The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-03
DUMMY" DIRECTORS
SWING MORSE DEAL
One Admits in Suit Aimed at
New Haven That lie Sent
ships to Pacific.
OBEYED ORDER. HE SAYS
ChiImark Company, Controlling
Metropolitan Line. Mys-
terry to It's Officers.

The Cnilmark Company. a $50.000 cor
poration whose three directors say that
they don't know what the company was
organized for or what its business is and
who haven't attended directors meet
ing since october. 1910, is now the owner
of s1,437,50O of the $1,000. 600 capital stock
of the metropolitan steamship Company
of New Jersey
The Metropolitan company's chief assets
are the steamers Yale and Harvard, built
for the passenger traffic between New
York and Boston but leased to a company
operating on the Pacific coast after the
rhllmarls Company bought all but 500 OF
the | o. 900 shares OF stock.
These facts were brought out yesterday
at the examination Of witnesses In behalf
OF Miss Jennie II. Morse. sister OF Charles
W. Morse, in her suit In the Court OF
Chancery OF New Jersey for the appoint
ment OF receiver for the Metropolitan
Steamship Company.
Alleges New Haven Control.
Miss Morse asks for the receiver on the
ground that agents of the New York.
New Haven and Hartford Railroad Conn
pany bought control Of the steamship COM
pany so that the lease could be executed
by which the Yale and Harvard would be
removed from competition in the passen-
ger business between New York and
Boston.
Charles :. Melien. ex-president Of tho
New Haven, is wanted as witness. but
process servers have not been found.
Thomas b. Mc(iovern, who put through
the deal by which the Yale and Harvard
we're sent to the Pacific coast, testified at
the hearing yesterday that he first tried
to sell the property TO the New Haven
Railroad in 1909. after he had failed TO
complete deal with Charles W. Morse as
a result Of the panic Of 1901 In the be-
ginning he wanted to sell only the COM
pany's freight boats and the India
wharves in Boston Early in 1909 he met
Mellen +. -. Robbins. general counsel for
the New Haven Lewis Csss Ledyard and
other directors ~ the New Haven.
II explained to Mr.. Mellen that we had
the properties for sale through the Assets
Realization Company" said Mr.. McGov-
ern and asked II he would buy them. He
said The proposition seems 10 he a good
one After considera BILE NEGOTIATIONS Mr..
Robbins seemed 10 have the las; word.
MIR. Robbins said: Wait a moment we
had better look into this thing Mr.. Mel
len had told Mr.. Robbins TO prepare a
letter of acceptance OF my terms from
the New Haven company. and that was
the last time saw Mr.. Mellen on the
matter"
Charge Trick In Me1ien Letter.
lfr McGovern said that after all the
details had been outlined TO Mr.. Rob
bins President Mellen wrote letter for
mally withdrawing from the negotiations
on behalf OF IN" New Haven railroad.
II is the contention OF Miss Morse's at
torneys that tn. letter was written only
for the purposes OF record II a charg"
Of violating Of the sherman law was
ever made. ard that II was written after
Robbins had arranged a plan 20 buy the
Metropolitan for the New Haven in such
manner that it would be- difficult to UNI
tangle the financial maze concealins the
real ownership by the New Haven.
NcGovern said that he and. rstood that
Robbins was stlll acting for New Haven
interests In spite of NelleN's letter. Finally
ne took Robbins 10 the office OF John w.
Mckinnou. yice-president OF the Assets
Realization Company, and the deal Was
put through by which McNunon sold TO
the interests represented by Robbins the
stock. tl.O00,0uo ia bonds, sl.000,0OO in
ten year notes ard 100000 In two year
notes Three checks. one for $3.50. goo.
one for Sl.450.0o0 and another for $780,
600. figured In the transactions. and id.n-
tilted with them was Douglas Nicholson.
a lawyer OF Madison avenue, who is al
legged to have been acting for the New
Haven. Nicholson signed the lease OF the
Yale and Harvard 10 the Pacific Naviga-
tion Company and drew 1t up.
The testimony as 10 the Chi.mark COM
pany was brought out in the eXaminat ton
of Louis \. Linz, secretary OF the COM
pany and an incorporation The others
were Arthur l.. Smith and George A
Kaseman. each OF whom held one share
of stock and made up the board OF direc-
tors.
Linz is private secretary FOR Walter r.
Comfort. president OF the Reid lee Cream
Company. and his fellow director. Kase-
man , manager of the ice cream com
pany,
Linz testified that he didn't know what
Smith did for a living. lie said that the
directors voted 10 pay the compan s. )
$4,000 capital for the Metropolitan steam
ship stock upon instructions from Mr.
Nicholson, who wrote a letter Offering the
stock TO tho Chilmark company. and sug-
costing that II would be a proper invest
ment.
HAS there been any meeting OF the
directors since the first one at which YOU