New-York tribune., 1902-06-20
TELLS GAS DEAL SECRETS.
W BOURKE COCHRAN SAYS SEVENTY
FIvE-CENT GAS WAS PLANNED.
SYNDICATE WAS TO GET 100000 AS PROFIT

Consdera BILE information about the deal py
which the gas and electric lighting properties IN
this city We're merged came out yesterday, when
W. Bourke Cochran testified before Theodore H
Silkman, as referee. No. Il Park Row The
hearing was on the order of Justice Wilmot NJ
Smith. Of the Supreme Court, on the appI-
cation Of George Alfred Lamb, an attorney
who brought a suit for Mr.. Cochran and MS
associates to prevent the merger of the COM
panies and discontinued the suit at Mr.. Cock
rams direction. Mr.. Lamb is suing fol a share
Of the profits he thinks Mr.. Cochran and his as
sociates made in the settlement of the litigation
At the hearing yesterday Mr.. Lamb was repre-
sented by ]. Rider Cady Treadwell Cleveland
counsel for Mr.. Cochran
At the beginning of his testimony Mr. Cock
ran said he met Mr.. Lamb a short time before
the meeting of the Consolidated Gas Companys
stockholders in January. 1900 Mr.. Cochran
said he was interested that time in gas stocks
with General Samuel Thomas and Camille Wei
denfeld, and thought it would be well for the
stockholders to prevent the merger with the elec-
trio light companies. Speaking of what led up TO
the litigation in which Mr.. Lamb was employed.
Mr.. Cochran said:
General Thomas came to mo in the summer ,1sh,9i OF
gas war which was then raging in TINS city. ,h ne
directors to Squeeze out the small sockhoders and
wished to consult me about how this couIa 3e Pre- Pre-
onGgson that eopd bring some S1n Of the
Thomas knew H great deal about the gas industry
in the West, and held decided views on gas He
it nancial ff pr9posit5on To put it il his ep 10
Serve The public than to cheat the ,stockhoders,
es eo on f the sne we weTe ena sar @ al #
could bring some of the companies together and
be to 5hs % this f sSRt
IN later General Thomas Nj Weidenfe6 ID ID and nd I
that he had S5@oopo on deposit that he would Ike
wanted
When the Consolidated Gas Company took the
first steps for the merger with the electric light
companies, Mr.. Cochran said, he and his asso-
ciates tried to get some prominent lawyers to
bring stockholders suit to prevent the deal
but the prominent lawyers did not wish to be
brought into opposition TO the corporations.
Then it was decided to get struggling young
lawyer TO undertake the work, he declared and
Mr.. Lamb was selected. Mr.. Lamb attended
the meeting of the stockholders of the Con-
solidated Gas Company but he was not recog-
nized as a representative of the stockholders
opposed TO the merger although he held proxies.
William c. Whitney and Thomas F. Ryan were
elected directors of the company. Suits to pre-
vent merger were brought by Mr.. Lamb in
the name of a stockholder named Bull, and by
another lawyer in the name Of J. D. Wolf, jr
AGREEMENT ON a SETTLEMENT.
Thomas F. Ryan and General Thomas were
friends, MI. Cochran testified. and they talked
together about settlement. Mr.. Ryan said
the electrical purchase was a good one, and had
been nearly completed. General Thomas re-
Piled that he thought ne and his associates
would better get out Immediately. Mr. Whitney
and Mr. Ryan then conferred with General
Thomas and Mr.. Cochran and an agreement
was reached Mr.. Whitney and Mr.. Ryan ex-
planned that a consolidation Of the companies
was to be brought about. They and Anthony
Brady were to get the largest share OF the
$5.O0OOo0 which the syndicate expected to re-
ceive as profit in the consolidation Mr.. Cock
ran. General Thomas and Mr.. Weidenfeld were
to get each one-slxteenth and the Standard Oil
interest was to receive one-sixteenth.
The New Amsterdam company was absorbed
by the syndicate in May. 1900 and Mr.. Whit
ney went to Europe. Mr.. Cochran and his as
sociates offered to settle at $4,000 each IN
December of that year. the witness said. At a
conference in Mr. whitney's house Mr.. Whitney
asserted that the Standard Oil interests had
failed to carry out terms Of agreement and
that he would have to take the money out Of
his own pocket to keep his agreement with
MI Cochran and his associates.
But we have deposited our stock and It has
deprecated in value" Mr.. Cochran quoted Gen
eral Thomas as saying. We've lost" How
much?" Mr.. Whitney asked. General Thomas
replied he had lost $4s, 500. and Mr.. Whitney
said he would send check the next day, ac-
cording to the witness.
That next day never came" continued Mr..
Cochran. We waited and never heard from
them Finally. in March, 1901. when 1 was in
the country General Thomas called me up on
the telephone and told that Mr.. Ryan had
offered $3.50 600 as consideration for all claims
pending a couple of days later L wrote TO Gen
eral Thomas and tod him that could not
agree TO any such settlement, as il would not be
the recognition of any right on our part, but
simply the aims of charity
SETTLED FOR S325OOo
Mr. Cochran read the letter. It was a long
one and a strong one He then said that about
the middle of December, 1901, the claims were
settled for S.25 600 and release was signed.
After the money had been paid and the re-
lease signed" said Mr.. Cochran, Il was asked
to get discontnuance from Mr.. Lamb. l
wrote Mr. Lamb and received an informal dis
continuance from him in letter which he wrote
to me on December L. 1901" This letter MI
Cochran read. He said that afterward Mr.. Lamb
was paid 50 800 for his services.
Mr. Cochran asserted that after the discontn-
uance had been obtained from Mr.. Lamb he
had been informed by the other side that the
lawyer had failed to discontinue a suit against
the company brought in the name of Jared D.
Wolf, jr.
II saw Mr Nicon the attorney for the d.
rectors" he added, and told him that 1 did not
know anything about that suit, and that did
not think Mr. Lamb did. Mr.. NicoIl told me
he knew Lamb pretty well, and that Lamb knew
all about the Wolf suit and controlled it." Mr.
Cochran said that he then told Camille Weiden-
field that if he felt any moral responsibility to
pay Lamb anything for the discontinuance of
the suit TO do so, and he would bear some of
the expense.
IT t6Id Mr. wAidAnfe1d assorted Mr. Cocu