The New York herald., 1869-11-30
Daniel Drew's Narrative Of the
Transaction.
The Average Ups and Downs
Of Erie Stock.
Interesting Testimony and Discussions
by Counsel.
SUPREME cuusT-spEclAL Term.
Before Judge Barnard.


otu-In accordance with previous arrangement
between the Court and counsel this case on for
trial at eleven O'Clock yesterday morning before
Judge Barnard, the court room being crowded 10 the
doors by an audience large portion OF which con-
sisted OF wealthy and influential citizens.
Messrs. David Dudley Field and Dudley Field ap-
peared for plaintins and Messrs. fl. F. Clark,
William A. Beach, Hon. Noah Davis, John E.
Burril ana Q. A. Rapallo for the defendant.
MI Field, in presenting the case to the court,
sald:-When this case was called week ago made
an opening and 1t Is not necessary for me to reca
pituate the facts now. 1t is suit brought by the
Erie Railway Company against Mr.. Vanderbilt to
recover large sum of money which he Is alleged to
have obtained from the company fraudulently. The
defendant has put in an answer most OF which con-
sists In controverting the complaint, without any
Affirmative allegation. 1t states that he has not
knowledge or Information sufficient to form q belief
The only issue Of allegation positive that he re-
ceived this money TOR a good and valid considera
tion. What that was he does not say. We have
examined Mr.. Vanderbilt before trial and win
begin with reading his testimony.
Mr. Rapallo-We here make formal motion to
dismiss this complaint on the ground that 1t does
not state facts SUFFICIENT to constitute cause Of
action.
Judge Barnard-I Will overrule the motion and give
you an exception.
Mr. Field then proceeded to read the examination
OF Mr. Vanderbilt, which has already appeared per-
batfna in the HERALD
Mr. Field then called as first witness Alexander
Alaire who testified that he is the paying teller OF
the Manhattan Company and was so in July 1858;
the two checks now shown me paid; paid them out
OF the money Of the Erie Company; the written
across those checks is mine; that is the mode In
which the Manhattan Company certifes Its checks.
NJ \
to the accounts OF the Manhattan Company from
February 1868, down to the time when these checks
were paid; don't know how the Erie Company got
this money; there are not in the accounts Of the
Manhattan Company any means OF showing the
source from whence the money came that know OF;
have no knowledge OF my own to how the Erie
Company got into the bank this money which paid
on these checks; the account continues to be kept
there still; don't know whether the account
sweled in its proportions about the month OF March,
1858, or not.
Q. Do you remember about the time some $4,000
shares OF alleged fictitious stock OF the Erie Railway
Company was issued A. do not
Q. Was the account very heavy ones A. Yes 1t
was at that time, but 1t Is very light now.
Q. Were these checks OF unusual magnitude that
were drawn by the Erie Railway CompanyS A.
Pretty large.
@. Supposing deposit OF unusual magnitude were
made In the Manhattan Company-say two or three
millions or q mllion-would there not be an entry
the books OF the receiving teller of the source
from whence 1t came? A. A ticket would be given
with the deposit, and that might tell whether 1t
notes or checks but whether they would tell where
the money comes from l don't know; the name Of
the receiving teller OF the Manhattan Company is j.
Theodore Baldwin; John S. Harberger is cashier.
J. d. Rick next examined by Mr. Field. He
testified that he is broker and member Of the
Stock Exchange for two or three years. and that on
the nth OF July, 1865 the market price OF Erie
about TO-
Cross-examined by Mr.. Clark have the book
containing the rates or Erie Railway stock, begin
ming as far back as February. 1865: on the lsI of
February, 1868, the price 74% for sale at the
Exchange; from the 1st of March | think IL ranged
from 20 TO 15 am not certain about that: think Ii
ranged from about 81 to Is between the Isl OF Febru
AIRY and the 1st OF March; on the 9th OF March the
highest price was slS; by refreshing my recollec-
ton see 1t reached s2}s on the 9TH OF March, be
tween half-past ten and twelve O'Clock; that day
see by the second call IL fell 10 14ja which Is the
lowest quotation by our list.
Q. Was that unusa iaf A. Not for Erie
stock (Laughter.) 1t ductuated very widely at
that time.
Q. What was the greatest fiuctuation at that time
A. From two to four per cent.
Mr.. Field here rested his case.
Mr.. Beach moved to dlsEHlss the complaint on the
ground that no cause OF action was established for
the plaintiffs as against the defendants. Second,
upon the ground that the combination ana con-
sp1racy aud fraud OF the Erle iaIlrOad Company
charged in the complaint was not proven; and
third, that II the purchase OF this stock by
Commodore Vanderbilt was really on behalf
OF the Erie Railroad corporation action could not
be maintained against the defendant TO set aside that
Mr.. Clark then ably reviewed the gravamen OF
the complaint, and concluded by pressing his mo-
uon.
MIR. David Dudley Field followed briefly on the
other side, contending that the plantns had made
out clear case of fraud, &c.
Mr. Rapalo next spoke at some length on behalf
OF the defendant controvertlng the views pro-
pounded by Mr.. Field.
After reply by MIR. Field,
Ex-Judge Noah Davis on behalf OF the defendant
made an elaborate argument. in when he showed
tnat Mr. Nahuerpit was clearly innocent OF fraud
or colluson with the Erie Company the transac-
tion at issue.
Judge Barnard SAID that the only theory on which
this case could come Into court was that there was
coiusion, fraud and conspiracy the part OF the
former directors OF the road with Mr.. Vanderbilt.
There was no such proof here, however. and unless
there was more evidence behalf OF the plaintiffs
he should declare the complaint dismissed.
MIR. Fied-Well, sir, VIII proceed, then with the
evidence. l VIII cal Mr.. Drew.
Mr.. Clarke-Is 1t right that the counsel should rest
his case, specuiating on the chances OF what the
Court might rule, In great case like thlsy Mr.
Drew Is IN court and to guard against any mistaSe
attachments were issued against tn witnesses; and
then upon mere technical point an experiment IS
practlsed to see II the Court Will entertain suit
upon these grounds. say IT Is not consistent with
decorum that such an experiment should be success
ful. Mr.. Drew in court at the time the learned
gentleman rested his case. He knew he was here.
lie knew he had counted upon naud, anu ne had
witnesses In court to prove that fraud II he could
Mr.. Fleld-My motive was 10 save the Time OF the
Court as much ae possible. II we are right
IN our view, according 10 the judgment OF the
court, we should be spared any further testimony.
stated at the time that rested for the present;
lparueuarly stated that IL IL precisely like de-
murler. IL IL o position OF things IN which we
wished to shorten the case.
unquestioned.
IN mr. ~. rled ED very well; VIII proceed. Mr. Drew,
Will you take the stand '
p, G EXAMINATIONS OF DANIEL DREW.
Exauiineu py Mr. Fleld-Q. MIR. Drew, were you
~ as sS n & ~ saI isoo, an officer OF the Erie Rail-
way company A. Yes, cir, was on the lst OF JnIy
Y Mhat olncerf A. was director and treasurer
q Had there been previous TO that time n seres
Of ltgatlons respecting that company, a. Yes Sir.
there had. " '' '
Y Dlu you AZ any time have anegotiation with the
defendant, Vanderbilt respecting the settIement % ~
these lugationsf A. No. "
a. Dld you have any negotiation with him about
any matter whatever OBJECTED to1