New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-05-26
DUMMY COMPANY
AIDED MELLEN DEAL
organized to Gain Control
of Steamship Line, Is
Testimony.
TWO STENOGRAPHERS
WERE PRESIDENTS
clerk Acted as Treasurer and
Stoned Two Checks, Aggregat-
inc S3.000.000.

,.,siat,ors Of that presto change
...,cs which has made Charles s. Mel
-, former president OF the New Haven.
,.r,oys filed the proceedings with COM
"a. Yesterday at the New York County
1swvers' Association, in the hearing of
-. suit brought by Miss Jennie Morse,
.ls,.r Of Charles W. Morse. against the
w Haven Railroad for the appoint
-, Of a receiver for the Metropolitan
steamship Company.
George 3. Mcintosh. the witness ex-
.r,i,sd yesterday before Nicholas W.
v,,6seu. commissioner appointed by the
sppreme Court OF New Jersey. TO take
testimony in the action. told the story OF
sor dummy corporation, with young
,oran stenographer for dummy presi-
AN, and himself for dummy treasurer
,,d secretary was organized to put
,sropeh single $4,000 deal in an
,ctual working existence Of few days.
The suit was fled December 5, 1912 at
Newark. by Miss Morse as representa-
rye minority stakeholder in the Metro
oolitan Steamship Company. The chief
allegation is that after the New Haven
,,,erests got control OF the Metropolitan
Steamship Company through the dummy
New England Securities Company, organ
Ted for that sole purpose. the steamship
company was stripped OF its property.
Among this property were the steamers
Yale and Harvard. which were sold to a
Pacific Coast company
ITS alleged that this operation was
psrt OF the msnipulations whereby Mellen
trnt up complete monopoly OF the
passenger and freight traffic water lines
between New York and Boston. An
rulment Of the transactions and restitu-
ton Of the Yale and Harvard and other
property OF the Metropolitan Company are
sought. Mr.. Mellen will be examined in
the action Thursday morning in New
haven.
Mcintosh. who was a clerk IN The Office
Of EVERY VI. Davis, O. lawyer at 90 Wall
st. said that he had acted under direc-
ions from Warren %. Chase. of Hart
ford a lawyer allied with Mellen and
John l.. Billiard.
a few days after the organiza tion Of
the Securities Company he said, Mr..
Chase handed me two checks he had
drawn aggregating 100000. and asked me
70 sign them as treasurer OF the New
England Securities Company
He told how he fled a report with the
Secretary of State Of New Jersey show
ing the condition of the company, after
receiving the report by mail from Chase.
II was signed by B. r. Liebson, az presi-
dent
This 3. r Liebson-I suppose he was
a new PRESIDENT" asked Mr.. McCarter.
ooh. that is a her too" replied McIn-
fosh with a laugh she was the stenog-
rapher who took Miss Mann's place. 7
suggested her for president, when the
question Of signing the report came up.
We had had no president for year and a
half then. We got along all right with
out one"
The two big checks were drawn April 8,
1910 The next time Mcintosh saw them,
he testified. was a year later when he
went 10 the bank to wind up the affairs
Of the dummy corporation. He could not
remember the name OF the bank on which
y was drawn.
He was tod, he said, IL was the bal
ance on the purchase price OF stock. but
ne didn't know what stock. He said he
was paid $50 or s3Oo-he didn't remember
which-for his services as treasurer out
Of the $500.
Asked when he saw Mr. Chase last. Nc
lntosh replied: I'VE went to luncheon to-
gether last Thursday"
did Mr.. Chase refresh your memory
as 10 the place where you got the 5000
check?" asked Mr.. McCarter.
NO" the witness replied. ~ asked
him. and he laughed at me, and told me
TO testify TO the things / remembered and
leave the rest to him
The next hearing will be held Wednes-
day morning at 10 o'clock in the New
York County Lawyers Association.