New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-12-18

OF the threat OF the BONttHmehb 10"
vers TO impeach the testimony az Attor-
ney Morehouse.
This mans testimony is not the
same as when given before the Federal
grand jury and intend TO impeach
himl" shouted Fra Il. Swacker, Fed
eral prosecutor.
When Mr.. Morehouse was recalled to
the witness stand in the afternoon he
admitted that he had taken all the
hooks and assets of the Billiard Com
many across the Canadian line. The
heated cross-exsmination concerned the
purposes that prompted him TO make
this sudden transfer.
Billiard Company Untaxed.
The LAWYER at first insisted that his
reason for the action, which took place
Just as the government was beginning
its investigation Of the New Haven was
TO escape the heavy taxes imposed upon
such securities under the laws OF the
State of Connecticut. Cr5ss-examina-
ton revealed the fact that the Billiard
Company had not paid cent OF taxes
for four years, although its securities
were assessable at the rate Of $4,000
year.
well" Morehouse finally said, y
was called to produce the books before
tho Interstate Commerce Commission,
which was making an investigation Of
the New Haven road's affairs. re-
fused TO produce them after confer
ence with Mr. Robbins and Homer ;.
Cummings. counsel for John l.. Bill
lard" ,
Attorney Swacker then produced
minutes of a meeting of the Billiard
Company, of March %, 1914, IN winch
the transfer Of the books and assets
of the company to Canada was author
lied.
Didn't you tell me that you could
not produce those books without the
consent of Mr.. Robbins or Mr.. Billiard =
asked Mr.. Swacker, reading from the
minutes of the grand jury.
IF | said so ! suppose 1t must be
So" was the answe. OF the witness,
after a slight hesitation.
didn't YOU state that Robbins would
not consent to it, and that II was use
less TO 20 to Billiard, as Robbins dom
mated him ?"
LAWYERS for the defence were upon
their feet in a moment, Directing TO
the question on the ground that 1t was
violating the secrecy Of the grand
Jury room"
Impeachment Threatened.
Il was then that Mr.. Swacker
charged that Morehouse had changed
his testimony in important particulars
since his appearance before the grand
Jury, and that he intended TO impeach
him. Judge Hunt said that he did not
believe that the objections of the de-
fence were well founded. but sustained
them temporarily, pending further
discussion of the legal question in
volved.
Mr.. Swacker avoided the issue by
asking Morehouse if he had not made
such IA statement outside the grand
jury room, and the witness admitted
that he had.
Then came a discussion of Robbins's
request TO Morehouse 10 wind up the
affairs of the Billiard Company. This,
Morehouse said, he did by arranging
for the election Of himself as president,
Harry V. Whipple as vice-president and
an entirely new board Of directors. Then
he went to Canada and organized the
ST. Lawrence company. Having attended
to these formalities, he obtained $4,000
from Robbins and turned il over TO
Whipple 10 purchase the stock OF the
Billiard company.
At this juncture an unseen hand sp-
peared in the proceedings. Whipple re-
ceived a mysterious telephone message
from the New York banking firm OF
Hallearten & Co, offering TO take the
stock off his hands. Whipple accepted
the officer. Tracing the order, 1t was
found that the banking house received
the order from a Montreal brokerage
house. which, in turn, had received II
from the Montreal lawyer who had as
sisted in the organization Of the cor
poration.
When Whipple was called to the wit
ness stand Immediately after More
house completed his testimony he con
frmed his part in the transactions.
The Billiard Company assets, which
for four years escaped taxation by the
State of Connecticut, consisted of slO,-
4OO.O 900 worth of bonds OF the New Eng
land Investment and Securities Com
many. sl.7OO.O0O bonds of "The Boston
Herald" and 100000 worth Of miscel-
laneous securities.
The untaxed securities reposed, for
time. in a vault at Yale University.
Norehouse denied that his haste in re-
moving them from the Offices Of the
company was due 10 a fear that the
new administration OF the road might
- NTH him