The New York herald., 1869-01-20
ANOTHER RAILROAD WAR.
THE NEW YORK CENTRAL IN COURT.
. Commodore Vanderbilt's Theory Of Run
ming a Railroad.
Ills Cpinion on nIattsrs II Wall
Strset.
supsrME COURT CHAMBERS.
Before Judge Ingraham.

came before this Court yesterday Tor argument. out
precisely wha. all the motions were or the order in
which they were 10 be heard was not made very
clear. mr. Teld, Mr.. vandesp0el and Mr. Blatchford
appeared for the PLAINTIFF and Iii. Thatcher for the
defendants
Mr.. Field in the opening discussion as TO the order
In which the motions snould be heard, claimed that
the case came up first the order requiring the de-
PENDANTS 10 show cause why the original and tenn
porary order Of injunction should nor be continued
Mr. Thatcher contended that the case came before
the court on the order TO show cause why the orig
nal order OF Injunction should lot be extended SO
as to embrace other matters and also TO show cause
why the defendants should not be enjoined from
issuing ''hterest certilcates.n
1t was finally consented that all the motions should
be heard together.
Mr.. Field then said that the papers upon which he
moved were the original complaint and inJunc
ton, the'IaaeTs upon which the enlarged Injunction
was moved Tor, the supplementary complaint
afadavits anu temporary injunction thereupon
Issued. the order to show cause why that
Injunction saoud not be continued and the afdavits
OF Horace I. Clark. Richard Schel ana Cornelius
vanderbilt He would merely state the nature OF ali
OF these papers except the ailidays last mentioned
and these be desired to read The gis OF the origi-
nal complaint was, in the allegation that the New
York Central Railroad Company had a fixed capital
and that the oicers OF the company. in violation OF
law, had increased thai capital by the ISSUE as t
was called. OF convertible bonds aud otherwise, and
the object Of the suit was to obtain judgment that
that issue OF stock, so far as 1t could be, be
recalled, or that, wherever thcre could be-
any remedy applied, In case 1t could not be re-
called, that remedy be applied The additional
papers upon which the order was obtained were OBJ
tanned the OF the issue OF these certificates OF
ind nm thaff ~ in
temptation to Issue them. They were not called in
that afildavt interest certificates" but they were
described as the same thing. The supplementary
complaint was issued upon the fact, as established
by the action Of these gentlemen and by the pubica-
ton IN the newspapers OF their resolution, passed
late on Saturday night and put into effect on the fol-
lowing Monday morning by the issue of interest GER
uncates winch we're description OF security never
pelore known In any mercantile community. He
d as Illegal and ffaaaauloni' a NV character ssr
transaction. It seemed tnat these gentlemen, the
directors OF the New York Central Railroad Com
pany, conceived the idea that By some means they
could affec the stock or the stockholder by giving
him something which would almost double the mar
ket value-tha Wall street market value-of the
could have no other effect than to make those men
who owned stock on the morning OF that day be-
ueye that they had double the amount OF their In
yestments. Why this was done, the motive, the
apology FOR it--or excuse, whichever II might be
ca.ed--had all been stated by the two men wno did
~, ana WHO were Mr. Clark and Mr.. Wander
bfif, and they Lad ayoved taat II was tneir
act throughout The form OF their issuance was
got up by committee, conceang 1t from every body
meeting at MIR. ClarA's house between eight and
eleven O'Clock, on Saturday night passing the
solution there aud then and az the opening OF busl-
ness on Monday morning putting these certlncatcs
out and running the stock up something like sixty
or seventy per cent. or az least very large
amount. Mr.. Blatchiord. hts associate in the case,
would read 10 the Court the afdayiis detailing
the particulars OF the matter.
Grlswod, tnen proceeded TO read the following
AFFIDAVIT or CORNELIUS yANDERBILT.
swe9 10 be SsiIs n ea emIs sases ~ an
follows:-
Q. Are ycu an oiricer OF the Central Railroadf A.
Q. For how Iong have you been such, A. About
. year--slnce December, 1857.
q. Were yoa present at any meeting OF the Board
when the interest certificates were authorized 10 be
o. was The statement made to the Board OF the
amount OF net earnings applied to construction at
that timeg A. rough statement was, think, Mr..
Wooster made up statement, as understood IL.
U. Was II presented 10 the Board al that meetingf
A do not recoilect whether IL was or not: on re-
freshing my memory recolect that tnere was
when we made the dividend.
Y. Did you ever see ltf A. do not think did;
think took tnelr readiDgfor IL.
q. Can you STATE anything IL c0nfanedf A. Nc;
but had the evidence of Mr.. Wooster; told HIN 70
get up such and such papers, showing statement OF
the aifalrs Oh me company.
o. Did yoa see the statements A. do not know
that did.
Q. DO you know that he ever made anyf Al
q. AT this meeting OF the Board was he presents
A. think he was, tut would not swear positively
q. Was any statement made at that meeting OF
the Board oi the amount OF the net earnings applied
70 constructonf A. think there was.
q. Had any statement been previously made ? A.
Yes, we had had q statement; know that was In
Albany some days myself ior that purpose.
accounts
o. wnere were the accountsa A. In Albany.
Y. In the Office OF the company tneref 4: Yes,
there was, where we were posted up as 20 what we
were going 10 do, but we did not get all through
with ~ and left certain things for Mr. wooster to do,
which be did, and then came and reported 70 us.
u What was the amount OF the net earnings APP
piled 10 the construction account for all the period
from 1858 10 the time OF your meetings A. do not
know.
O Can you tel within several millions; A. can
not tel unless have tue figures.
Y. Can you tell the amount OF net earnings al allf
tainly.
q. Where Ia the bookt A. In the once.
q. Whcref A. In the Secretaryis once, pre-
sune.
q. where Is thati A. In Albany.
q. Not hcreS A. No, sir.
!. Can you state any Of the amounts hercf A.
q. How DO you know that this company has ever
earned dollar beyond what Il has PAD out IN divi.
dendss a. Know tnat Irom the booAs and from
tie representations OF the Treasurer.
q. And are these books sc Abanyi A. presume
that tney are; ttey may be presented az any time.
q. Wit sou send and ket tncH Tor usf A. do
NOT know that nave III snt to ta@e zoe books outoi
the onlce
Mr.. Fieid, OF counsel for the plaintiff here states
that his en- q gements such 10 render mpas.
siDe for him 70 attead 10 the further examination
OF the witness unlil tomorrow morning.
Mr. seward OF counsel for the plantG. states that
he IL one tHe executive connittee VI the dinner
be given 90 Mr. Gerard this evening ana las assigned
10 lm the duty Of going Tor tAe gentleman who 4 70
preside nc ne dinner, ana tlst ne 10 unable, there
fore to attcn0 longer TINS aern0on that he IL will
ing. however 70 attend az such time an1 place to-
morrow morning as Mr.. Vanderbilt may suggest Is
convencng ior himself and proceed with the exami-
nation
Mr. vanderbilt states that ten O'Clock tomorrow
morning will suit his convenience.
The examination IS adjourned Accordingly.
jan. 15--Il A. NJ.
Examination Of witness rcsumed--Q. When did
you receive notice 10 attend the meeting ~ the gth
OF DecemDers A. That do not rcconect; we could
have notice TO 0ufseves we called the Board To-
getner, walOn was common custom, we called
the Board together al dnerent times and different
places.
q. Do you recollect when any one was notified 70
50 A X.u lQul