New-York tribune., 1908-04-23
NJ ET." "YELLOWDOG"
TREELAND'S TESTIMONY.
Cravath Explains Stock Deal In
uoluing Er-Judge Cohen.

J
/ Paul D. Cravath told the special grand jury
which investigated the Metropolitan Street Railway
Company that he had advised that company TO pay
ex-Judge William NJ. Cohen $50 share for 30
shares OF Metropolitan stock owned by one OF his
clients although at that time the stock was quoted
/ at from 20 to 80 points lower. because Mr.. Cohen
told him that If this done he would drop the
action pending against the company and bring
no others,
! Wasn't that blackmail?' juror asked.
Mr.. Cravath replied: II don't think it was black
mall lie said there good ground for the
suit.
! Mr.. C,avath had been told that ex-Judge Cohen's
! client was about to sue the company for paying
dividends out of Its capital and that Mr Conen
expected to get a Judgment forcing certain of its
directors TO pay back to the corporation all such
unlawfully paid dividends which, II 1t had been
obtained would have meant the repayment OF a
vast
/ From II. H Vreeland's testimony. taken from tha
minutes OF the grand jury, the yellow dog Iund
is shown TO have amounted probably to far more
than half million dollars Mr NreeIand also Sdlu
that often the 'exigencies of the political situa-
ton seemed TO make it necessary TO give large
. political parties for campaign contrfou-
tions; that these were always paid in cash
and never by check, and generally through Will
lam c. Whitney. He told of the companys firm
belief in necessity of keeping certain city OH
cials friendly Of instances of the withdrawal
Of oDpoSition street openings after certain ON
! cials had been seen
There for instance. legislative lobby that
had be maintained at Albany. Charles e Conaht
figured a ''accelerator' as well as Lemuei Ely
Qigg- ,
Ex-Judge Cohen told the grand jury frleno
Of his had bought 200 shares of Metropolitan sloch
when 1t was at $3.50 Then the stock fell 10 AROUND
$40 a share, end his friend asked him to sue the
company to force st to buy his s'och d' '' f
he had paid for it. . .
There nothing criminal in the trahSactio'', ,
said Mr. Cohen. Il will tell you ABOUT II Uo'u
! Mr. Cravath that l going 10 turn tne nid''e'
I over to an attorney and adviser in t'e az
ton I told him the theory on which the actoo
would be brought and also that there was no desire
to make money that my friend only ~anteo 10 se'
| back what no had paid for the stock Later MI
| Cravath called up and said; We Will sehu you
a check and l said: When 1 have settled 'ns
| case. this will be the end of my cohnectioh Win
| similar litigation for one.
Mr. Cohen said that corporations would o'teni
settIe that way rather than be involved III eAleh-
si,e litigation "I based my theory on the 1dcI
| that I had examined the record in the Nornlser
s,,it and their-I don't remember what or1cefs-
hut some officers tried TO show that per cent hau
! NOT heer earned heretofore ] knew II hao Oe7u
/ maid and therefore it must have come from some
| nlaca other than the earnings. l have not the
! slightest independent evidence 10 prov" '''''
though .!o,,r-, IL,
dasirous not 10 have the company lnvolVeo III
! litigation. at that time because II "ouI" no
| meant other lawsuits. end they had hopeo 10
- rro,,ision bv issue of securities for the large
eoatinr dept the Metropolitan Securities Company
! then had. ,. =, ,,,efete5
| 4 grand juror. ..,, .,Ia
,or,ors+ior LAWYERS many times have TO advise the
! sacrifice of a few thousand dollars 10 a''iN q "
suit at Ct tical time 49,,
! err. - ,,e not always an agreement as to the
, 70 the road of the political Contributions aS
! the following extract from MI ereelann 49,,
| NOW, in regard to contributions OF 49," 70 C"e
| and $500 to Tammany Hall shows
~. r,-an Mr.. Cravath, Mr. Yreeland ana !
we're together discussing the mat'eF 4tr+oIs H and
poItiicaI coz Of the executive committee. crayath
fstd G dompan1 S m Rvsn Hs said aid
stinct was rather against H. ou5 IN THE money
/ IL should he done ana tlat va ui
! was got and distributed
There are repeated references in his testimony 10
tbe Electric Storage Battery pool "h1ch' acooIu t
/ ing to Wall Street history, was opeld'7u ~ ~
| ioin+ interest Of some traction nhahclers anu
/ rious Tsmnlany politicians in 1879 MI 'le '.l :
! :a he thought that these accounts were caTrleo
| 11y Mr. Whitney for the benefit of the company ~
/ take care Of certain persons -
There was another check for s1e"'t ora"h o.'
| r,.cer,ber 70 1899 This money Mr.. Nreeland salo'
! - ,,oor advanced 10 Mr.. Whitney and later re-
| ,sid Another check, also drawn on Decenoer H.
/ u,az for $4,000 payable TO & W. NoIoe' '
eliminated banker. Mr. Morse ana Ionh - 49,, :
! 49,, . mower in Tammany Hall, were lhtlraa'9
, - ..itness said In 1899 Van Wyck was
I
| - - >euy York The yellow dog fund gre"
ranidI, in 1900 for in the spring OF that year S'
| -9I large paynents appeared TO the order OF 'is
C+roa+ railway Association and there were more III
| 49,, fu This association. the Public Service Conl-
-, a,scovered in its investigation OF the inter
,,,h ,Ietropolftan took care of various les1sia-
| 49,, a4ea;re in Albany. Mr.. Treeland also told or
49, SEQ 600 contribution 1892 for political pur-
! poses" . -, a,,,. had n
NJ 1-rae,and then said that the company hao to
- 40 consent of the Borough President and Com
,ssioper Of Water Gas and Electricity in opening
| -, s+raets and that if the commissioner was an
| +aaonistfc the constructive work WOULD De ma
ta-3o,I, in,ne5ed"; that in fact the company hau
| , - ;,nneded several times, but these fnpeui-
| +s had been Withdrawn without legal proceed
| tngs Here the testimony ran
was the method of securing these with,
80, in some way by Cultivating the IaEot oI
.Tasa officials? A.-There was no action 70 SlSe
~ arv impression, because permit would pc ~
/ III otfice AMI under the best endeaNor we SoulG
! not get II and all of sudden IL was sAsleu aiiN
sen ~ y6u have no doubt yourself why the per
/ r,ir was given-somebOdy was seen ana therefore
the permit given? Al Wouid nave d So'S
strong IDEA that something was oohe. -
1,he witness said it was that few bills
which the company considered antagonistic TO us
/ t-a-sst we're passed. In connection with check
! for s25 600 he explained that this check was
| drawn 70 Charles A Conant TO make loan TO
| rrbo,oas Quinn. then the publisher Of The Daily
News" to secure his support in traction questions
affecting the East Side