New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-05-07
In Effort to Bull the Market
1907 New Haven Shares
Changed Hands.
STOCK JUGGLING
Barred AT HEARING
Dummy Didn't Know What the
Checks Were FOr-Got SO
Day for Services.
From The Tribune Bureau

Commissioner McChord at the hearing
on the New Haven Railroad to-day 'hat
the Billiard Company had purchaseu
13007 shares Of the New Haven kall-
road stock from the New England Navi-
cation Company. q subsidiary corpora
,ion when the stock was selling at lS5
and later turned il back TO the naviga-
ton company at the same price. al
though its market value was only i"'17'
President Mellen Of the New haven
Railroad, MIR. Hemingway declared
wanted 10 boom the stock and made
verbal agreement with the Billiard Com
many 10 take over a block of II. prom
Using they would not lose anything by
the transaction.
The scheme did not prove successful
the witness said and the market kept
going down When il reached l3i z the
Billiard Company turned the stock back
10 the New England Navigation Com
pany at 1853
Not alone the original 1907 shares
Of stock but 200 shares in addition
which. the witness said, had been ac-
cumulated in the transaction, were re-
turned to the navigation company at
i53. Mr. Hemingway said the Billiard
Company had given its note for TINS
stock. but that the note was not secured
The navigation company, he added
wished 10 reduce its holdings of New
Haven stock also.
Commissioner McChord asked who
would have taken the profit had the stock
gone 10 175 Mr.. Hemingway said he did
not know. and added that ne did not
think that the Billiard Company would
have kept IL.
hazy About S1,50o.o00 Check.
Mr.. Hemingway had a hazy recollection
Of signing a check for sl.5C.co He SAID
i, was the result of a loan from the
Farmers Loan and Trust Company. OF
New York. and that when he signed IL ne
knew that il was to be loaned to some
one else. but he could not remember the
name Of the company. He explained That
he was merely acting as dummy ana
that he did not give the transaction par
ticular attention.
Replving TO a question whether the
Billiard Company had ever paid any
money to mould public opinion through
the ownership of stock in newspapers
Mr.. Hemingway said that the company
had 10000 or more invested in a New
England newspaper, but ne did not tell
the name of the paper.
Warren d. Chase. who described him
self as a New Haven business man and
lawyer. and Grover c. Richards. of Port
land, Me, a clerk. who had ac,ed as
dummy in the Metropolitan Steamship
transaction. and who had been mali
isnaire for a minute, were the other Ne"
Haven witnesses.
Mn. Chase declined 10 answer many
questions on the ground that they con-
cerned the confidential relations between
a lawyer and his client. When the hear
ing closed Commissioner McChord in
formed him that he would give him until
1880 tomorrow morning TO refresh his
memory.
Mr.. Chase said he organized the Metro
politan Steamship Company of New Jer-
sey for +. d. Robbins, general counsel
for the New Haven Railroad. He said
that everything he had done was by or
der Of Mr.. Robbins He could not recall
who gave his the s3,OO0,OO0 which was
placed on deposit to make good two
checks Richards had signed as treas
urer" of the Metropolitan Steamship
Company.
Mr. Chase also organized the Chilmark
roupany. he said. II held 1880 shares
~ the Metropolitan Steamship Company.
He said that 81 10000 was paid by check
for this stock, but that the transaction
had been consummated through Douglas
Nicholson. of New YORK.
The Chilmark Company held all the
stock of the Metropolitan Steamship
Company. with the exception OF ."
shares. which were held by Charles w.
Morse. These he characterized as having
n nuisance" value. and explained that
The holders Of these shares had spent
more than twice their value in litigation
IN the New Jersey courts.
Mr.. Richards is twentysix years old.
He said he was in the contracting ousi-
ness in Maine and handled between $500
and g 900 a year, but he could not remem-
her when he signed one check for N,45O.-
On. and another check for H,5D,0o, or
who was present at the time He had
hazy recollection, he said, of meeting
three men in the Manhattan Bank, OF
New York, on March 5. 1910. He thought
they were Mr.. Hemingway, Mr.. BILLIARD
and Mr.. Robbins. After signing the
checks he received check for S,Ooc.oU TO
denos,t. He said he just signed the first
Two checks without knowing what it was
al about. but thought the money was 10
no used to buy Metropolitan Steamship
s,ock He said he was the original treas
,rar Of the Metropolitan Steamship Com
many Of New Jersey, although the only
money ne ever handled was about 500,
which he received in payment for his ser
vices
Mr.. Richards also said he had Endorsed
9 check for $4,000. and had given it 10
Mr. Chase He said it was signed by Mr..
Hemingway. Mr.. Chase later denied any
knowledge OF this check.
David f. Brown, an examiner OF &C
counts for the Commission. spent good
deal of time in the examination Of the &C
counts of the New Haven Railroad Com
many One Of the things. he said on the
stand was that Dennis \. Cohalan,
New York lawyer, had received retainer
NJ 50. 800 for the year of 1913.
Homer S. Cummings, counsel Tor MI.
billiard. said he would produce his client
Tomorrow morning. Mr.. Billiard was eN-
pected 10 testify to-day. but Mr.. cum
mings said he was ILL.,
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