New-York tribune., 1908-03-21
TRACTION MEN SUED.
Metropolitan Stockholders Backed
bu EiUr TO7p,ujfteP

August Belmont the witness stand in the
5th District Municipal Court. Broadway and ssth
street, yesterday. in suit for damages, which al
though of comparative insignifcance in itself. is
being fought vigorously by the defendants because
Of the precedent which II seeks establish.
The defendants Edward J. Berwind, Herbert
II. Ereeland. Mortimer l. Schiff, Thomas F. Ryan.
Peter A g. Widener Thomas Dolan and August Bel
mont. who assisted in the organization of the
Metropolitan Street Railway Company, and
alleged in the complaint TO have been possessed of
power in that and succeeding companies
Samuel We'll holder Of ten shares of the stock
OF the Metropolitan Street Railway Company sues
10 recover $50, the difference between what he
could sell his stock for and par. which he
declares he could have realized for the stock had
st not been for the alleged false annual statements
Of the company. Minnie Weller. holder of a few
shares. is bringing similar suit in the
II the precedent should be established that hold
OF Metropolitan stock could recover their losses
from the promoters and directors of the company,
hundreds Of suits probably would be brought
The complaint in the We'll case alleges that the
defendants caused numerous false and untrue
statements to be made as to the financial condition
Of the company. and that he. relying the repre-
sentations Of the defendants rejected offers 800
q share for holdings Reports of 1902 1906
cited As showing that the companys stock was de-
clared to have a value in excess Of 500 a share.
These statements it is alleged, made 10 cover
transactions by which large were extracted
from the company
August Belmont testified the organization of
the ACKNOWLEDGEMENTS company. He said
he did not investigate personally the figures in the
statement regarding the condition of the Metro
poIitan Street Railway Company at that time.
Counsel for Mr. Belmont said that counsel for the
plafntifs were trying 10 hold Mr.. Belmont re-
sponsibe for things Of which he could not be eX-
,ected TO have detailed knowledge. Mr. Belmont
said he had accepted the statements OF oflcers
Of the company and appended mis- name to them.
believing the statements regarding the Metropolitan
were correct
Anrhouy y. Brady on the stand for rev
minutes to Identify some documents. 1t was SAID
that he and Mr.. Belmont might be called again
Subncpna servers have failed TO find Thomas r.
RYAN. Other men prominent In the traction sys-
TEN are 20 be called. The was adjourned until
10 2 N on Wednesday. Eugene G. kremer' one
of the counsel of the stockholders protective COM
r1ittee Of the Metropolitan Street Railway Com
many is counsel FOR the plaintiffs.
NJ Kremer said last night that both his clients
are subscribers the Metropolitan minority stock
holders agreement and that their case Is being
hacked bv the minority stockholders committee,
Of which William r. King is the head
Asked why suit was directed against certain
Of the defendants, particularly those who were not
even directors Of the Metropolitan, Mr. hrenler SAID
that he could not give the information, as his case
was not sufficiently advanced