New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-07-09
AUG. BELMONT ON STAND
Says Voting of Interborough
Stock Was Legal.
THINKS SERVICES VALUABLE
Head of Banking House Tits
with Clarence H. Ven.
ner's Lawyer.

August Belmont proved an excellent wit
ness for himself In the two hours he was
on the stand yesterday I'm the suit brought
by Clarence H. Venner, a banker, and the
Continental Securities Company, INTERIOR
Ough stockholders, in an effort 10 forcs
Mr.. Belmont to turn back to the INTERIOR
ough company Sl,5G0O00 worth OF its stock
voted him in 1902 when he was president
Of the Interborough. The directors OF the
marlborough are named as co-defendants.
This stock, now worth more than 100000,
was given to Mr. Belmont for his services
in obtaining the bulk of the subscriptions to
Interborough stock; for his services in
bringing about the assignment OF the Nc
Donald contract to the marlborough for
his services I'm the sale and transfer OF the
Rapid Transit Construction Company TO
the Interborough, and for acquiring the
stock of the City Island Railroad and the
Pelham Park Railroad Company.
on the stand yesterday Mr. Belmont,
who testified that he paid about 100000 for
the last named properties, said that his
services in this connection alone were
worth the $1,5O0,O00 voted TO him.
The plaintiffs in the action allege that
these two roads were valueless, but sir.
Belmont asserted yesterday that they were
the means by which the hackers of the SUBJ
way were able to go on with the work.
The hearing yesterday was held in Mr..
Belmonts Office before Langdon p. Marvin.
referee The plaintiffs were represented by
J. Aspinwall Hodge, and Mr. Belmont had
for counsel De Lancey Nicol and Joseph
Auerbach.
A- oil uT1u znrnY Mr
began firing questions at him. but Mr.. Bel
mont ruffied his cross-examiner's calm by
his insistence upon the reforming OF many
questions.
The entire room chuckled at Mr. Hodges
discontinue, and Mr. Belmont drew the at
tentiou OF all when he found fault with ons
Of Mr.. Hodges questions and exclaimed:
Il object to being asked questions which
only cover subjects partly, and which. e
answered, would create a wrong imprss-
sion"
Mr.. Belmont declared that the purchase
OF the stock Of the City Island and Pelham
Park companies with their perpetual fran
chIses. was necessary. for with them tbs
subway builders became independent OF
the Legislature, which was then holding
I'D the enabling act introduced at the in
stance Of the builders.
The acquisition OF these two roads said
Mr. Belmont, was the key to the whole
situation"
Samuel Mcmillan acted as agent for
August Belmont & Co. in the purchase Of
the two lines. McMllan's compensation
was comparatively small. Just how much
he was paid Mr.. Belmont was unable to
70 hppks
In reply to questions Mr.. Belmont said
that there was nothing to conceal in the
entire transaction, which was known n
his associates and the stockholders.
But the public was not informed" put
in Mr.. Hodge,
The public was not in IT," answered Mr..
Belmont firmly.
THE annual reports Of the Tnterborouyh
from 1902 to 1907 made no mention Of the
transaction" asked MIR. Hodge.
THE reports were made under advice Of
counsel. The transaction was Legitimate"
Mr. Belmont then read from controct
entered into between the stockholders or
the PETERBOROUGH and August Belmont g
Co. made at the very beginning OF things
which read in part:
And the bankers are specifically author
lied and empowered Themselves 20 purchase
any stock OF such corporation or corpora.
lions, and after such purchase. Wlthout
eccountability i'm respect thereof. 10 sell the
same TO the operating company for such
price as they may deem reasonable ana
proper.
80 you see" said Mr.. Belmont, Il might
have asked any price I wished
An adjournment was taken until to-mor'
row afternoon. when Mr.. Belmont Vill ia
recalled To-morrows session will be held
IN Mr.. Hodges Office.