New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-11-28
MR.. GOULD AND MR.. SAGE.
rpsTrFyING ABOUT ELEVATED ROADS.

..ou orICKLY Mr.. GOULD CAN CHANGE HIS oPiN-
Ioy-wHAT Mr.. KNEEIAND PROPOSED.
low Gould and Russell Sage were examined
b in the Special Term Of the Superior Court before
80 Van Brunt yesterday, in the suit of the Metropoh
49,. aoa,nst the Manhattan and New York Elevated Rau-
aa Companies to set aside the agreement OF October
,ss1 All the counsel were present, William NJ Evarts
having resumed his attendance in behalf OF the de-
tendants Mr.. Gould testified to this effect
Ihaa no interest any OF the elevated roads when
vas elected director of the Metropolitan Company but
subsequently qualified as director by acquiring loS ~
Messrs Sage and Kneeland found the Metropolitan
Company in very bad financial condition found on
Investigation that the Manhattan Company was lnso
vent after the appointment of receiver. Ibeeye that
the Manhattan Company was nsoyent prlOr on 70 'T
was TO that effect. After the October agreement
changed my opinion regarding the Manhattan ann
Mr. GOud-Yesas change our opinion IN Ma f IN
We which way the wind blows and endea'or -
Mr. CarterNDid you not in any other instance change
your opinion more quickly than II ts ,on is sometimes
changed very quickly took rather less thh NOR
hase Of Mapbatsn stock in october being then short
ofit had supposed was to Se Tu Companies were
also directors Of the Manhattan CSmPdn and tSat of
the NewYOrk Company w%9 aS one 1 purchased
on ooo shares of Manhattan stock prior 10 dSt
and 300 shares G 6aTe s Of L now but when pur
chased the Metropolitan stock considered the ROAD III
NV Tarte-would You have been likely to purchase
500 Shares stock at 50 when you supposed the COLI
piMay aoaG|we saw believed that settlement
beneficial to the Metropolitan would De en9e1eH saw
Purchased 5000 shares of the NewYork stock prior to
because the roads were the hands of receiver M
Field presented a form OF settlement ana tde
were separated the Metropolitan would be bankrupt !
was afraid that Mr. Field would get back his r9ad ana
net leave the room until it was acted upon favored
the proposition. thought that the bonded debt OF the
debt and stock Of the NewYork Company. We Were
run out Mr.. Field would get his road back
ON the crossexamination conducted by David Dudley
Field, Mr.. Gould said:
Twas in no conspiracy to affect the stock of any OF the
roads reduction of the rent was absolutely necessary
Mr. Kneeland wished it 6, instead OF per cent Tor me
Metropolitan Company me settiehet "aS w Us
Mr.. Feid~Has Mr. Kneeland ever been to you to get
Mr. Goald-He has Regarding directors the practice
Is have the same directors In dterent sros % roao
Baltimore and Ohio, the Union Pacific, the wabash syS-
tenn the SeH ana Tcf fact all the systems
of the country operated by directors who are
largely common directors.
RUSSELL SAGE CALLED.
After the recess Russell Sage called TO the stand
He testified
had frequent discussions relative to the Metropolitan
road with Rufus Hatch and Messrs Garrison SEatIo
evers for permission TO issue receivers certificates be
this TSu aayS aecoh 1 in that Ppcaon
changed the state OF affairs and made pOshe 10 restore
The restoration of the New-York road, expecting if this
accomplished, to apply for the restoration OF ,nS
Metropolitan. do not remember how the opinion OF
Judge Comstock relative 10 there being need OF Ia
fcaon of the agreement by stockholders came TO be
secured.
When cross-examined Mr. Sage said:
Invent into the Metropolitan Company at the request OF
Mr. Kneeland, who was very sangune about te propcI
the road. He helped me put in Messrs. Garrison, Ma
and Porter as directors compromise tcAo' vas
Mr.. Feid-DO you know OF any conspiracy to depress
Metropolitan Manhattan stock 10 effect settlement u"
the expense of the Metropolitan -. 49,.
Mr. Sage-No, sir The settlement was the best that
could be obtained The Metropolitan had no resources
save I'm connection with the NcwYork the Manhattan
The earnings were largely those OF the New Grk %
Mr.. Field-Were you Influenced by anybody Ill your ac
Mr. Sage temphatically)-NO, sir, not by any living
being. fought for ten days but could do nothing more
Mr.. Field-Were you the victim OF anybody
Mr. Field-Dd any one in the Metropolitan Board be-
tray the interest of the stockholders
haitian stock at the expense OF Metropolitan was them
and have since BEEN stakeholder In all three conpa
Mr.. Carter-Did Mr. Kneeland in the conversations
referred 10, propose anything dishonorablef
Mr. carteFwWere you not especially friendly toward
part Of the Metropolitan Board .,. ~
Mr. Feid-Now that Mr. Carter has asked you whether
Mr. K 5 So IF the
Mr. Sage-He was willing 10 exchange block oil MS
stock for a block of the Manhattan stock.
Mr. Carter-I object this. There was nothing III my
question TO open up this line of evidence. -, 49,
Judge Van Brunt-YOur question. Mr., Carter ala uh
fortunately open the way was sorTy 10 near IL. .
Mr.. CaTter-But l did not so intend The tone OF my
inquiry - ...... .o,,o ,o,r,
Judge Van Brunt-The stenographer cannot take do"h
n tone.
MIR Field-What more was said
Mr.. sage-Well. there some private conversation
which would prefer ,,-,.o,
Mr.. Feld~MT. Kneeland proposed nothing dshonoF-
able
Mr.. Sage-NO, sir
Mr. Field-Thats all. 49, A.
Mr.. Carter-Then Mr.. Kneeland prOposcd holhihB ul0
bOnOrabef
Mr.. Sage-NO, sir.
Mr.. Cafter-That's all, Mr.. Sage
The case will 90 to-day.