The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-05-08
MORSE SAYS HE WILL
SUE THE NEW HAVEN
Will Ask for S1O,5OO,OOO, Al
lcging Wreck of Metropoli-
tan Steamship Line.
TO SEEK TRIPLE DAMAGES
Minority Stockholders Are En-
titled to Receivership,
Banker Declares.


In a statement to THE Sun yesterday
Charles w. Morse said that he expects to
begin an action to compel the officials
Of the New Haven railroad. who he al
leges were responsible for wrecklng the
Metropolitan Steamship Company. to pay
S10.5O0.0O0 damages to the stockholders
OF the Metropolitan.
This amount represents three times the
value Of the Metropolitan lines $1,000
900 property. or 100000. and three
times the profts Of S1,5oo,ooo for three
years earned by the steamers Yale and
Harvard before they were sent to the
Pacific coast three years ago under char
ter to the Pacific Navigation Company.
Under the law the Metropolitan stock
holders are entitled to collect triple dam
ages for any loss they can prove has been
caused by the acts OF the New Haven
interests In removing the two big passen-
ger boats Of the Metropolitan from COM
petition with the New Haven in the traf-
fic to Boston. The control OF the Met
ropolitan passed 10 the New Haven in
terests In 1910.
Mr.. Morse talked with a SUN repre-
sentative concerning the testimony al
ready given In the suit brought. upon
his advice. BY his sister. Miss Jennie Il.
Morse. who has owned 100 shares OF the
original Metropolitan stock since the
company was organized by Mr.. Morse The
suit is pending in the Court OF Chancery
of New Jersey. and commissioner has
Ia YORK;
Boston and New Haven.
rrior to the hearings conducted by the
Interstate Commerce Commission into the
New Havens finances witnesses sum
moned in Miss Morse's suit had given
sufficient evidence TO lead minority stock
holders to believe that the wrecking OF
the Metropolitan had been traced 20 the
New Haven interests.
Trace Makers Of Checks.
Counsel for Miss Morse had found the
checks which passed when the majority
stock OF the Metropolitan line went 10
the $4,000 Chilmark Company, con
Germ with dummy directors. who admitted
that they had acted at the request OF a
lawyer alleged TO be in the employ OF the
New Haven road. Miss Morse's attorneys
are now trying TO trace the makers OF
the checks and the source OF the funds
with which the checks were paid. and have
been examining the books OF the Bank OF
the Manhattan Company, the Farmers
Loan and Trust Company. and the Ma
tional Bank of Commerce.
In their search for evidence MISS
Morse's attorneys received unexpected AS
sistance from the witnesses called before
the Interstate Commerce Commission or
Wednesday, when Warren II. Chase. q
New Haven lawyer. admitted that hs
formed the new Metropolitan Steamship
Company under the direction OF Edward
n. Robbins. general counsel for the New
Haven railroad. Mr.. Chase SISTED that
the taking over of tn. Metropolitan was
"A personal enterprise OF Mr.. Robbins's
Concerning this testimony and the evi'
dencc already brought out in Miss Morse
receivcrship suit Mr.. Morse said yester-
day;
The evidence already brought out Is
sufficient TO warrant a judgment In favor
Of the minority stockholders of the Met
ropolitan for a rece.vership. and the New
Haven officials understand IL The onl,
reason they won't consent to the appoint
ment OF q receiver without further cour'
proceedings is that they know an honest
unbiased men will be appointed receiver
and that one OF the first things he vii
| do will be TO bring suit for damages
/ ing the Metropolitan. The property wai
worth $1,000. 900 when the New Haver
Company obtained II. and was making
the Yale and Harvard earn 100000 ;
month.
Under ordinary circumstances tn,
profit would he $500 900 year. ant
since three years elapsed between TN
time when the New Haven took contro
! and the minority stockholders suit wa
! brought the judgment would include thre
times the estimated profits for thos
years. In addition TO triple damages 70
the wasting OF the 100000 assets.
Small PROFITS In ships Now.
THE Yale and Harvard are earning
scarcely anything now They We're lease
by the New Haven company TO Wester,
promoters who merely agreed to pay tn
interest on the outstanding bonds. o