How Money Makes Money.

Southland Times, Issue 19387, 10 September 1904, Page 3 (Supplement)

How Money Makes Money.

A singular case on & vcrbgl contract for a million of dollars was handed down in the U.S. Supreme Court recently, where ono Mengia, a promoter and racing man, secured a judgment against General Fitzgeraltl, tho multi-millionaire railway man of "Manhattan, for 1,175,000 dollars. It j was on a mere verbal agreement ou a piece of railroad owned by the City of Baltimore. Mengia, the promoter, had gathered a mass of matter which tended to show • that under proper management, and with certain connections, its v«,lue could bo immensely multiplied. General Fitzgerald turned tho matter which Mengis had furnished over to one Creed, -who acted as his attorney, and was also an investigator and promoter on railroads. Creed confirmed Mengis'a judgment ; ou this judgpient a board i of millionaires 'rrcro 'di-niniwfd together, taking in the Goulds, Astors, Vanfclerbilts, Whitneys, and maiiy others who boasted plethoric sacks. The deal was made and the railroad was pui*cha£ed from the City of Baltimore for something over 8,000,000 dollars. It was at" once bonded for 00,000,000 dollars, and sixty millions moro wero added as preferred stock, which was to be divide*.! among the subscribers. Creed, General Fitzgerald's second investigator; and promoter, got a liberal fee for. his services, and also a place in the directory, but Mengis, who originated the matter, was left out in the cold. When the deal was finished and tho cash was paid, Mengis applied to Fitzgerald for his million dollars. Fitzgerald declared under oath that he did not know him in the transaction. The case was given to tho jury, and it was evident that they believed Mengis, an 1 -, that they didn't believe Fitzgerald ; it only took them a short time to reach a conclusion that Fitzgerald owed Mengis not only a million of dollar-, but they added 175,000 dollars more for costs and -expenses. This is tho heaviest judgment ever given in a civil case on a verbal agreement since the enactment of tlie Federal Constitution. A new trial has been denied the defendant, though a short time was given to bring in a bill of exceptions. Tho plaintiff's lawyers held a jubilee on' the annoiincejnent of the verdict, which was without parallel in the U.S. courts.