The New York herald., 1869-11-21
THE RAILWAY C0L0SSH.
The Great LitigatiOn---HudSOn River
VS.. The Erie Princes.
Commodore Vanderbilt On
the Stand.
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WHAT ABOUT THAT $4,000, ,0009
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Jay Gould Co. and ether Large Fry In
the TransaetiOn.
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JAMES FISK, JR., IN COURT.
JAMES FISK, JR., IN COURT.
SUPREME CoUST--cHANBsaS
Before Judge Ingraham.

testimony taken before trial, and accordingly
the proceedings were at once begun In the
Supreme Court Circuit room, where q large num-
Der OF influential and moneyed men were pres
ent TO listen to the proceedings. Prominent
among them was Mr.. James Fisk Jr., whose corpu-
lent and extremely healShful appearance seemed to
give the most perfect assurance that he is blessed
with an easy conscience, and that his mind ls at
rest
Mr.. David Dudley Field and Dudley Field appeared
In behalf OF Erie" while Mr.. Rapallo with whom
Is associated Mr.. Beach, of Troy, watched the pro-
ceedings on the part OF the Commodore.
Judge Ingraham was not present during the exam
ination, but 1t was understood that should any
knotty point arise, or If any objection raised by
counsel his Honor should be sent Tor to settle tn e
matter.
THE COMPLAINT.
The foil owing is the complaint ont of which the
whole transaction grows, and which explains fully
the plaintiffs side OF the case to the reader:-
Sspre, o'etac t, s"d c,nty r Nss Yr1s Eric Ras
TIE Erie Railway Company, plaintiff, complains and
rranTha In February and March 1865 several action.
oeers IN wsch hs o aesa anq esrn Ian OF its
part Of the officers Of this plaintiff aud particularly the
part OF Daniel Drew, then the treasurer OF this plaintiff
which the said complaints asserted be in OF this
pslnaI ana ei rs ~ 'toekhoidess ssid
brought for the protection Of the stockholders o the plaintiff
but only for such relief as sees Claimed a woad b
for Tta The adyaaaggs an, ,gs Of the plaintiff
In any o. The said actions and publicly denied that he had
fouTha in july 1866 compromise said actions
was effected between john Edrdge the president Of this
and Richard sche and Frank Work other part by
tnued that the said sehe should receive or o
from this plaintiff that the defendant should relieved OF
hereinafter described and should receive
ana na aS no dee9s % @ Of ms paln should rs
Company ior at eighty cent and that
hat on or about the iih day Of Juy vi i a. the
city OF New York. the said agreement carried into effect
the plaintiffs funds acting in obedience orders OF the
influence Of The said EdrdEe and preW
paid or caused 70 be paid TO The defendant 81
road Company to the amount Of OO belonging to this
% na is aa ey se a ad Of this
Plaintiffs capital stock, which then transferred by
obedience the order Of directors at the sane
ana place PAID 70 the defendant the additional OF
lawful, valuable or sufficient consideration.
said said Erdse was presidest Of the said Boston
Hartford and Erie Railroad Company and had large
sona advantage to gain by dsposng the said
and the SAID Drew Was a adebad 70 hs asGs
and in one Of the actions aforesaid Injunction had
from endosing any Of the said bonds and copros
SrtsThat the objec and motive Of the said Eldrd.e
and Drew In making the compromise aforesaid to put
schel and Work money for themselves and all
this plaintiff which was at the time Of the TRANSACTION
between the plaintiff and the defendant aforesaid, well
EghlThat the defendant at the time of the transaction
aforesaid between him aud the plaintiff claimed con-
over The actions aforesaid and over the said sche and
work and induced the said Eldidge and Drew their
ne SAID purchase Of bis sock BY promising that the action
b ee b. ~ snga vas made
TO purchase tbs said shares Of is stock any them
any advantage gain from such purchase and he Price
pad by as aforesaid to the defendant 100000
more than the defendant could have obtained the
Tor the said shares; all Of which well known
fendant q the time Of the said transactions.
IN part payment for the said shares negotiable
TO persons who win be purchasers in good faith and for
~ gegdTha, before the commencement Of this action
the plaintiff rendered TO the defendant ly thousand shares
money aud bonds received BY him. but he would
TpeyolThat t6e plaintiff IS now and always has been
ready and willing 10 return the defendant The nifty thousand
shares Aforesaid upon receiving from him the money aud
whereiore the plaintiff demands judgment,
That the defendant be oy Injunction from
selling Or otherwise dsposng Of Of the bonds OF
ton Hartford aud Erie Railroad Company by HIM
2 That The defendant deliver the plaintiff the bonds
B. That Il the defendant unable 10 deliver all the ponds
aforesaid he be required give good and security
for the projection plaintiff against ali claims Of pur
chases beeo and also - pay to the plaintiff the value OF
. That the defendant pay TO the plaintiff the Of
S35OOO0 with interest from the 1lth day OF July 1868
THE ANSWER.
The de fendanf, in answering the complaint says
he has no knowledge Of the contents OF the COM
plant In the action sufficient to form belief. He
admits the allegation in the third clause and that
tue actions mentioned in the complaint were COM
promised In or about the month OF July 1868, and
said actions were discontinued on or about the Sd OF
July, 1868, but denies any knowledge or infor ma
tion as to whether such compromise was effected
between the parties named in the fourth clause OF
said complaint, or what the terms of said compro.
mise were. He denies that he was a party to the
compromise; admits receiving the money and the
bonds, but denies that tney were received by him In
pursuance OF the alleged agreement In said com
plant or by virtue OF the alleged compromise. To
each and every other allegation in the complaint the
defendant puts IN general denial.
COMMODORE VANDERBILT ON THE STAND.
The first witness called was Cornelius Wander
blt, who was examined by MI. David Dudley tield,
as follows:-
treasurer the Erie Railroad Company 81 900 900 and
also bonds OF the Boston, Hartford and Erie RAILWAY
TO the amount OF 81, 10000 A. received from Jay
Gould certified check for 81 600 900 and check Of
the Boston, Hartford and Erie Railroad Company for
$780, Tor the purpose OF carrying out contract
had made with MIR. Drew for the sale Of certain
amount OF stock; made that contract with Mr.. Drew
IN the fore part Of july lew Gays before this trans
actlon do not know that anybody was present; 1t
Was made In my house.
q. State the contract fully. A. sold Mr.. Drew
$1,000 shares Of Erie Railroad stock for $4,000, 000
Y. How were the s4,ooo,ooo to be padS A. In
Z. AZ what price3 A. At eighty.
was that the price the stock was then selling at
Ln tue marketS A. Upon my honor, don't know
tuat
@ Did you not then know2 A. think It is very
likely did.
q Was not that price much above the market
prlcet A. Inc price OF Erie stock at that time had
been vacilatng.
Question repeated. A. don't know.
U Dld you not then know itS A. ! can't say
whether Old then. | think It is very probable il
tould not buy II unless you ran Ii up.
O. IL you have II 10 sell, then. you must sell II nj
depreciation A. II you sell 1t you have 10 sell il
~ the market price, did not care about selling IL
at that time at all.
q. Had you held the stock longf A. Well for
some time; can't tell how long
z. Had you bought 1t during the litigation or that
rear and the previous yearp a. That don't know
q. Do you not know whether that stock was pur.
chased by you during the litigation commenced the
previous autumn and carried on IN the beginning OF