The sun. [volume] (New York [N.Y.]) 1833-1916, 1908-04-21

which wsre sent to him and Mr.. jerome
vas a witness 10 deny that William 81
WINS had ever laid before him charges
against the Metropolitan which ne Z
failed 70 cot on. Then the urand jury plSa
, into the Supreme Court and EdWaro y
ClddihV. the foreman handed the present.
mont 10 Clerk William Penney, who read u,
When the Grand Jury was organized In
Jannary. the presentment said. there wa
= Widespread belief that many persons
ConneotAd with financial institutions and
nnhHo saryios corporations had been guilty
N raw crimes. The Grand Jury invited
anV ono having Information Of such crimes
to present II In confidence, After golng
over the hole ground the Grand Jury says
n the hanks: -
the administration Of financial institutions
IN this county. Such crime OF this h
acter az the fury has learned OF seems TO
AVE been confined 10 q single group OF
persons acting together In the control or
management OF certain institutions well
known to have been dominated by such
The Grand Jury indicted Charles W,
Morse, Y. II, Thomas. o.. J. Thomas and
William r. Montgomery.
The grand jurors az individuals say lhat
lneX WtTo IUDINHHNu ~ ~
physieal and financial condition OF the
street railroads. There had bJcn 'the
~fiercest newspaper criticism ard CIV
lltikation and many persons had suffered
ssyere losses. The presentmenl says
sThe members of the Grand Jury, While
Determined 10 discharge their duties IN Q
judicial manner yet as individuals cOuld1
not but fell that the physical and hhahGial
destruction Of these properties was que
in no uncomfortable degree TO dlshohesl
and Drobablv criminal acts rather IMAM 20
mistakes Of judgment ana laVlsh OF IeVN-
less laundering
After a prolonged investigation I was
not able 10 obtain evidence on "hlch u
could act. As a result Of its invitation 70
Inc pnblic 10 produce evidence the Grand
Jury seems surprised that the Only persons
who came forward we're WI lam VI WINS
Herbert Limhurg, Paul Fuller trahN ~
Pierce. William y. Amory ana Nulanl /,
King and his committee. All these persons
were heard patiently, the presentment says
Some of tho jurors made a personal NUM-
for evidence Of crime.
In view Of the great public interest IN
the subject and is Importance the uTdhu
Jury decided that all the evidence pre-
scented 10 il should be made public 80 Ihat
any ono Interested could sce what had
been done. The ,irand Jury MED thrce
books. ono containing the Coinp ANTS, an
other the exhibits and IA third "A summary
az the complaints with the Grand Jurys
explanation why il had not acted. Also
All the testimony taken on Metropolitan
Affairs. making a book Of 1900 typewriter
RACES, was fled. -
After receiving il all Justice Bowling
said that he thought Il was the frst time
that Grand Jury inmates had been made
public except on the motion or Defendant
- aNaH a.. NnNNANNn nllNkH
was justified. The Grand Jury hAc ear
nestly and faithfully performed its dlt"S
without bias. An honest search had bees
made for the truth, and the Grand Jury
had done n good iob. Then he discharged
the Grand Jury from further service
As the Jurors marched out each OF them
shook hands with Justice Dow ling, which
ia not customary. Then they shook hands
with Mir. Jerome and Assistant Dlstrct
Attorney kresel. -
AS TO the charges made by William r,
King and his committee. the Grand Jury
decided that most Of them were too vague
and indefinite. The Metropolitan Securities
Company and the New York City Railway
never paid dividends out Of capital. Millions
Of dollars had not, "a alleged, been wasted
and charged 10 the construction account,
The charge that reports to the State Railroad
Commission were Intentionally misleading
and inaccurate was not correct,
The Grand Jury heard evidence on The
H.4OO.OOO of stock Of the Metropolitan
Securities Company which was taken
over by Kuhn, Loeb 4 Co, 1t was brought
out that in the summer Of 1903 his stock
was taken mp 10y Mr. Ryan at ~ and subae.
uuently il was acquired by the lnter-MSt
through the Metropolitan Securities Com
pany.
There is q bit Of history concerning a
lear raid Oh the stock Of the Metropolitan
Securities when the company bought in
some Of liz own stock. II appears that
QuiA scent I26,OOO which was advanced
by Yr, Ryan for the purpose OF finding
OUT WaS was behind the raid. II was
thougna that James Il. Keene wa behind II,
hut Mr Ryan told the Grand Jury that he
was wrong about that.
Certain disbursements made by Presl.
dent Nreeland were legitimate. the Grand
Jury held. because IL was customary for
n railroad president 10 have a petty cash
nocount which he used for the benefit
of the road without submitting vouchers.
As to the checks to A. A, Ryan \ Bro, they
were for legitimate brokerage fees. Ger
tain suits were settled by the company
because the officials thought IL would be
cheaper and better than TO fight them.
There was nothing wrong in the payment
Of slSO,OOO 10 John r.. Mcdonald to release
him from a subway contract.