Evening star. [volume] (Washington, D.C.) 1854-1972, 1916-03-14
W. F. Fitzgerald Is Heard.

broker, testified to Mr.. Brandeis'
connection with the Old Dominion Cop
per Company case. In 1903, Mr. Fitz-
gerald, for his firm of Towle G. Fitz-
gerald. employed Mr.. Brandeis to help
them get proxies to gain control of the
Old Dominion Company. They were sue
cessful, and after they had elected a
new board of directors 1t was found
necessary to raise more funds.
Mr.. Fitzgerald testified Mr.. Brandeis.
then as counsel for the company. pro-
posed the issuing of bonds and the
giving of a bonus of common stock
then in the company's treasury to the
purchasers of the bonds. At that time
Mr.. BrandeiS was suing A. $. Bigeiow,
profits in promoting the company. The
witness said he objected to the bonus
and suggested to Mr.. Brandeis that it
was inconsistent with the suit against
Bigelow.
81 felt thereafter we would forever be
in Mr.. Brandeis hands, said Mr. Fitz-
gerald. Il felt 1t was Illegal"
Gives Brandeis' Explanation.
The witness said Mr. Brandeis ex-
planned that he had arranged the plan
so that no personal liability would be
incurred under the law. To this Mr.
objection was moral.
This plan was discarded and it was
decided to get Phelps, Dodge Co.,
owners of adjoining property, the
United Globe Mining Company, inter-
ested in the enterprise It was planned,
he said. to consolidate the two COM
panies. and to give the Old Dominion
stockholders, some of whom Mr.. Fitz-
gerald represented. 2-to-1 interest.
An engineer was employed by the di-
rectors of the Old Dominion to make
an examination of the properties of the
that the Old Dominion stockholders
should receive 4-to-1 interest, as COM
pared with the stockholders of the
United Globe, rather than a 2-to-1 in
terest.
Mr.. Fitzgerald said Mr.. Brandeis
countenanced the directors in conceal
ing this report from the stockholders
and the public for two or three weeks
He testified that when he protested to
Mr.. Brandeis the latter responded in
the nature of advice to him that he had
better go in with the merger or get on
the band wagon.
AS result of the incident Mr. Fitz-
gerald testified his partner resigned
from the board of directors.
e. F. McClenneen Takes Stand.
Edward F. McClennen, law partner of
Mr.. Brandeis, took the stand after Mr..
Fitzferald finished. He said he was not
familiar with the drawing of the plan
for financing. the Old Dominion Com
pany, but that he never heard until
today that it failed because of any
doubt as to its legality.
Can you conceive of any immortality
in the matter" asked Senator Walsh.
Absolutely none" said Mr.. McClen-
men.
Mr.. McClennen read from papers of
the Old Dominion company that the
engineer who reported on the value of
the Old Dominion property had only
spent one day in examining the prop
erty. He recalled Mr.. Fitzgerald had
aid the outcome of the proceedings
when the report was received had re-
suited in profit both for those who
stayed out of the merger as well as
those who went in. Senator Cummins
cut short Mr.. McClennen's testimony
by remarking Mr.. Fitzgerald's tes-
him.
IF an attorney is to be held RESPONSE
Bile for all the acts of a company for
which he is counsel. most of us would
have to seek another country to live
in said the senator. II don't believe
in distributing unpaidfor stock, but
you haven't a big lawyer in New York
who has not done it,
The committee took a recess until to-
morrow to hear additional witnesses
regarding the Old Dominion Copper
Company case and the merger of the
Boston gas companies.