, 1870-03-19

THE ERIRVANDERBILT LITIGA-
TIOH.



Action to Recover ~, 500 ZOO,
From ths Eas FORK Tribune, Hareh 16.
In the Supreme Court at Special Tenn, Jee-
terday, befoto Judge B.snard the sase Of tho
Erie Railroad Company vt. cornnlius Wander
bit rss called TIE ~ sSaon o1o i9 brought 70 re,
ss7ss e. !;oeKSs te nl T. vaade9zbs vReaez IND ID
the settlement Of the ds.s great Eric waz~ This
arranrsuaeut vaa uado ty some Of the credit
oya OF the company, particularly NJ. Drew and
M1 E1dridga, and the p1tsaut Directors now
ona and Tat III. Vanderbilt was pcrticsps
frauds. The trial Of the suit in open court
wax commenced in November laat, but was ad-
journod in dcfsrence to the wfshes Of plaintiffs
coH1zeL
On the opening Of court, yesterday, an or
der WI, 1cad bT defendantss counsel, which
was irs7od By Judge Barnard on. tho eth Of
November last, requiring the plaintiffs 70 pro
duce their stock ledgers, t1ansfer books, book
Of ce1tiEr2tcs, and al tho books containing the
auses Of b1 se Rqs S ., I'D pspeqs ''ss'F
Judge barnard said that he had no Enwer to
order Tho production Of books belonging TO tho
firm, but Il they wanted any particular book,
or portion of them; they could have sTorn ak
from tho Office might: Interfere with the bust
nees Of the road, and affect the running OF
trains, etc.
Mr. Rapal1o Aoush that no books in actual
use would be required. Those required would
appertain to tho stock accounts of tho yoaE
l56s nhieh arc probably not in uso now.
Mr. Field said that ho supposed there Was no.
more reason for requiring tde books than there
was for Mr. Vanderbilt to bring al his books
from the beginning Of his operations until tho
Vsnderbnt's books Further argument vas
then postponed until such time as it may be
necessary to have tho books in court, and tho
Hial wAB proceeded with ...-
Mr.. Jay Gould was the first witness called,
the R1ie Railway Company; in 1908 WAS
Director Of thAt company; I remember .
transaction with Mr. Vanderbilt in tho summer
Of 1858. the first interview had With bin VAS
Fisk called Will me; We weso shown ur Stair,
and Mr.. Vanderbilt sent for afr. Flax to come
into his sleeping room and sec him atona; ho
camo out iu about fifteen minutes; We had
suits: he said il hs was settled with, tho suits
would fall through; tho noxt interview was at
Judge rerreponts house, two or three days
afteIwara; Mr.. Daniel Drew, Ihchard
schen, Frank Work, Mr. Msrtin, III.
Rapallo, Nj. Joseph S. EIdriago, and sIr.
pierTepcnt we're present; Mr. hcrropont rop-
resented Mr.. Eldridge and tho Boston 4 Hart
ford Railway; Mr. Eaton represented the Erie
Railxay Company, and VI. hapallo represented
0lE% f&UNt&UuLf 4Ao lA&kcA AS1AAAGA Az A0p4dS
sent Mr. Vanderbilt there; it WAS conceded BY
everybody there that Mr. Rapallo represented
him Mr.. Martin represented Mr. Drew; Mr.
Fisk and myself had an sppointmeut with hlr:
Eldri1ge At the Fifth Avenue Hotel; We found
him absent and started ont in pursuit Of him,
some time, Mr. Eldridgo and Judge Ferrepont
came into the parlor, and We were shown back
into the council room, where theJ were;
Eldridge took Fisk aud myself aside and
said that it was Eery important thas
the litigation; the contract on both sides
strongly advised the settlement ;all Of the d.
tcctors of the company we're In favor OF it cI-
cept,we two, Mr. Fisk and mJFelf: this il Whist
NJ. Eld1idge said to me we-Fisk and my-
with the settlement: I next saw Vanderbilt two
OF three days after this meeting at his othce.
we stated to him what had been done at Mr..
rerTepont'a house he seemed To think thAt
70 ought not to have paid Schell until We had
settled with him his loss WAS larger than Mr.
WAS fer Schefl's losses on stock the S25, 900
wero for Mr.. Rapallo; Vanderbilt said
that the others IN the pooa-Schell and
Wo1th--soh out under him; they got
him to give them an unlimited order to sustain
the market; he stated that he gave orders to
sustain the market at = certain price; it WAa on
the day that Mr.. Fisk sold the $4,000, 900 Of
Drow stock; We had negotiations with him in
regard to settlements ho said that he had sl0,-
0OU 600 of stock, and wanted III to take it; we
following evening to his house aud met him
again; We closed our arrangement with him to
take $4,000, $50 Of his stock at TO- apd to settle
his loss in the pool, about 81, con, ,010: no be-
gan to talk about the itigadons; be said it was
very important to have them settled, and il We
could ca17y them through our board there would
be peace and harmony between tho two COM
panies; ! had another intorview with him
tho day Of board meeting think it was On
tho 10Th Of July AIr. Eldidge waa presant
Office Mr. Eldridge said that all suits were to
be stopped; the company had already sett1ad
with Seheu and Work, and were to settle
with Drew We were to guarantee another
chase SIS, ,0oo, 900 Of stock at 50, and were to
pay him Il ,000, 600, and he WAS to have two
seats in tile board be said he would wait at
his Office till 1890 to see what WAS douo at tho
board meeting; We went there after the moot
ing and carried out tho settlement.
Mr.. Field here offered in evidence receipt
by Mr.. Scheu OF GAGS, $50 for the settlement Of
his loes, and also e., 600 for counsel fees. Al
60 two checks, one for 34G0, 600 and tho other
for e54U, 600, payable to jay Gould, snd en-
nouncing tho sending Of SC. .000 shares OF Enc
Railway stock to Wori, Davis i Barton, to be
delivered to Mt. Gould on his payment OF
Il, ,b00, 600. Also check for 81, 500, ,1M by
Smith, Gould, Martin 4 Co., payable to Work,
Davis q Darton.
Mr.. Gonld resumes lad still another in-
| teryicw after the eettloment Of thesc suits;
there w.s another aeriee Of suits brought in tho
name OF Dalnont, but really in the name Of
! Work and Schell; / stated to fIr. Vanderbilt
t that these suits had been brought in violation
| Of the settlement; he said he had found the
amount VIC had paid him did not co.cr the loss !;
be said that ho controlled the Dloodgoo1 suit !;
ho said that the suit did not amount to
much until lie put Clark md OCouor
on it; think be said It at the
last interview Fisk and had with him previous
| to tho interview Eldrdge aud myaeH had with
t him. do not remember that he ever said any
thing about calling of his dogs. Two objec-
| tions were made at the interview at Pe1o-
| points house-fr1s, that il there WAS any re-
covexy had in the suits it would be to tho Eric
| Railway Company; and, second, the enormous
transactions would swamp tho company. Those
suits were in The namc Of the people, schell,
Work, and Mr. Dloodgood. The company had
no OCCASION for this s., ,0Go, 600 OF stock they
bought from Vanderbilt
Nj. Beach naked that the croea Examination
Of the witness he postponed. a. the counsel
who was to conduct it was not present. It WAS
then decided between counsel that such books
IS they could agree upon could bc examined
I hy defendants counsel, and tho court then ID
| iourned until II T. M to-day.
For plaintiff, Field and Sherman for de-
1 T.. Ill