The evening world. [volume] (New York, N.Y.) 1887-1931, 1908-12-29
II" AND SUBWAY
MAY REVERT TO
AUGUST BELMONT
Judge Ray Rejects Demurrer
in Attack on Inter-Met
Merger.
MUST DEFEND ACTION.
If Continental Securities Suit
Holds Good Alliance
/. Is Dissolved.
MUST DEFEND ACTION.

Judge Ray. of the United States Cir
cuit Court, to-day handed down a de-
Eision overrulng the demurrer inter-
posed by the defendants in the suit
brought by the Continental Securities
company of New Jersey against the
s1nterboroush Rapid Transit Company.
gthe Metropolitan Street Railway Com
pany, the Metropolitan Securities Com
BPS ~. marlborough Metropolitan Com
spany, Windsor Trust Company New
SYurk City Railway Company, Thomas
;F. Ryan, August Belmont, Edward j
1Berwind John d. Crimm.ns, Andrew
STreednan, Thomas P. Fowler. Gardiner
Nj. Lane and Cornelius Vanderbilt
II The suit, which was brought by J.
, Aspinwall Hodge on behalf of the Con-
! tinental Securities Cor pany, of New
Jersey. alleged that the PETERBOROUGH
Metropolitan merger Is Illegal and asked
the court to restore the elevated and
subway to the marlborough Rapid Trai.-
sit Company.
n May Dissolve Inter.-Met
Mr.. Hodge says that the effect of
Judge Rays overrulng the demurrer
anu sustaining tHe
complaint would be to dissolve the Inte:-
Met, and to throw the elevated and
subway back to the old PETERBOROUGH
voting syndicate which August Bel.
mont formed.
Judge Rays opinion concluded:
If it be a defense. as to which l ex
press no opinion, that this vast COM
bination. affecting the population of the
city having some four million of people
and other millions of people who visit
the city for business or pleasure, taken
under one management and control all
its parallel and heretofore competing
lines, with their feeders, is a benefit to
the stockholders and the public. and
that no injury has resulted or can re-
suit, that defense may be pleaded and
the fact shown.
THE allegations of the bill are that
injury has resulted and must result:
that the rights of the public and of
many stockholders have been invaded
that the statutes of the State have
been and are being violated: that the
combination described is illegal and
Injurious.
"Concede the premises and we have
proper case for the interpos ition of
q court of equity. Whether the policy
expressed in the statutes be wise or
unwise is question with which the
courts have nothing to do. II is their
duty to ascertain the law, and when,
appealed TO, to decide its application"
4 "conspirlng Gentlemen"
The original complaint, which was en-
aclusively published in The Evening
World, sets out that the plaintiff is the
holder of 300 shares of stock in the old
31nterborough Rapid Transit Company;
that So per cent. of the Interborough
stock was In 1906 collected ny Mr.. Bel
mont and syndicate and pledged to
the Windsor Trust Company, to secure
an issue of collateral trust bonds by the
marlborough metropolitan.
The old marlborough stockholders
who went into the traction merger re-
ceived 1889 Inter- Met stock and bonds
for each 500 old lnterborough stock.
ferred to by Mr., Hodge in his brief as
''conspiring gentlemen" and the mer-
ger deal was, referred TO as con
his first success Mr.. Belmont will es-
cape from the clutches of Thomas F.
Ryan, together with his IL roads and
The defence has thirty days to pre-
pare It's next move In the fight. c. n.
.venner & Co.. OF Boston. the well
known litigant is understood to be the
interest named as the Continental Sc
curities Company of New Jersey
Forced to Answer Suit.
Mr., Hodge, in a statement TO Thu
Evening World, explained the force anc
effect OF Judge Rays decision as fol
lows:
In our complaint we charged certain
facts. Paul ID. Cravath, and the othe
lawyers for the defense demurred
claiming, first, that our facts were no.