The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-08-10

in the West. AS soon as Mr.. Conhor
learned that Mr.. Goulds name mad
been placed upon the proxy he tele-
graphed TO Mr.. Gould the fact. Speedily
Mr.. Conner received from Mr.. Gould
an answer to the telegram in which 1t
was said by Mr.. Gould that he had no
interest whatever in the company ana
Furthermore insisted that his name be
withdrawn as a proxy. This Mr.. Con-
nor instantly caused to be done Mr..
Gould returned from st. Louis shortly
before the Netropolitan's election. Pre-
sumably Russell Sage Immediately be-
gan to use his power Of persuasion In
order to induce Mr.. Gould to become
In the property.
Mr.. Sage had secured a large inter-
est in the stock. and as he was en-
thusiastic, very likely his enthusiasm
was in part the cause OF Mr.. Goulds
yielding at last to his persuasion. AT
all events, Mr.. Gould did yield. He
took an interest I'm the stock and also
in the management. He was elected
one of the directors. With him as d.
rectors were elected Washington L.
Conner and Samuel Sloane, one OF the
great men of his day in New York
business life, q man of unspotted in
tegrity; Russell Sage and Sidney Dill
Ion. who was identified with the con-
struction and completion of the Union
Pacific Railroad.
Mr.. Gould having entered upon this
enterprise Unexpectedly, without pre-
meditation, and chiefly at the instance
of his friend Russell Sage, neverthe-
less became the true leader OF the
Metropolitan Elevated Railroad Com
pany. Much Of the commercial sue
cess and the prosperity OF this system
were due to Mr.. Gould's leadership
1t was inevitable, however, that
there should arise severe controversy
between the owners of the New York
Elevated, in which Cyrus w. Field
was the leader, and the Metropolitan
Company, OF which the leadership was
held by Mr.. Gould. The controversy
became so desperate that a number Of
legal contests were begun, an incident
of which was the circulation Of varl-
Gus scandalous reports, so scandalous
in fact as to reach the attention OF the
Legislature in Albany. A resolution
was adopted for the appointment of a
..mmittee of investigation, and the
chairman of that committee, by reason
OF his association with II and by other
conspicuous activities with which he
was identified while serving as a
member of the Legislature, became,
II not actually the most, GER
tainly one of the most conspicuous
members OF that body. His name
was Theodore Roosevelt. The contest
went SO far as to lead to an attempt
to impeach Judge Westbrook of the
Supreme Court and the Attorney
General OF the State, Hamilton Ward,
who earlier had gained prominence
when serving as a member Of Con-
gress from New York State. These
impeachment efforts failed. In these
controversies Mr.. Gould's lieutenant
and right hand man was Washington
f. Conner, while in like capacity
George 5. Scott served for Mr.. Field.
ms relation undoubtedly led to
conferences between them which
brought them to an agreement that
1t was the better part to bring about
peace between Mr. Field and Mr..
Gould. Negotiations to that end were
begun and were long continued AT
times 1t seemed almost as though they
would fail. Instead of that, however.
they were at last successful, SO that
a peace agreement was made. al
thought this was kept a secret for the
better part OF year.
Manhattan Company stock was
bought for Jay Gould. Cyrus Field,
Russell Sage and WASHINGTON T.. Con
nor and Sidney Dillon. The Manhattan
stock represented the operating COM
pony, and before the consolidation the
New York Elevated owned the Third
avenue and Ninth avenue line. while
the metropolitan was in control of
the Sixth and Second avenue lines. Mr.
Gould controlled the METROPOLITAN.
while Cyrus Field was in control of
the New York Elevated. After the
long and bitter legal fight the three
companies were consolidated and were
called the Manhattan. Some time af-
ter the consolidation, when 1t had
proved TO be great success. Mr.. Field
began to buy quietly for control and
after securing a large amount of stock
marked the price OF the market ahove
40. His loans We're carried on the
oasis pt this high quotation. Mr.. Field
purposcd deal whereby an English
syndicate would take over his stock
at IA price above 10. The nominal
quotation for the stock was above 100
but II was held there by Mr., Field
russell Sage objected to buying at l2O
he!ng of the opinion that if Mr..
Fields stock was thrown upon the
market the price would go below SO
one Of Mr., Fields brokers. who
was under the impression that Mr.
Gould was party to this deal. con-
suited NJ, Conner. seeking to go,
Mr., Connor's opinion, ana prcsum-
ably in that roundabout wav Mr.
dou!ds opinion respecting the effect
upon the market when the success of
this deal was announced.
For the plan for the consolidation
Of the three companies. although il
was put forward and consummated
involved the utilization by Mr.. Field
or much more ready money than he
mad AT his command. In fact he ap-
pealed to Mr.. Gould, asking him to
carry for him without any security
or margin a large block OF Manhat-
tan stock.
As The Advantages OF the consoli-
dai,on became known Mr.. Field. who
mad now large pront on the stock
which was carried by MIR. Gould took
up this stock and had il carried hy
ten brokers who were of financial re-
spunsibilitN and who were very promi-
ncnt, Furthermore, Mr. Field used his
prOfltS as "A basis for mn rC'ps u,bar.h,.