New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1868-12-03
THE ERIE WAR.
THE BINGHAMToN SUIT.

bv tfeilefti Ih i'iuOif0 Noul'S
ma motion the result Of which was breh3 announced
81" " ,a1,,s ,,ners was made Tuesday.
a. +,rda, last the Erie Railway company was served
~ summons and complaint by the Attorney General IN
,ir broncht by him in the name Of tie People, for
a., ,,soiutiou 81 the Eric Railway Company and the ap
"ninfncnt of Receiver. Al the same time an linnciSl
Ind order 10 show cause why Receiver should hol nc
nnoiued was served the latter retunable at Binghau
~ Monday, November 30. On that day counsel on Do
sides appeared &C the Special Term at BngnapGlon'
cralmoved for an injunction restraining me comlTmf
nom dspong OF It's property and also for me appn
ncnt OF Receiver Mr. Redheld addressed ,V rtv of
some length, urging that the purchase anu 20" aie
the Boston, Hartford, aud Erie Railway oCnuS t sisted
sufficient Tor Tue ussolatloo ' nc pacavers were abso
that all previous appointments OF ieoevg actou in
nd e,ted authority 10 the elect that neither STOCK
hdor nm crsii'y nreyions 10 Judgment couId 9oIi I
such relief lie urged 34aI Foeeed at once behalf Of
The People 10 appoint new fegelv Inc Erc Conpapy
Mr. Redields argument counsel TOT Ao ,recdin fhe
obcrted no some technical defects M the i
order show cause not ha'InE oorirg 10 nave been
gtanfG t 6ey mad sfayIts showing that the present
directors we're involved IN the 3neeS e91see
against Company, but tai they siiou lU i 1on
SiayIts until technical objections were pSSe upu'
e Court sustained the objections and dismissed inc mo
ZION plaintiffs counsel then applied Tor an order TO SHOW
anse an The spot but objection being made the Court
rfnsed 10 rran it, ON the following morning fIuesday
s NE DeP9 Cont With Mr. Rcdfeid and produced the
necessary orders Tet9rna9e a{ @ % o T =" the
Company. The motion was renewed ana alteT sum
sisted on behalf OF the Company that no case ior so
luton had been made out The Court declining TO ap
had delivered following opinion aud granted the sub
joined order -
SUPREME CoTET BROOM sf re-, . TEFn-T3 3 People
Dec. l. lSs-Aetlon brought by TIE Attofney GeneIa
s stir io of tbe Code OF Procedure for the purpose
f yacatug annung the existence Of the defendant
SHOW low cause for su injunction ana Receiver
MIR Hammond, Deputy Attorney General, and Mr.. Red
field for the people Mr. Sherman ana others for de
PENDANT A., D., ,-,.. =, a., ,..-
granted by Justice of tins Court The place OF tal Is
OF Code. which provides. among other things that an
action may be brought by the Attorney GeneI@ m NE
Supreme Court judge thereof for the purpose of va
eating the charter auuulug the existence OF corpora
uon other than municipal whenever such corporation
shall do or omit TO do certain acts among which
ore these ]. Offend against any Of the provisions
OF the act or acts creating altering, or renew
ing sne9 eoyporhoni or 2 violate the provisions OF
charter by abuse o. s powers; or 3 Whenever It snail
General Whenever he shall have reason to believe that
tablshed by proof, TO apply Tor leave and upon leave
gIanSd 10 Rfins inc elton Ia INC manner have men
snaicent facfs are alleged in ne c6mJis I' to i
the bringing Of Tie action and they have u0tyet been
shows that actions have been commenced against the
defendant ana its directors by stockholders Of the deen
liant IN which acton two different Receivers have been
tret and OF such Receivers has also appointed
Receiver in similar action brought 10y sockho.der in
Inc Circuit Court Of the United States sitting in the CITY
Of New York The General Term Of this Court in
me FTst District, held in Howe agt deuel. !
and others ll3 Barbour J0i. that the
ysitorial powers conferred sDon the Court Of Chauce
uolpoHuos IN equity can only be EXERCISED by the SUI
creme Court on an application made by the Instance OF
Of director or Other oieer having genera s9
siniendenee Of its concerns aud that action cannot
% prought under the statute by stakeholder against
, sI anS S ne b I5isis as e M sfs
pdutnelt OF a receiver Of the properly aud effects
The eeTDoraiion That cs ease ho oe taff tgs a.
nav Sc restrained sueh action from doing isg ns
seh an action brought by soekholder and apIot9
receiver therein, under lts geheIa can have a re :,
,e,yer appointed until he has Ju9gIhe1s a in TVe u
s 20 Di and others Supra controlling authority uas
DO Ecelyer Of the de;aaaa, T ACTON bfoaeht by II
,lacr or stockholders OF the colll1nS 9nu
eabhoe @ ,n snch actions have been hastily nade q
80 that thew will be reversed ~ uo aS b,re heen =
th teTeiore OF opinion it Is my duty 10 eiyoln
IT, defendant, its directors oSos, ,sses.i1 of the -
Itoo , or Of any of the property ana enec 0l
Efe Conlpsry but they viii be required 10 ae
isfe IN ann receiver whO shall be alpobieo =,
itvet oction The interests involved IN us II
sc,oo are tho greatest lnaSnlIuoS, Sn 70 q
sts"e therefore hesitate aDoHt apposR,.Ie a.
ee,ep ro.e would imply that tue defendant ehate
should vacated ana nc e1isent Cont soud have
No. ,cidc information than Is eohtalheu ~ y
frf, -
pilnt ~. ,it T shall therefore appoint referee
10 thoroughly examine INTO uo tic ciar,cfer
aud condition ef nc & fae,111 ne Fric Kali y
and condition Of nll ucilohs 1910 ,Sitb u.f~lc
No, company and tho Directors ti,eLsg M t3,d
t1 ell Directors of the defendant Should DO Iolpuu'
am r0i1ed ia the lnCauIiie from 80 f
fal p6%ors authority Wtous verfib b0ads Of lie
Cant aud from issuiBg any ieN i,vs ~ lie
t5sua, COMPANY aud from converting an5 ps o,t,av
fs,mu11y INTO stock thereof oHght " 49, ~ 90
reason which Influences Ine 10 refuse ~ Pttns ~
Ilc.iycr in tts action; aud that is, the choinOn
-. .csfs and expenses that would Do Incurred " .
Hcesvcr taking possession oI tRs Gt1S aov
thfF new should at any tine DC ucNeL'l s ~y.,1
onir,nr tbc immediate appointment 81 hee0i1e t ,
aan,tiou ol the foregoing views III an OIucI i
s ,-fec INC interests of the public ana on al
w w, 49, -, ,rfarest r faithful and economical man
eee.asnt 81 the Erie Railway COMPANY ana o's ~
she OF the Dft ol SS @ ,,,,ou tic
indvidsis guilty Of anu nol ~ si.tso ~ a. t go,
~ conducted hicnscive5 p IN pc "OtshS VI -' ~
AIDED 10 then ey tae s'ocino UT
A. gneeai Torn OF the supreme Court OF INC state o.
.n. Wa bed al the Court House ~ the Guy Oh bhS'
halniOn, IN the County Of Er0oMe tls ~ 9s3 ITece
her yg6s present, the Hon Ransom BalcOu Ju1NSS'
Tie People OF the State OF NegaQifh az, 49 nt In
way CoIupany-OD reading and hnhg lhe eOtla.n. ht
this action duly verified, the order OF Jus10o ,i9
Court granting leave 10 the Attorney SeuetS ~ cause
THIS action an order upon the defendant 70 hDY" SS
vhv an Injunction should not be granted Sa -
receiver apbOinted and after hearing ~"
General Tor the he mqtioh, an" Opposition thereto
SoHSa srtd that the 6efendsnt. It's trustees agents ahq
.stSans President Directors ana othef OiuGeLa "a
80 are and each and every Of them Is hereby
sjoined and forbidden from transferring aud den yeg
possession OF the defendants railroad, OF any Ol the prop
erty hooks papers or effects OF the defendant or hed
iu trust for H. 70 any receiver or any person camnH "
be reeeye other than snth 6jsc,ors Of tie defend
ant the Ere Railway Company, are herepy enlolnsa
from refusing o. negleeting ssey oheep sSiu re-
oeiver be appointed u this action or until te ueteI
zion OF TINS action AUD SAID directors are ehTneu AID