hyde, Louis Fitzgerald, president g, OF
the Mercantile Trust Company; AVN W,
Kneoh, vice-president Of the Mercantile
Trust Company: George j. Gould, Edward
Fuller and a number Of others, and THIS
syndicate bought the West Virginia and
Pittsburg line, as we'll as the Western
Then il was that Mr.. Mengis brought
suit against Mr.. Fitzgerald. which was
tried before Judge Spencer and a jury IN
June last, with the result that Mengis got
a verdict Of Sl,112,5i0. The case was I'M
mediately taken up TO the Appellate Divi-
sion. and argument, which began yester-
day, will be resumed this afternoon. Mr.
Root, representing Mr.. Fitzgerald, out
lined the story OF the Western Maryland
transaction, describing Mr.. Mengis a. an
adyenturer who had failed In the hotel
business, failed in the horseraoing bust
ness, had judgments against him and neither
had any interest himself In the western
MARYLAND Railroad nor represented any
body who had such interest.
Nj. Root said that Mr.. Fitzgerald had
declined 70 go into the matter with mere
promoter and that there the matter had
dropped until a long time after Edward
Fuller formed a syndicate In which Mr.
fitzgerald subscribed $4,000. This syn
dicate did acquire the Western Maryland
Railroad as well as the West Virginia and
Pttsburg line.
Mr.. Root argued that the verbal agree
ment with Mengis ON the part Of Fitz;
gerald was twofold-to do something and
not 70 do something. Fitzgerald agreed
10 see that Mengis got a million dollars II
i. Nyt.oor.id acfad With him in tha nur-