New-York tribune., 1912-03-13
Committee Declares 1t Is Not
Affiliated with So-Called
StiIWeIl Interests.
UNTERMYER TO BE COUNSEL
Choice for Investigator of as Big
Foe of Money Trust as
Promoter of Line Himself
Amuses Wall Street.

bo sub,ected 70 an investigation, which Will
embrace also the many companies WITH
which the Stlwell management is no" Vi
has been identified within the last Few
years.
A committee was formed yesterday for
this purpose, and although II includes
number OF men who have been associated
with Mr. .Stllweil in the construction OF the
Orient road, II was interpreted to be nos
tile TO him. Wall Street. moreover noteu
with ironical amusement that its counsei
will be Samuel Untermyer, who mas peen
as severe a critic of the money trust re-
Gently as Mr.. Stilwell himself.
The committee now formed is composed
of five English and six American members
The chairman, Lord Monson, who is chair-
man of the London finance committee OF
the company, arrived in the United States
only a few days ago, in company with
several other Englshmen interested In the
fortunes of the Orient road, and his Eng
Ush associates are George A. Touche' NJ
p: Cecil Braithwaite. Granville Farquhar
and Frederick Hurdle, who has been IN
strumental in raising great sums for the
enterprise in Europe.
The American members of the committee
are Willard " King. president of the Co.
lumb!a Trust Company; L. f. Loree presi-
dent of the Delaware & Hudson Company;
H. =. Mcintosh, president of the Guardian
Savings and Trust Company: of Cleveland;
T. 2. Shonts, president of the INTERIOR
ough- Metropolitan Company. who is dl-
rector in the Orient company; 5. Dawes
Warfeld. president of the Continental Trust
Company. of Baltimore, and Harry Bron-
ner, Of Hallgarten & Co.
The official announcement Of the forma-
ton of this committee says that it is In
no way affiliated with the so-called Still
well interests"
Another Committee Forming.
II is understood that another committee
is in process of formation in the interest OF
the stockholders of the International ana
Union Construction companies, through
which the construction Of the Kansas City,
Mexico & Orient has been carried on.
The first meeting of the Monson commit
Zee was held Yesterday afternoon at the Of
fee of Mr. Untermyer and an extensive
programme of investigation was laid out, 1t
being decided to engage expert accountants
10 examine the books of the Kansas City, |
Mexico & Orient and of all the companies
directly or indirectly affiliated with 1t, in
cuding the United States and Mexico Trust
Company, and TO retain other experts to
make a physical valuation of the orient
road and other properties.
One Of the chief points Of inquiry by the
Monson committee will be the actual work
ing out of the arrangement between the
Orient road and the international Con-
structon Company which was formed TO
build that part Of the road extending from
Lone Wolf, Okla, 20 Topolobampo, now
Port Stillwell, Mexico, the construction OF
the line from Kansas City to Lone Wolf
being in the hands Of the Union Construc-
ton Company.
The International Construction Company, |
capital stock S10,000.0 900, was incorporated |
in Delaware in 1900, and is legalized under |
the laws of Mexico. The stock was placed |
in long-term voting trust and Mr. Still |
well was a voting trustee and also presi- |
dent. The company was TO receive from the
railway company $4,000 in first mortgage
per cent bonds, $4,000 preferred stock
and S12,500 common stock a mile and all
subsidies receivable by the railway COM
pany on the completion of each section of
ten miles. 1t was also TO receive 81 10000
in bonds for heavy work in the Sierra
Madre and all subsidies by the Mexican
government, all bonds given by states and
municipalities in Mexico and Texas and
such subsidies as might be given bv indi-
viduals.
Mexican Bonds Received.
in 1904 the company had received Mexican
subsidies as follows Three million dollars
per cent Mexican government bonds of the
redeemable interior debt, for mountain
Tod
kilometre for the portion west of the noun
tains. 100000 State of Chihuahua per cent
bonds. estimated to increase to S1,06oOOO."
and 10000 State of Sinaloa per cent
bonds, increase expected"
The construction company was also an
nounced to hold at that time 100000 capt.
tai stock of the Chihuahua e. Sinaloa De-
velopment Company, which was said to
have an interest in 100 mining prospects;
stock OF. the Mexican Timber Fields Com
pany, a two-thirds interest in all of the
tswn sites along the line of the railway
the entire capital stock of the Sierra Madre
Development Company and the right to
acquire coal and oil rights.
The United States and Mexican Trust
Company. which is the fiscal agent Of the
Kansas City,, Mexico Orient road and
also the trustee of its first mortgage bonds.
removed its headquarters from Kansas City
TO New York about two years ago. but has
no charter to do business in this state, and
perhaps for that reason is not mentioned
in the Directory Of Directors or the
Trust Companies of the United States"
II Is represented here by the Metropolis
Finance Company.
A Deputy Attorney General appeared be-
fore Justice Blur In December 10 ask for
a continuance Of an injunction which had
been obtained restraining the United States
and Mexican Trust Company from operat-
ing In this state without charter. adding
that on the door of it's office in the Singer
Building was lettering which represented
that II was doing business here through
the Metropolis Trust Company, a corpora
tion which he declared was non-existent. as
its charter. granted in 1895, had provided
that It must begin business within two
years.
Finance Company Organized
The injunction was later sustained, and
then the Metropolis Finance Company was
organized, which now represents the United
States and Mexican Trust Company here.
TIE state authorities proceeded against the
france company, but without success, in
the lower court. and the Attorney General
has taken an appeal.
fhe United States and Mexican Trust
Company, OF which Mr. stilwell is presl-
dent. has offered the securities OF varied
line OF enterprises in addition 10 the Kan
sas city, Mexico & Orient road. Among
these is the Florida Pecan Endowment