New-York tribune., 1910-01-26
DECRY FINANCE"
Sharp Words in Suit of Ne5C
York City Rail1coy Company.

Terms such as shell game "thimble-
rigging game Thigh finance" and so on
were used in the continuation OF argumen.
Of counsel yesterday in the suit brought BY
w ". Ladd, as receiver of the New York
CITY Railway Company. against the Metro
politan Securities Company and Its direc-
tors. TO recover s77e7.ooo alleged to have
been v-rnngfully transferred from the rail-
way company to the securities company.
Matthew C. Fleming. one of the counsel
for the receiver opened: he was followed by
ex-Judge Alton 3. Parker for Peter a. T.
widener and the hearing was closed by
Joseph H. Choste. who appeared for the
plaintiff.
Mr. Fleming took UP the insistment OF the
counsel for the defence that the trsnsac-
ton. whereby debenture notes were issued
by the railway company TO the Metropolitan
Securities Company at 90. and almost i'm
mediately redeemed at par. was a payment
of debt In due course Of business and legal
in every way. and said that 1t was an ex-
ample Of high finance and high nnatheuat-
les. He continued:
This might he compared 70 the little
scheme known as the shell game operated
to separate the innocent countrynlan from
his money In that game three shells are
used. and the little pea is manipulated un-
der them and the countryman is induced m
tell under which she'll the pea is. In this
case the three shells may he said to repre-
sent the Metropolitan Street Railway Com
pany, the security company and the COM
pany of which Mr.. Ladd is receiver. The
only difference is that the creditor has ~
put his money under the New York City
Railway shell. and when he looks under II
for his money It isn't there. but under one
of the other shells
IF I were familiar with the thimble
rigging game I might have used that illus
tration myself said Francis I.ynde Stet-
son. counsel for the defendants.
Judge Parker, for Mr.. WideneT. said that
the latter was not director of the Sc
curities company when the first batch OF
debentures was redeemed. He said that
there could be no doubt in the mind of any
one that the sole purpose of the organiza-
tion of the New York City Railway Com
pany and the securities company was 10
get money to finance the Metropolitan
Street Railway Company until such time
as 1t could stand alone. He declared that
the whole transaction showed good faith
and belief in the ultimate success of the
enterprise
Mr.. Choate. In opening for Mr. Ladd,
said that he believed it was Nine Roland
who said on the way to the guillotine:
'Oh. Liberty What crimes are commit
ted in thy naner' and he declared that
the creditors of the New York City Rail-
way Company. the widows and orphans
left shivering in the wind, might well say:
"Oh fnancei What crimes are committed
in thy namer'
The whole transaction" Mr.. Choats
added. was unlawful. and I won't disturb
the defendants here by going TO the penal
code. which might characterize it as being
in the category OF crime. If YOU are going
to allow such transactions to escape the
scrutiny and criticisms OF the court be-
cause they have surrounded it with dou-
ble-barrelled corporation you will disap-
point all of those who still believe In the
fundamental msxinls of equity jurispru-
dence"
Judge Ray then asked for the briefs with
In two weeks. and the hearing was closed.