New-York tribune., 1907-09-05
Calls ACTION CRIMINAL
vP IVINSiS OPINION.
roTe D. c. NOorehead Hes Lucky
He Can't Be Prosecuted.

-. Commissions inquiry into the inter-
- nIAtropoIitan merger. during the course
= -.h3cb he admitted that he was prooaoly
y - 7,rA.+or Of his company, that ne voted
lease IT for 900 years TO the lnterurnan street
-. . ,-or7panv-now the New York City
- Railway Company-because the men WHO
- as,orsfale for his appointment as direc-
,--;sred IL that he had sold the books OF the
.-ol;-an IN his own initiative. and that H
- ,--aaIard and others had usurped the powers
= .he executive board. William NJ wins. counsel
- the commission, remarked that II was wen
1T the witness was protected from criminal
acr+io7 by the witnesses immunity. clause
a +ba nubIic service act, for under provisions oI
.ra penal Code it seemed that he was open 10
s,cb prosecution otherwise.
pen1 n Cravath Of counsel for the merger
os m his feet in moment MI ChsiTrtlah
--o,.ir,aa excitedlv TO Commissioner Wilcox
81 demand that that remark be eXpunged from
-. record - "Oh. I am sure do not care about
l' .,- -, the record a" retorted Mr.. WINS,
ahn+ il is true. all the same The incident
-..l,e5 the climax of a trying day for MI
,,orebsad Mr. WINS also had a lively tilt with
W. o1,ackenbush Of cunsel. who apparently old
not think Nfr Noorehead had received square
deal"
Tho witness said that the books Of the Metro
,o1itsn had been sold to the Junk man for three
onar1ers Of a cent a pound, although they re-
oo-5aa transactions involving millions of dol
lars The Junk man. according TO MI Mooie
head voluntarily gave contract agreeing -
convert them into pulp" From MI iNiio
.,.s,ioDs was brought out the fact that the
hooks had been sold TO make room TOT iIuio
,ocen+ hut not as important documents Inc
,ri+ness said 100 shares OF Metropolitan slo'
had been entered in his name SO that ne might
% he
Is -o+ maid for the stock, and at that uhle
.:z ~ oz,-r7 2 single share of IL MI Moore
,oa5 actnoyzledged he had acted as director
18th on1,, the vasuest and slimmest knoWleoso
of +he affairs Of the railway company
..z-oTF FIRST. TALK AFTERWARD-
.,. c,,ee,ions nv Mr WINS brought out
49, =. tba meeting Of the stockholders TO raflfy
..o 1e.sA Mr. Widener. who presided. remarked:
..r+lar,an we will vote first and talk a1ter-
.,a And YOU voted f1rst?' asked MI. lVlhs-
y did replied Mr.. Moorehead-
--ouar5 the close Of the hearing Mr. Teale'
certified public accountant employed oy DlsIIioO
Attorney Jerome to investigate the books OF inc
,e+-onoliran Street Railway Company dt uio
-,-,s of the hearing Of the Arnory charges was
csua5 70 the stand. After few questions hao
ban asked the hearing was adjourned unul To-
asv Al . . m as the witness wanted ufhe 10
go ever his report on the books
v-ben tbe hearing opened Mr. Moorehead was
rallied 10 the stand He testified that he was
5,-ec-or If the Metropolitan Street Railway
-. - cha time of the execution Of the
1assa. that one hundred shares of the company
r+oc- had heen entered in his name that ne
might art as 2 director. He said that he knew
NJ The terms in the lease in only a general way
Later he said Il was true that by the terms
If the lease his company was 10 receive 49,
100000 and also a guarantee Of per cent on
its stock He said that the advfsability OF 'he
lease had been discussed and that 1t was SHOWN
that under the existing circumstances the Met
ropolitan Street Railway Company could not pay
per cent dividends on its stock
Nr Ivins referring to the testimony in the
worrnser case, asked the witness if he had not
testified then that all he knew about the Inter
urban company was that it owned very valu-
able franchises. a car barn and three or four
cars and that he had been informed that il
was operating three or four miles of tracks in
The Bronx That is true" said the witness
o-And ycu testified that $4,000 90 was II come
from the Metropolitan Securities Company, which
terms tern Of the lease? Al probably aid
rb6ro1eFIy; Hnst the terms between the Interurban
and the Metropolitan Securities Company were,
fo-roer, and tnat with no more knowledge than
that you voted for the lease-you director ana
ODD anv one tell YOU 10 vote for it? A-No.
Odd you read the lease2 Al am inclined 10
c-Did YOU read the agreement between the
Interurban and the Metropolitan Securities Com
paryt A-No, I don't think so
Q-And with further knowledge than you
have testified you voted in favor Of the lease?
Q-Now. as matter Of fact, have the very
valuable franchises of the Interurban ever been
exercised A-No-
Nj WINS then asked the witness about the
Widener remark Nobody talked afterward2"
asked Mr.. Wins. The witness replied that the
business was ended when the vote was taken.
taken
ACTING EXECUTIVE COMMITTEE.
Mr Moorehead testified that there was an
executive committee. but that its powers we're
probably usurped by Nessrs. Elkins. Wide
ner, Dolan and Vreeand. He next said that
he had probably voted for the lease because
il was 50 desired by those men and partly be
cause il his idea
Q.-what did you Go TO relieve yourself from the
cid nothing
9-You did nothing? A-Nothing
A--Probably
Mr Moorehead said he did not know how
many more dummy directors there were in the
BOARD He said that he could not say whether
Nr Freeland. Mr.. Hasbroucke, Mr.. Warren. MI
--'DN-SfA ana Aar Root bore the same reIatlon
Il TIE board as he did
The witness acknowledged that he testified
n the Wornser case that Kuhn. Loeb & Co.
nae guaranteed subscriptions to the entire issue
oa S3oooo0oo Of Metropolitan Securities Com
TanE stock in February. 1902 but that he did
-.oi know that the company had reserved the
flght 10 subscribe TO S6,6ooo0o OF the stock it
f'4e He said that entry had been made in
14s books cf pavnlent Of 81 100000 TO Kuhn.
Loeb & Co for underwriting the issue,
The entirr floating debt Of the Metropolitan