New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-11-26
PRICE FOUR CENTS.
RAILROAD INTERESTS.
OPPOSING A UNION OF LINES
ARGUMENTS IN THE SUIT OF b. W. GILLETr AGAINST
TIE u

ARGUMENTS IN THE SUIT OF b. W. GILLETT AGAINST
THE ELEVATED RAILWAY COMPANIES.
The suit of Benjamin w. Gilett against tho
three elevated railway companies came up yesterday
morning before Judge Batchford in the United States
Crcut Court motion on tho part of the palnti Ia
continue the restraining order preventing the CARRYING
ot oi the agreement OF October % Francis N Bangs
and stephen p. Nash appeared for the plaintiff and
David Dunley Field and Mr.. Bacon, OF Dorsheimer,
Bacon Il Deyo, represented the roads It was argued
IN behalf OF the plaintiff that the settlement should have
been submitted TO the stockholders and that two OF the
directors were influenced by desire to increase tho
value Of their stock Mr. Bangs presented affidavit
OF BENJAMIN ". LudingtOn containing the following
statements:
"0n July there an eli cton Of directors OF the
Metropolitan Company at which Gould. Connor, Sage
Dillon and others were elected directOrs At that time
Mr. Gould owned only 100 shares of the stock OF tho
company, and owned and held of the stock as
depOnent believes until after the settlement was
made After that time a limited partnership
was formed between W. L. COnnor George J. Gould,
and &. p. Morosin under the firm name Of W. f. Connor
Co.. In which Jay Gould was special partner invest
ing S3O0,000 On July Mr. Gould owned no Manhat-
tan stock, but while the company in the hands OF
hereceyers and ts stock very much depressed in
the market Mr. Gould purchased largely and by Octo-
Der had on the books OF the company 10000 shares
his name, 100 shares in the name Of W. T. Con-
nor Co., LOCO shares in the name of George j. Gould,
400 hundred shares in the name Of G. p Morosini and
In the Of three clerks named Segur skwOrth and
Wilson, employed IN the Office OF W. f. COnnor & Co.,
5000 shares. Subsequent to October %,
Jay Gould and Russell Sage already d.
rectOrs in the Metropolitan Company, were
made directors of the New-York Company, and No.
vember 9, Jay Gould, George j. Could Russell Sage,
Cyrus W. Field and W. f. ConnOr made directors of
the Manhattan Company aud Jay Gould president,
From the facts in his knowledge of proceedings had
in the suit Of the people against the Manhattan Conn
pany the deponent believes the entire scheme OF placing
the Manhattan Company in the hands OF receiver
the purpose OF procuring notifications Of the tr
partte agreement and the leases to tho Manhattan Of
the other two roads"
In opposing the motion Mr.. Bacon argued that the
of October 22 without the ratification OF the stock
holders and that the statements that the agreement
made iIauduently unfOunded. In support of his
argument he read alilayts from jay Could Russell
sage, " e connor; Cyrus v. Field and
GouiIs adavt after reciting the origin OF his con-
soon became convinced tnat the Metropolitan Com
pany was in an insoyen condition and could not possi-
bly, meet its liabilities unless the leases which IT and tho
Company broken up. became convinced also tnat
hind could loug bear up under load of obigs
tions. On the suit of John c. Watson IN the United
claim tenable. Upon receiving this advice, L
that the position OF the companies was reversed,
Of the companies the situation OF the New
York Company was the best, that OF the Manhattan
the next, and that of the metropolitan the worst OF
haitian Company stock" After stating the manner In
which tho agreement brought abOIt through the
ettot5 OF Mr Field affidavit OF Ir GOull continues
have not betrayed the interests OF the Metropolitan
shareholders, sacrificed them, them sub
serylcnt 10 my own At the time Of making tho
settlement OF October %, 1851. l had a larger
interest in the Metropolitan and NeW-IUrk Companies
than in The Manhattan Company interest being 1900
in the Metropolitan Company aud 1000 shares
in the Ncw-NOrk Company my actual cash inYestment
amounting 20 the S7l03j4,2l wLile my actual
casn investment in the shares of the Manhattan Company
was but 1893 05I 25 At the time of making the settle
ment tine insolvency OF the Manhattan imminent
second mortgage bonds due on November wouldnot
have been paid and default would have occurred on
the given to the bonds. Every charge
contained in bill OF bad faith my part Is false"
Russell sage, in his affidavit declares that previous TO
the settlement he had been heavy holder OF the Mero
aid had been short" the Manhattan
tnat MS interest was to increase the value OF
Metropolitan stock glns that OF the Manhattan.
The affidavit Cyrus W. Field contains denial that he
n Metropolitan stock untlt November,
1881. declares that ne had sold out his Manhattan
stock at a early date, and mad repurchascd IL till
the settlement was contemplated. He describes tho
efforts 70 secure the dissolution OF the Ola leases and the
LITIGATION which the roads became involved
General Horace Porter in affidavit detailed the
reasons led the case; and ne state
meutS dney Dillon, W. f. COnnOr and ". X. Car
rsUn effect that the agreement not made
corrupty. affidavit OF John l.. Body treasurer OF
the Manhattan Company aud secretary Of the Metro
poan Company forth that the suit IN prOgTess
was nsgated by sylvester IA. kneciand, the owner or
a considerable number OF shares OF tne stock OF the
Metropolitan Company. Arguments were made ny David
Dudley Field companies and by Mcssr Nash and
Bangs plaun. Judge BlatchiOrd reserved MS de-
cislOn.