New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1870-03-16
TIE ERE VANDERBILT LITIGAIION
ACTION TO RECOVER s4,5OO,OOO.

ACTION TO RECOVER .4oVVjVVV'
In the Supreme Court, at Special Term, yes
terday. before JudgeBarnard the caseof The Ere Ran
way Company AIT. Cornelius Vanderbilt was called
The action IA brought to recover 5OOOO-s 10000 In
money and s3OOOO0 in stocks-pad to Mr. vanderbilt In
the settlement OF the great Erie war; This arrange
nent made by OF the creditors OF the Company
particularly M Drew and Mr. Edrdge, and the present
Directors claim that the arrangement was fraudu-
lent and that Mr. Vanderbilt pariicepS trdHdis
The trial OF the suit In open Court was commenced IN
November last but adjourned in Difference to the
wishes Of PLAINTIFF counsel.
On the opening OF Court yesterday order was read
by defendants counsel which issued by Judge Bar
nard the 9th Of November last requiring the plaintiffs
to produce their stock edgers transfer books book OF
certificates all the books containing the minutes OF the
Board of Directors, together with certain other books
and papers.
Judge Barnard said that he had power 10 order the
production Of books belonging to the firm, but If they
wanted any particular book or portion of them they
could have sworn extracts from them Taking the books
away from the office might interfere with the business Of
the road. and affect the running 81 trains etc.
Mr.. RapallO thought hgt no books in actual would
be required. Those required would appcrtan TO the
stock accounts Of the cal 1913, which probably not
Mr.. Field said that lie supposed there was no moro
reason for requiring the books than there for Mr.
Vanderbilt 10 bring a Dis books from the beginning of
to have Mr. Vandcrl 1T. books Further argument
then postponed until .c time ~ II may be necessary to
have the books IN Coug, AID tAe TRIAL proceeded
TESTIMONY or JAY GOULD
Mr. Jaw Gould the first witness called. and e.t
fed ~ follows am the President Of the Erie Railway
rcmGnhsr transaction with lir vanderbilt IN The sum
mer Of 1903 the first interview had with him at
me; we were shown up STAIRS, and Mr Vanderbilt sent
for Mr.. Fisk TO come into ms seePingrOom him
alone he came out III about Is minutes we had con
versaOn regard 10 the settlement Of the suits lie
said If he settled with the suits would fall through
the next interview was al Judge Perreponrs house two
or three days atterward, Mr. Daniel Drew, Richard
Schei Frank Hork, MI Martin. Mr. Dorman b. Eaton.
Mr. Cha-. \. kipaio NJ. Johh = I!dudee' ma Mr.
Pcrrcpont present; Mr. Porrepout represented Mr.
Eldrdge aud The Boston and Hartford Railway Mr.
Eaton represented tie Ere IsilWa Co. ana Nr RaIaO
represented Mr. Vanderbilt the latter assumed 90 repre-
seat Mr Vanderbilt there It was conceded by everybody
there that Mr. Rapal9 represented hm Mr.. Martin rep
resented Nj Drew; Mr. Fisk and myself had an appoint
ment with Mr.. Eldridge at the Fifth Avenue Il0tc we
found HIN absent ana started out III pursuit OF him. and
went 90 Judge PcyrcpOurs after waiting some time Mr
we we're shown back into the couuclroom where they
were: Idrgc took Fisk and myself aside aud SAID that
md ~ end fLi Ii.gaDn; the counsel ON both sides
strongly advised the settlement; all of the Directors Of
two Mr. Isk and myself; this Is what Mr.
Itrlgr said To nc vc-Fl-k and mysclt-hually con-
saw MIR Vanderbilt two three days after this meeting
ut h- office; stated 10 him what had been done at
o.If not 10 have paid Schcl until had settled with
hun MS loss larger than Mr. schels and ought 10
settled the s2lUp was Tor Shcla losses on stock
the others IN tie pooSchcll ard WOuh-scid out under
the market hc stated that ne orders TO sustain the
market a. certain price ~ Was ON The DAY mat MI
Fisk sold the Drew stock; we had negotiations
with HIM lu regard To settlement he SAM that ne ha
tOoO0U OF stock aud wanted Us TO take ~ We sad we
would take sturJn0t we went me following evening 10
his house and met hlm again; we closed our arrangehcht
with MIN 20 take s5tOOo OF his stock at 90 ana 10 settle
' ' ~ Ie LCT IpOsI n Wo very Sornt to
have them settled, aud If could carry them through
our Board there would be peace aud harmony between
tie two Companies; had another interview with hum
the dag u the Board meeting think II was on the ION
room Of Mr. Nauderb!t's Office: Mr. ElIrdge SAID that
al suits were To- be Stopped the COMPANY nae. 3.ieay
Enc Company were 10 purchase sjOOJj ot stock at So
IT, the Boz Td hc said he would wait at his office
until 1870 20 SEQ what done al the Board meeting;
settlement.
Mr. Field here offered in evidence receipt by Mr..
t5 Tor counsel fees Also two checks, one Tor "a vO
and the other !or $4,000 payable To Jay Gono, ana M
the sending Of 5000 shares % Erie Railway stock to
WORK, DAVIS Barton TO be delivered 10 Mr, H"G4
hy 5mll' loud, Martin q Co., payable To Worn DAVIS
Mr.. Gould rcsumes-T had stil another interview after
the settlement 81 THESE SUITE; there another series OF
Of work 7rne, stated to Mr. Vanderbilt that
these SUITS ha h.'n brought IA NioatuHO OF the settle
ueh e sad hc had found that the amount we mad pald
Inn dd not cover the loss he said that he controlled the
BiOOdEood SUIT he said that the suit did not amount
TO much until he nut Clark and OCOnnor on II; tniuk
he said 1t at the last interview Fisk and had with him
previous 10 the Interview Eldridge aud myself had WITH
Linn; do not remember that ne ever said anything
about Gaining on hls dogs; two objections were made at
the Interview at Perrcpouts hOusenrst that 4 there
wa. any recovery had ~ the suits would be 10 the Erie
Railway Company, ana second the enormous transac-
lions would swamp the Company these suits were IN the
uamc Of rho People, scLeli Work and Mr. BOOdgoOd
the company had no occasion for this sO0OO Of stock
they bought from Vanderbilt.
Mr Beach asked that the crOsseNamnatlon OF the wit
be postponed, the counsel who conduct u
not present It was then decided between counsel
that such books they could upon could be exam
med b. defendant counsel and the Court then adjourned
until Al al to-day.
For plaiutn, Field and Sherman; for defendant,
Judge Noah DAVIS, Mr.. RapallO.