The sun. [volume] (New York [N.Y.]) 1833-1916, 1913-03-01

''Du You mean to say" said Mr..
Shonts, that the validating of all Of
Your existing third track franchises
and the creation Of this additional
enormous earning power Of the com
pany Is of no value To tn. stockhold-
ersc"
Well said Mr.. thadbourne, II am
not here representing the Manhattan
company. | am here representing the
COULD estate. aud I see nothing in this
proposition that TX of any advantage
to II. !
Whats your proposition" asked
Mr. Shouts.
Mr.. shouts IN his letter to Mr.. Rookie
fellcr then goes on to say that Mr..
thadbourne had remarked that lie
hadn't had II chance to discuss the mat
tor to a conclusion with Mr.. Gould but
was prepared tu do So
~ then asked Mr.. Gould If should
retire wrote Mir. Shonts. MIR. Gould
nssented and said he would turn the
matter over To Mr.. Chadbourne, and
that MIR. thadbournc would come to my
office which happens to I've in the same
building IN u few minutes"
Mr. Gould's narrative Of the same
proceeding was much at variance with
that nf MIR. Shonts.
at that time, Mr.. Shonts to the
contrary notwithstanding,' says MIR.
Gould, "he, Mr.. Chadbourne. and myself
had ~ long conference respecting the
merits and dement's to the Manhattan
company of the suggested contracts,
Mr.. Shunts claiming that they would
add to the security and value Of the
Manhattan stock. and | maintaining
that the Manhattan company should
have an additional rental out of the
increased earnings
Mr.. Shonts picked up this statement
of Mr.. Gould's in "A note which he gave
out IN connection with the Rockefeller
letter.
AT no time" said Mr.. Shonts, has
any suggestion ever been made to me
hy Mr. Gould that the Manhattan would
require increased rental as Il consdera-
tion Of approving the contracts
Mr.. Gould on the other hand refer
ring to Mr.. Shonts's remarks about the
plea for the Gould estate, said Not
one syllable regarding the Gould estate
or its stock holding or what the estate
could get out Of il, or what anybody
woul,i get out of II. except the Man
haitian Railway Company was men
toned directly or indirectly, or even
suggested 10y Mr.. Chadhourne MIR.
Shonts or myself.
FINALLY Mr.. Shonts asked how much
additional rental thought the Manhat-
tan company should have, and that, as
was leaving shortly for Lakewood. 7
would have Mr.. Chadhourne see him
after ! had had an opportunity of talk
ing II over"
MIR. Shonts with tho idea that Mr..
Gould and Mr. thadbourne were about
to discuss the proposition" and that
it would be more delicate of him to re-
b,.,
Chadbourne presently Joined him.
Mr.. Shonts. going ahead with his
narrative to MIR. Rockefeller. said that
a. soon as Mr.. thadhourne appeared he
said he would suggest, inasmuch as the
Gould estate was the only stockholder
that seemed to he alive to the possi-
hlites OF the situation. that as the
simplest way out Of the whole situation
we buy the Gould holdings"
Mr.. Sitonts asked IL the lawyer knew
the extent of the Gould holdings.
Yes" he replied. remarkng later
that they amounted to $4,000 shares, in
cluding what the Gould estate owned
and what Individual members of the
Gould family held.
81 asked what was the price" wrote
Mr.. Shonts. He said that as To the price
he would let me know in five minutes,
turned promptly and said that Mr..
Gould told him Mr.. Morgan at one time
had offered 500 a share for the Gould
holdings but that he would now take
S115. | said that inasmuch as the mar
ket price was only $3.50 I felt very con-
fdent 1t would he impossible to find a
purchaser for the Could holdings at any
such price.
Mr.. Chadbourne answered that this
was only Mr.. Goud's asking price, and
that he would probably be willing 10
shade that 10 some extent. and sug-
gested that ! see what / could do in a
general way, and then we could get
down to an actual price.
81 then said 10 Mr.. Chadbourne, III
I could find purchaser at an agreed
price two things would have to be pro-
yided for: First. Mr.. Gould would have
to reassemble his board and pass the
resolutions asked for by the Inter
borough: and. second, he would have tc
turn the control OF the board over to the
purchaser
Mr.. Chadbourne replied that both of
these things could be easily arranged, as
a certificate could easily be put through
by the board and that Mr.. Gould con-
trolled the majority Of the board"
MT. bOulu DHIy ItIeItH'e 10 tTls
proceeding was that when Mr.. Chad
bourne returned TO Mr.. Goulds office
he said: Mr.. Shonts wants you to put
price on your Manhattan stock"
He will not pay the price I will put
upon it," Mr.. Gould says he replied. 81
would not sell it under s175 a share, and
guess there is no danger of getting
that"
Mr. Gould then left for Lakewood and
Sir, Shonts went TO the Office Of j. p.
Morgan & Co., where he told what had
happened to Henry l.. Dawson and
J. +. Morgan, Jr The next morning
Mr.. Morgan said they had decided not
10 buy the Gould stock and advised Mr..
Shonts to see John ID. Rockefeller, Jr.
Mr.. Shonts did so the next morning, and
met Frederick T. Gates, who had been
kept Informed of the negotiations
through Mr.. Skitt. Mr.. Shonts was told
that the Rockefelers felt themselves
committed to the plan set forth by Mr..
!Skitt and adopted by the lnterborough.
Mr.. Shonts then told Mr.. Rockefeller
that "a nlan for third tracking had heeD