New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1870-03-18
THE ERIE-VANDERBILT WAR.
THIRD DAYS TESTIMONY or JAY GOULD AND
JAMES FISK. JR.


The trial of this case was resumed yesterday,
,,.,ore Indigo Barnard The courtroom was crowded
with lawyers brokers, witnesses and other intereSeu
nersons Tho crosse animation OF Mr. Gould was con-
tinued by Mr.. Horace r. Clark.
CONGRATULATIONS or Mr. GOULD
Mr. CouId testified az follows stated yesterday that
after the Board Mr. Eldrdge sent me UP 10 Sa'
the result OF the meeting; the amount OF the eapi'a
stock Of the road time OF the Issue OF these oon'
yas about t31OOo,OO0 OF tho common mciuuins '
sIooooco convertible bonds the convertible pohus were
not the first that had been issned by the COMPANY
there had been several millions issued before peca"o
connected with tho road think about slooooopi POT
tIon of the mortgage debt had been made conVerDe,
st the time OF the settlement IN July, os he s,oeh m
II went above n or 72 it has been above 20 since
Commodore Vanderbilt bought u Kept ialng aer Nn
Jefseyi A. He had heard OF proceedings Ior oonenPe
in violating injunction; he wanted 70 preserve sne
funds OF The Company from Receiver these SUITS were
not brought in the name Of Commodore vanderbilt put
his interest do not think any wfng S 70 %s
continue my suit against the Directors; 40 not KNOW
that any was given Peter Il. sweeny was appointed
Receiver when Mr. Drew was ID SeIs lcu,ra 70 the COM
mencemont OF this suit A. must have done 40 40
remember that talked with Dir fieid ABOUT 'n'
O. Did You direct the commencement Of this sultt A.
must have done SO INK o arsc' to 1et anita ~ DRUG
Q. Did you direct the commencement OF TINS present
this suit do not remember whether gave directions
1t do not know OF any resolution OF le
say that thew took any action believe attended all
the meetings OF the Board from July to December; 10
not remember how many meetings we're held believe
the Executive Committee authorized the commencement
OF the suit; think was present at suoh meeting
the matter talked over at meeting OF the Commit
tee and t was decided this suit; do not
remember who was present; remember DehR tnere
myself do not remember single person particularly
cannot tell when It was; It previous TO bringing
the suit fanghter; the members OF the Executive Com
mttee at that time were Tweed Gould tbFother Oh VIII
ness), Fisk, Lane, and myself m.u
O. Where the conversation heidi a. at tho ONCE
of
O. Did the Executive Committee arrive at conclusion
regard to these ss GoF 70 Do . So
know that there was any minute made In The DOCKS Oh
O. Did you state your dissent to the commencement OF
this suit at the meeting which final conclusion was
reached A. think did In tho fore part VI tue meet
q. Was there resolution Of the Board OF Directors
defining the powers OF the committed A. Yes, Biz they
should possess and enjoy all the powers OF the Board
Mr. Reach here asked for some direction from the Court
n regard TO the production OF certain books OF tho Com
pany The defense had asked OF the counsel on inc othet
side certain books, and ono OF them which they most
wanted the Company had refused poremptoriy 10 let
Mr. Field objected to hearing motion In the middle OF
the trial If they wanted the books they should be-
other Judge cpare aud get an order Tor tho
Mr. Beach said that he did not ace how the counsel
could object to the presentation OF petition Tor inc
the understanding had with counsel on the 18TH m
Mr. FiedI object to his stopping the trial to make an
erparie order. They must go TO Chambers Tor H. A..
The Court that order is erpdrx VIII sgn IN o
ir.
the Court that he would want order for the prodao
ton Of the books gave IT, ana NE dossnae 70 be
Court what books you want tho Court VIII order
Mr.. Bescr--We want the books showing the proceed
inRs OF the Board OF Directors.
The Courwith regard 20 the Illegal Issue OF stock.
do not think has anything to do with the In re-
gard to OF the Board OF Directors that ia
proper ana the Court VIII direct copies OF tnen 70 ne
denied do not think that II makes any difference how
much stock has been issued since.
Mr. Clark-I proposed
questions the witness that this stock issued and
thrown on the market under such circumstances as
wonld make them liable for 1t. We think that II your
Honor say that that Is immateral, why 1t will
The COURT know OF illegal stock that has been is
sued that stock has been issued that not allowed by
Mr. Clark said that he would like to ask q few ques
lions OF the witness Mr. Field opposed on the ground
that counsel had occupied three days already IN the
cross Examination. and that they limited to one
counsel In conducting the cross examination nm ooo
Mr. Davis said-Wo propose to show that tips s5Noco
OF stock Illegally Issued. and that thot defendant
bought il IN good faith II your Honor holds that this Is
10 go on. We bought in good faith, aud under crcum
stances that render the Company liable for damages. We
would like a ruling on the question.
BY the Court-Ifyou viii ask directly the question
whether the sccoO00 had been rregulary Issued. tho
Court viii rule it, According to my opinion. 1t is not
important subject whether the stock was legally or
! By Mr. Beach-Q What disposition, Mr.. Gould. was
made Of those certificates for the $1,000 shares OF stock
Examination resumed by Mr. Clarke. Mr.. Gould. you
Co buy stock; then why did they
buy III A. did not buy It..
q Why did they buy itf they had occasion for III
A. Because The Directors voted to.
@ Then the Directors thought there was occasion for
II ( A. did not ask them their thoughts.
own RH 'S ON Yos
posed TO the purchase of this stock.
Directors Of the Company on that question Yes, sr
O. Is there eny book IN the Office OF the Railway Com
p%%S Of the stock Ye Sir the cash BOOK ''
q. Did not the Railway Company get possession OF
which they otherwise could not have goti A. They got
rid Of all their money
O. 1 ask you IL the Railway Company did not getpos-
session which they had not before in their
possessloni A: Not that know OF.
O. Did not Mr. Drew pay some money 10 the Railway
Company that settlement that he made A. Yes. Sir:
O. How muohi a. Five hundred and forty thousand
O. Now, sir wasi not part of the arrangement that
you made with Mr. Drew, III pursuance OF which he paid
that money, that tho company, or you aud Mr FISK,
should step hs shoes and carry out the agreement
made with Mr. Vanderbilt TO buy certain amount of
@ Then the settlement that you made of the claim
ngainst Mr. Drew disconnected with this matter
trelyi 4. to that 1t wss embraced in that
O. Now. what was that settlement A. It WAS in the
first place. that all the suits TO be stopped second.
that guarantee another million OF the Boston.
more OF Mr. vanderbiirs stock at 10; then
pay Mr. Vanderbilt losses the schel poolsi OOOOO
then we were buy Mr. Eldtidge's bonds and We were
to give Mr. Vanderbilt two seats in the Board
@. Did you release Mr. Drewf A. Yes. Sir, the Com
O. Did he release the company from the claimi A. do
know that the company released him from all claims:
they released him from certain claims. and from tho
tract, because he paid the money.
O. Now. your settlement, how much money came
into the treasury OF tho Erie Company that there
before A. $4,000.
O. Was there anything moref A. Nothing further
O. Did you become Treasurer about that uei A. Yes.
Sir
@ Did you not, 5 rs treasurer. receive into pos
large amount OF money which had been retained
Mr.. Drew's possession, and which SUN the pro-
OF the sale OF the $0OOO0 OF stock issued for the
convertible bOndst A. He treasurer OF the road
and when succeeded him he handed all the funds
IL part OF the arrangement that Mr. Drew should
tire the Board and that should be elected
@ You were the successori Yes, Sir.
O. And he did hand to you certain OF money!